RBS- First Active Conveyancing Panel Information

The Council of Mortgage Lenders (or the BSA) do not involve themselves in training although they do host numerous general legal related conferences which are attended by firms on the RBS- First Active conveyancing panel. It is our intention to run specific lender focused seminars in the coming months including a webinar on RBS- First Active’s Part 2 requirements. Solicitors on the RBS- First Active conveyancing panel are welcome. Information about the webinar will be made available as part of the LENDERmonitor Alerts.

RBS- First Active 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’.

Remember that most ‘less usual searches’ (as described in the Law Society’s Conveyancing Handbook) are not optional as far as RBS- First Active 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 client.

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 72 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 Searchflow.

You will be aware of the trend in recent years for lenders such as RBS- First Active to take a much more pro-active approach in relation to the management and make up of their conveyancer panels. The knock on effect of this is that it is more likely that there will be a higher number of cases where a conveyancer is not on the RBS- First Active panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and RBS- First Active have appointed a separate lawyer to act on their behalf where the new CML Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires RBS- First Active’s panel solicitor to ‘ ...transfer the mortgage advance directly to the Seller’s conveyancer. The Seller’s conveyancer must be required to hold the mortgage advance on the terms of the required undertaking. The example borrower’s conveyancer’s undertaking letter includes a specific example of the seller’s undertaking’. You should expect to be advised to received the mortgage advance directly from the conveyancing solicitors for RBS- First Active. You will no doubt be required to undertake directly to RBS- First Active’s solicitors to discharge any charges secured on the property and to send directly to them the executed transfer and any other documents required to enable us to effect registration. Please remember to carefully consider undertakings in accordance with your firm’s protocol and record them in your undertakings logg. Please remember that as well as this breach of this undertaking having regulatory and compliance implications it’s breach could also result in your firm being removed off the RBS- First Active conveyancing panel.

RBS- First Active approved solicitors 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 RBS- First Active require, the deed of covenant on their behalf. You will need to check RBS- First Active CML Part 2 conditions to see if RBS- First Active 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 RBS- First Active conveyancing panel

In the circumstances please clarify on the form what action you have taken to find out the reasons behind cancellation of your RBS- First Active panel membership. In particular please provide details if you have received communications from the lender. E.G. before cessation of your panel membership did you receive any letters or calls from the lender putting you on notice?

You need to get in touch with RBS- First Active to obtain standard documents. The CML Handbook has a specific section for banks to set out who to contact to obtain standard documents. RBS- First Active in their Part 2’s state: It is likely that you will need to quote the firm’s RBS- First Active solicitors panel reference.