Bank of Scotland Conveyancing Panel Information

The criteria to join the Bank of Scotland conveyancing panel is likely to be fairly detailed and is unlikely to include signing up to LENDERmonitor alerts.

One might ordinarily expect Bank of Scotland via their Part Two requirements to address this but the Handbook makes no mention on deadlines to send deeds. Do look at the Terms of Bank of Scotland’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 important to keep Bank of Scotland informed. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

You have a number of obligations in this regard which are to followed if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. First, You must take reasonable steps to verify that there are no discrepancies between the description of the property as valued and the title and other documents which a reasonably competent conveyancer should obtain, and, if there are, you must tell Bank of Scotland immediately. (II) You should take reasonable steps to verify that the assumptions stated by the valuer about the title (for example, its tenure, easements, boundaries and restrictions on its use) in the valuation and as stated in Bank of Scotland’s mortgage offer are correct. If they are not, please let Bank of Scotland know as soon as possible as it will be necessary for Bank of Scotland to check with the valuer whether the valuation needs to be revised. Bank of Scotland conveyancing panel solicitors are not expected to assume the role of valuer. Bank of Scotland are simply trying to ensure that the valuer has valued the property based on correct information. (III) Bank of Scotland recommend that you should advise the borrower that there may be defects in the property which are not revealed by the inspection carried out by their valuer and there may be omissions or inaccuracies in the report which do not matter to them as a lender but which would matter to the borrower. Bank of Scotland recommend that, if we send a copy of a valuation report that Bank of Scotland have obtained, you should also advise the borrower that the borrower should not rely on the report in deciding whether to proceed with the purchase and that he obtains his own more detailed report on the condition and value of the property, based on a fuller inspection such as a homebuyers report or structural survey. If you do not receive a copy of the valuation you can always ask for a copy of one from Bank of Scotland or the borrower. You still need to comply with the UK Finance Lenders’ Handbook Requirement relating to valuation reports even if you don't receive one directly. Failure to comply not only runs the risk of facing a claim by the lender but also being removed from the Bank of Scotland conveyancing panel

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

In this situation please clarify on the form what steps you have taken to discover the reasons behind cancellation of your Bank of Scotland 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 need to communicate with Bank of Scotland to obtain standard documents. The CML Handbook contains an express section for lenders to establish who to contact to obtain standard documents. Bank of Scotland in their Part 2’s state: Always remember to quote the firm’s Bank of Scotland solicitors panel reference.