Darlington Building Society Conveyancing Panel Information

No such training is arranged by the CML although they do host a number of general legal related conferences which are attended by firms on the Darlington Building Society conveyancing panel. We do intend to run specific lender focused seminars in the coming months including a webinar on Darlington Building Society’s Part 2 obligations. Solicitors on the Darlington Building Society conveyancing panel are welcome. Further details will be communicated as part of the LENDERmonitor Alerts.

Darlington Building Society 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 Darlington Building Society 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?

A leading search provider lists over 70 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 call your search provider or call one of the leading search companies such as STL.

During 2013, 84 sections of the UK Finance Lenders’ Handbook P2 were changed by Darlington Building Society. Some changes are more important than others but as a firm on the Darlington Building Society conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.

Remember: CML requirements are not guidelines; they are the lender client’s instructions.

Darlington Building Society approved panel lawyers have to comply with the Part II instructions relating to Transfer of Equity. These are set out in Section 16.3. First, your firm must approve the form of Transfer of Equity (which should be in the Land Registry's standard form) and, if Darlington Building Society require, the deed of covenant on their behalf. You will need to check Darlington Building Society CML Part 2 conditions to see if Darlington Building Society have standard forms of transfer and deed of covenant. Please note that this requirement can change from one transaction to another so do check! Second,When drafting or approving a transfer, you should bear in mind that: although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage; the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check ; there should be no statement that all interest has been paid to date. Further obligations are set out in the UK Finance Lenders’ Handbook which have to be followed by all firms on the Darlington Building Society conveyancing panel

The Law Society’s CQS accreditation is no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to remain on their panels. Some Lenders now use the scheme as the starting point for Panel approval such as HSBC.

You would be advised to communicate with Darlington Building Society to obtain standard documents. The CML Handbook incorporates an express section for lenders to set out who to contact to obtain standard documents. Darlington Building Society in their Part 2’s state: Don’t forget to disclose your Darlington Building Society solicitors panel number.