NRAM Ltd Conveyancing Panel Information

The CML, along with NRAM Ltd and other stakeholders developed a standard set of instructions where a conveyancer is representing a lender such as NRAM Ltd alone in a residential conveyancing transaction. These requirements are contained at Part 3 of the UK Finance Lenders’ Handbook and are to be read in conjunction with Sections One and Two. The CML have published an example requirements letter to the borrower’s conveyancer for adaptation by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel conveyancer.

The CLC has begun dialogue 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 NRAM Ltd as well as the BSA.

The answer to this question really depends on the reason that your firm has been removed off the NRAM Ltd 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 NRAM Ltd conveyancing panel.

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

The Law Society’s CQS membership is no guarantee to lender panel acceptance. Nevertheless the Council of Mortgage Lenders have indicated that it is likely to become a prerequisite for firms wishing to remain on their approved list of firms. Some mortgage companies now use the Conveyancing Quality Scheme accreditation as the starting point for Panel acceptance as is the case with HSBC.

You need to get in touch with NRAM Ltd to obtain standard documents. The CML Handbook includes a specific question for banks to reveal who to contact to obtain standard documents. NRAM Ltd in their Part 2’s state: Don’t forget to disclose the firm’s NRAM Ltd conveyancing panel reference.