Precise Mortgages Conveyancing Panel Information

Section 16.2.1 of the UK Finance Lenders’ Handbook relevant to a solicitor on the Precise Mortgages conveyancing panel reads ‘Our mortgage secures further advances. Consequently, when a further advance is required for alterations or improvements to the property we will not normally instruct a member of our conveyancing panel but if you are instructed the appropriate provisions of this Handbook will apply’.

What you should do largely depends on the reason that your firm has been removed off the Precise Mortgages 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 compliance officer 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 Precise Mortgages conveyancing panel.

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 Precise Mortgages 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 Precise Mortgages’s mortgage offer are correct. If they are not, please let Precise Mortgages know as soon as possible as it will be necessary for Precise Mortgages to check with the valuer whether the valuation needs to be revised. Precise Mortgages conveyancing panel solicitors are not expected to assume the role of valuer. Precise Mortgages are simply trying to ensure that the valuer has valued the property based on correct information. Thirdly, Precise Mortgages 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. Precise Mortgages recommend that, if we send a copy of a valuation report that Precise Mortgages 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 Precise Mortgages 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 Precise Mortgages conveyancing panel

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

In this situation please explain on the form what action you have taken to find out the reasons behind cancellation of your Precise Mortgages 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 informing you as to why they reached this decision?

You need to get in touch with Precise Mortgages to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates an explicit inquiry for banks to enumerate who to contact to obtain standard documents. Precise Mortgages in their Part 2’s state: You will need to disclose your Precise Mortgages solicitors panel reference.