Keystone Property Finance Conveyancing Panel Information

As is the case with the Law Society the CLC has begun discussions with lenders 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 Keystone Property Finance in recent years.

You might expect Keystone Property Finance via their Part Two conditions to address this but the Handbook makes no mention on deadlines to send deeds. Do look at the Terms of Keystone Property Finance’s Conveyancing Panel Appointment that you previously signed. For a number of banks these Terms have a clause such as: ‘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 Keystone Property Finance informed. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

What you should do largely depends on the reason that your firm has been removed off the Keystone Property Finance 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 Keystone Property Finance conveyancing panel.

You should 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 adversely impact your firm’s application but gives the CQS team a complete picture of what has happened.

You would be advised to get in touch with Keystone Property Finance to obtain standard documents. The CML Handbook contains a specific inquiry for banks to establish who to contact to obtain standard documents. Keystone Property Finance in their Part 2’s state: It is likely that you will need to disclose your Keystone Property Finance solicitors panel reference.