Bank of Scotland Conveyancing Panel Information

We are not aware of any intention on the part of the CML to develop such a tool.

You need to be careful here as what you are suggesting may not be acceptable to the mortgage company. It is possible that you (as a non-panel firm) or the mortgage applicant are not entitled instruct a panel firm of your choice. Many lenders make it clear to their panel firms that where a non-panel member firm is instructed by one of their mortgage applicants, the lender must appoint a panel firm to carry out its instructions and to liaise with the borrower's conveyancer. You also need to make the costs implications and potential for delay very clear to your client.

During 2013, 48 sections of the UK Finance Lenders’ Handbook P2 were changed by Bank of Scotland. Some changes are more important than others but as a firm on the Bank of Scotland conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.

Remember: CML requirements are not guidelines; they are the lender client’s instructions.

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. (I) 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. (b) 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. Thirdly, 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 comprehensive 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

In this situation please explain on the form what steps 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 cessation of your panel membership did you receive any letters or calls from the lender informing you as to why they reached this decision?

You should communicate with Bank of Scotland to obtain standard documents. The CML Handbook incorporates an explicit question for banks to set out who to contact to obtain standard documents. Bank of Scotland in their Part 2’s state: Don’t forget to quote the firm’s Bank of Scotland conveyancing panel number.