Bank of Scotland Private Conveyancing Panel Information

The CML, along with Bank of Scotland Private and other stakeholders created a standard set of requirements where a conveyancer is representing a lender such as Bank of Scotland Private alone in a residential conveyancing transaction. These obligations are contained at Part Three of the UK Finance Lenders’ Handbook and are to be followed in conjunction with Part I and II. The CML have published an example requirements letter to the borrower’s lawyer for adaptation by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel lawyer.

In operating open conveyancing panels, lenders such as Bank of Scotland Private face a number of fraud and negligence risks. While there is no authoritative source of data on lender exposure to solicitor–led mortgage fraud, anecdotal evidence from lenders indicates exposure on individual cases are often in the millions of pounds. The National Fraud Authority estimates that £1bn per year is lost in mortgage -related frauds in total, which is seen as a conservative estimate.

These risks are exacerbated by the lack of a comprehensive set of data on all conveyancing firms (which, for the avoidance of doubt, would include solicitors and conveyancers across the UK) which is in a readily accessible format. Currently, lenders vet the suitability of their panel firms against a variety of disparate, incomplete and potentially inaccurate sets of information. One top 5 lender pointed out to us that it is almost impossible to track individual fraudsters who move from firm to firm, especially where they are no longer registered or no longer hold a valid practicing certificate.

Bank of Scotland Private and other lenders are in varying stages of reviewing their approach to vetting firms on their conveyancing panels, to ensure their ongoing exposure to unsuitable firms is reduced. There is also regulatory impetus on lenders to ensure that they have satisfactory oversight of their third party panels, including a due-diligence process.

You might expect Bank of Scotland Private via their Part 2 obligations to address this but the Handbook makes no mention on time frames. You need to look at the Terms of Bank of Scotland Private’s Conveyancing Panel Appointment that you entered into. For many lender's these Terms include a clause along the following lines: ‘To keep us informed of the reasons for any delay in your being able to send the title deeds and documents we require to us within 3 months of completion or evidence of proof of registration within that period. (We will send reminders if the deeds have not been received but will not acknowledge receipt of deeds’ It is imperative to keep Bank of Scotland Private informed. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

Please tread carefully here as what you are proposing may not be acceptable to the mortgage company. It is possible that you (as a non-panel firm) or the mortgage applicant are not at liberty instruct a panel firm of your choice. Many lenders make it clear to their panel firms that where a non-panel member firm is instructed by one of their mortgage applicants, the lender will appoint a panel firm to carry out its instructions and to liaise with the borrower's conveyancing firm. You also need to make the costs implications and potential for delay very clear to your client.

We would recommend that you 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 CQS team viability as to what has happened.

You need to contact Bank of Scotland Private to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates an individual inquiry for lenders to enumerate who to contact to obtain standard documents. Bank of Scotland Private in their Part 2’s state: Please remember to disclose your Bank of Scotland Private solicitors panel reference.