RBS - Virgin One Conveyancing Panel Information

As is the case with the Law Society the Council of Licensed Conveyancers has initiated dialogue with banks and their representative bodies to see whether and how the risks that lenders wish to mitigate could be addressed through the regulatory framework rather than via ad hoc arrangements that can differ from lender to lender. It is likely that that the CLC have been in touch with lenders such as RBS - Virgin One as well as the BSA.

We can't comment specifically on RBS - Virgin One. 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 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.

Please tread carefully here as what you are intending 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. An increasing amount of lenders are making 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 conveyancing firm. You also need to make the costs implications and potential for delay very clear to your client.

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

In the circumstances please explain on the application what steps you have taken to discover the reasons behind cancellation of your RBS - Virgin One panel status. In particular please provide details if you have received communications from the lender. E.G. before termination of your panel membership did you receive any letters or calls from the lender putting you on notice?

You should get in touch with RBS - Virgin One to obtain standard documents. The The Council of Mortgage Lenders Handbook has an individual section for banks to set out who to contact to obtain standard documents. RBS - Virgin One in their Part 2’s state: Please remember to disclose your RBS - Virgin One conveyancing panel number.