Bank of Scotland Conveyancing Panel Information

We can't comment specifically on Bank of Scotland. Many major lenders are now introducing ‘file auditing’ as standard practice in relation to completed matters. This raises questions of confidentiality in relation to the buyer client and the purpose to which the results of such audits will be put. The starting point is to remember that the file does not belong to your firm, it belongs to the ‘client’. But, of course, we will normally have two clients – the buyer and the lender - and you will owe a duty of confidentiality to each. So basically, you have to separate the file and just send the lender the parts solely relating to themselves. But, of course, as this will basically be correspondence with the lender, mortgage instructions etc.

Check with your COLP but a firm should not send the complete conveyancing file without the buyer client’s express consent – and if she is in arrears with the lender she is hardly likely to agree. However, if the lender can establish a prima facie case of fraud, then you may be under an obligation to disclose the whole file.

The emerging convention is that lenders are including an authority to disclose in loan application forms to counter this problem. Mortgage Express v Sawali, [2010] EWHC 3054 (Ch) indicates that such provisions are valid. Please click here for more information about that case.

There are various requirements you need to follow 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 survey 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

With lenders and conveyancing firms working so closely with one another it is surprising that there has not been greater demand for the introduction of a bit of transparency regarding not just the figures for the Bank of Scotland conveyancing panel but for all mortgage panels

10 consumers attempt to locate a conveyancer on the Bank of Scotland panel every 4 weeks in Hendon. The lenderpanel directory service team who will show you how your firm can be identified by those searching for conveyancing in Hendon.

In this situation please clarify on the application what action you have taken to discover the reasons behind cancellation of your Bank of Scotland panel membership. 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 putting you on notice?

You need to communicate with Bank of Scotland to obtain standard documents. The CML Handbook incorporates an express inquiry for lenders to establish who to contact to obtain standard documents. Bank of Scotland in their Part 2’s state: It is likely that you will need to disclose the firm’s Bank of Scotland solicitors panel reference.