Royal Bank of Scotland Conveyancing Panel Information

The CML, together with Royal Bank of Scotland and other lenders developed a standard set of requirements where a conveyancer is acting for a lender such as Royal Bank of Scotland alone in a residential conveyancing transaction. These requirements are contained at Part Three 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 conveyancing solicitor 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 lawyer.

We can't comment specifically on Royal 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 borrower 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 he is in dispute 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 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 Royal 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 Royal Bank of Scotland’s mortgage offer are correct. If they are not, please let Royal Bank of Scotland know as soon as possible as it will be necessary for Royal Bank of Scotland to check with the valuer whether the valuation needs to be revised. Royal Bank of Scotland conveyancing panel solicitors are not expected to assume the role of valuer. Royal Bank of Scotland are simply trying to ensure that the valuer has valued the property based on correct information. (c) Royal 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. Royal Bank of Scotland recommend that, if we send a copy of a valuation report that Royal 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 comprehensive survey. If you do not receive a copy of the valuation you can always ask for a copy of one from Royal 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 Royal Bank of Scotland conveyancing panel

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

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 join their panels. A number of mortgage companies now use the Conveyancing Quality Scheme accreditation as the starting point for Panel approval as is the case with Astra Mortgages.

You need to communicate with Royal Bank of Scotland to obtain standard documents. The The Council of Mortgage Lenders Handbook contains an individual inquiry for banks to establish who to contact to obtain standard documents. Royal Bank of Scotland in their Part 2’s state: You will need to disclose your Royal Bank of Scotland solicitors panel reference.