RBS- First Active Conveyancing Panel Information

The CLC has begun discussions with banks and their representative bodies to see whether and how the risks that lenders wish to mitigate could be addressed through the regulatory framework rather than via ad hoc arrangements that can differ from lender to lender. We expect that that the CLC have been in touch with lenders such as RBS- First Active as well as the BSA.

Most lenders do not operate a specific buy to let conveyancing panel but we are hearing about a few that do. We do not know what the position is with RBS- First Active as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from RBS- First Active we suggest that you call RBS- First Active to check the position.

In the same way that there is a unique RBS- First Active conveyancing panel most building societies, operate a conveyancing panel for solicitors and other conveyancers that the lender will instruct. Terms and Conditions and criteria for inclusion on a building society conveyancing panel vary from lender-to-lender. Having CQS accreditation may be a requirement. Institutional lenders, such as a building society, is a client and is entitled to instruct the solicitor or conveyancer of its choosing (who, in turn, is free to accept or refuse instructions). Therefore, if lender and borrower cannot agree which solicitor or conveyancer should represent them jointly, they would usually proceed on a separate representation basis. The BSA have not published the equivalent of the UK Finance Lenders’ Handbook Part 3s.

On the basis that your practice in is on the RBS- First Active 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 RBS- First Active are to lend, they may require indemnity insurance. In any event,you will need to check RBS- First Active’s specific requirements. Notwithstanding whether RBS- First Active will lend in such circumstances you still need to advise the borrower (unless you are acting for RBS- First Active alone) as to the risks of buying a property with an insolvent or absentee landlord.

In the circumstances please explain on the form what steps you have taken to discover the reasons behind cancellation of your RBS- First Active panel status. 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 should contact RBS- First Active to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates an explicit section for banks to reveal who to contact to obtain standard documents. RBS- First Active in their Part 2’s state: Don’t forget to quote the firm’s RBS- First Active conveyancing panel reference.