Paragon Mortgages Ltd Conveyancing Panel Information

Paragon Mortgages Ltd make no specific obligation to carry out any of the searches listed. The UK Finance Lenders’ Handbook simply states that ‘you must ensure that any other searches which may be appropriate to the particular property, taking into account its locality and other features are carried out’.

Please note that most ‘less usual searches’ (as described in the Law Society’s Conveyancing Handbook) are not optional as far as Paragon Mortgages Ltd are concerned if they are ‘appropriate’. Most lenders will not require environmental searches (you should Check Part 2 of UK Finance Lenders’ Handbook to be sure), but you are obliged to explain risks and availability to the borrower.

Ground stability, Plansearch,flood searches as well as the searches listed in the question are optional – but only to the extent that you have allowed the borrower client to make an informed choice. Regardless of whether there is a mortgage, If you have not advised the client that these (and other) searches are available and what risks they cover, then you will be liable if the client suffers loss through not conducting one. Is this covered within your Terms of Engagement or Report on Title?

One search provider lists over 65 property searches – do you know what all of them are and when they may be relevant? If you are unsure as to which searches are appropriate based on location contact your search provider or call one of the leading search companies such as Searchflow.

What you should do largely depends on the reason that your firm has been removed off the Paragon Mortgages Ltd conveyancing panel. The top 3 reasons are as follows:

1. lack of transactions
2. the lawyer is a sole practitioner
3. as part of the HSBC panel reduction.

In these three circumstances it is unlikely that you would expected to take any action. Disclosure and other compliance considerations are more likely to be relevant if the reason for removal is due to breaches of lender requirements or allegations of fraud or negligence. Whether the reasoning should trigger a disclosable 'material' breach will depend on the firm and the circumstances around possible failures to comply with the SRA Authorisation Rules, and the SRA will judge each case on its own merits. Factors such as the detriment or risk of detriment to clients, the scale of the issue and overall impact on the firm will need to be considered in deciding whether a failure is 'material'. As the COLP you will need systems to identify patterns of breaches. Even if you don't consider there to be regulatory implications the firms COFA should give some thought to whether she/he needs to take any action as result of being removed from the Paragon Mortgages Ltd conveyancing panel.

For most lenders participation on the lender's panel of conveyancers is at the absolute discretion of the the lender. Many lenders reserve the right to accept or reject any application without giving any reason. You should check your original application to join the Paragon Mortgages Ltd conveyancing panel to see if you are entitled to a reason.

On the basis that your firm in is on the Paragon Mortgages Ltd conveyancing panel and you are acting for them in relation to a leasehold property, you must report to them if it becomes apparent that the landlord is either absent or insolvent. If Paragon Mortgages Ltd are to lend, they may require indemnity insurance. In any event,you will need to check Paragon Mortgages Ltd’s specific requirements. Notwithstanding whether Paragon Mortgages Ltd will lend in such circumstances you still need to advise the borrower (unless you are acting for Paragon Mortgages Ltd alone) as to the risks of buying a property with an insolvent or absentee landlord.

It would be advisable to provide details of the date of removal, information on the reason for removal, date of appeal and any reason given for reinstatement. This should not negatively affect your application but gives the Law Society viability as to what has gone on.

You would be advised to contact Paragon Mortgages Ltd to obtain standard documents. The CML Handbook includes an express inquiry for banks to set out who to contact to obtain standard documents. Paragon Mortgages Ltd in their Part 2’s state: It helps to quote the firm’s Paragon Mortgages Ltd solicitors panel number.