Fleet Mortgages Conveyancing Panel Information

What you should do largely depends on the reason that your firm has been removed off the Fleet Mortgages 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 Fleet Mortgages conveyancing panel.

In the same way that there is a unique Fleet Mortgages 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.

When a solicitor is acting for both Fleet Mortgages and borrower there is potential for conflicts to arise. You owe duties to both clients. All information received by you from your client is confidential and cannot be disclosed without the client’s consent. In the situation you find yourself in if the purchaser will not consent to the information being passed on to the lender the solicitor must cease to act for the Fleet Mortgages and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Fleet Mortgages the reason for termination of the retainer over and above the fact that a conflict has arisen. The fact that you can no longer act should alert even the most somnambulistic of lenders that something is wrong with the borrower and/or purchase. The fact that you have disinstructed yourself should not affect your Fleet Mortgages conveyancing panel status.

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

In the circumstances please clarify on the application what action you have taken to discover the reasons behind cancellation of your Fleet Mortgages panel status. In particular please provide details if you have received communications from the lender. E.G. before revocation of your panel membership did you receive any letters or calls from the lender advising you as to their reasons?

You need to communicate with Fleet Mortgages to obtain standard documents. The The Council of Mortgage Lenders Handbook contains an individual section for lenders to reveal who to contact to obtain standard documents. Fleet Mortgages in their Part 2’s state: Please remember to quote your Fleet Mortgages conveyancing panel reference.