I am progressing with the sale of my maisonette in Victoria and the EA has just telephoned to warn that the purchasers are swapping law firm. The reason given is that the bank will only deal with solicitors on their approved list. Why would a big named lender only engage with specific lawyers rather the firm that they want to choose for their conveyancing in Victoria ?
UK lenders have always had an approved set of law firms they are willing to work with, but in the last few years big names such as Lloyds Banking Group, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for many years.
Mortgage companies blame a rise in fraud by way of justification for the cull – criteria have been stiffened as a smaller panel is easier to keep an eye on. Banks tend not to reveal how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms that have been removed from panels. Some do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. The purchasers are not going to have any sway in the decision.
My husband and I are purchasing a brand new duplex in Victoria and my solicitor is telling me that she is duty bound to the mortgage company to disclose incentives from the seller. I am nearing the developer’s deadline to exchange contracts and my preference is not to delay the conveyancing. Is my lawyer right?
You should not exchange unless you have been advised to do so by your property lawyer. A precondition to being on a bank panel is to comply with the UK Finance Lenders’ Handbook conditions. The CML Conveyancing Handbook requires that your lawyer have the appropriate Disclosure of Incentive form completed by the developer and accepted by your lender.
In what way does my ID and proof of funds have anything to do with my conveyancing in Victoria? What am I being asked for?
You are right in these requests have nothing to do with conveyancing in Victoria. Nowadays you will not be able to complete any conveyancing transaction without first handing over proof of your identity. Ordinarily this takes the form of a either your passport or driving licence as well as a utility bill. Please note that if you are providing your driving licence as proof of identification it must be both the paper part as well as the photo card part, one is not satisfactory in the absence of the other.
Verification of your origin of funds is necessary under Money Laundering Regulations. Please do not be offended when you are asked to produce this as your conveyancing solicitor will need to retain this information on file. Your Victoria conveyancing lawyer will require evidence of proof of funds prior to accepting any money from you into their client account and they should also ask further questions regarding the origin of monies.
Should our solicitor be asking questions about flooding during the conveyancing in Victoria.
The risk of flooding is if increasing concern for conveyancers dealing with homes in Victoria. There are those who acquire a house in Victoria, completely aware that at some time, it may be flooded. However, leaving to one side the physical destruction, if a property is at risk of flooding, it may be difficult to get a mortgage, satisfactory building insurance, or dispose of the premises. Steps can be carried out during the course of a property purchase to forewarn the purchaser.
Solicitors are not best placed to offer advice on flood risk, but there are a various searches that can be carried out by the purchaser or on a buyer’s behalf which should give them a better understanding of the risks in Victoria. The conventional set of property information forms supplied to a purchaser’s lawyer (where the Conveyancing Protocol is adopted) contains a standard inquiry of the seller to discover whether the premises has historically flooded. In the event that the premises has been flooded in past which is not disclosed by the seller, then a buyer could issue a compensation claim as a result of such an incorrect response. A buyer’s conveyancers should also order an environmental search. This should disclose if there is any known flood risk. If so, more detailed inquiries will need to be initiated.
I decided to have a survey completed on a house in Victoria in advance of retaining conveyancers. I have been advised that there is a flying freehold aspect to the property. My surveyor advised that some mortgage companies may not give a mortgage on a flying freehold premises.
It depends who your proposed lender is. HSBC has different instructions for example to Birmingham Midshires. Should you wish to telephone us we can look into this further with the appropriate bank. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Victoria. Conveyancing may be slightly more expensive based on your lender's requirements.
My father-in-law has recommend that I appoint his conveyancers in Victoria. Should I use them?
Much as we are happy to recommend a Victoria conveyancing lawyer it’s preferable to select a conveyancing practitioner is to have guidance from friends or relatives who have previously instructed the firm you're contemplating using.