Conveyancing complaints and fraud

The Legal Ombudsman has highlighted the benefits of good practice in handling conveyancing complaints; and the National Fraud Authority outlined a new approach to mortgage fraud
Conveyancing is the second most common type of legal service complained about to the Legal Ombudsman, members of the Conveyancing Association (CA) heard at their meeting last week.

Fifteen percent of the complaints received by the Legal Ombudsman concerned residential property transactions, lower only than family law.

Katie Leslie, senior projects manager for the Legal Ombudsman, was speaking at an All-Members Meeting of the CA in central London last Thursday.

She said: “Were the housing market in better shape we would expect to see conveyancing topping the list. Hidden costs and unclear rights and responsibilities relating to properties – such as the maintenance of footpaths or hedges – have the potential to alienate customers and lead them to seek the help of the Legal Ombudsman.

 

Read More - http://www.mortgagefinancegazette.com/legal/conveyancing-complaints-and-fraud/

Panel selection greatest threat to conveyancing

Solicitors expect the main threat to their industry in the next year to come from lenders’ panel selection decisions, a survey from SearchFlow reveals.

More than half of conveyancing firms (51%) believe the recent controversy over panel management has caused lenders to worry more about fraud, and this will have a potential impact on business levels. But at the same time solicitors report that despite initial fears ABSs have not made an impact yet, with the threat of competition from ABSs (14%) ranked behind a weak property market (22%) and the increasing cost of insurance (15%).

When questioned as to how they plan to adapt to the arrival of ABSs almost half of conveyancers (48%) said they would be making no changes to their business, with 15% saying they would be increasing their marketing spend. Only 12% said they would change their practice areas and just 10% said they would begin to offer fixed fees.

Read more - http://www.mortgageintroducer.com/mortgages/244351/5/Industry_in_depth/Panel_selection_greatest_threat_to_conveyancing.htm

National Property Database Launched in the UK

Today, on July 31st, Experian, UK credit agency, announced the launch of the first ever property database.

It covers all residential properties across the UK (in England, Wales, Scotland and Northern Ireland). The aim of the database is to help banks, insurance companies and other financial institutions get comprehensive information about the financial circumstances of their customers, both new and existing.

With the help of the database, it becomes possible to compare house prices across various towns. For instance, it shows that house prices in London are 40-70% higher than in other regions. Also, flats in London constitute 45% of property stock, whereas in other regions this figure stands at 12%.

Read more - http://www.e1buytoletmortgages.co.uk/news/conveyancing-solicitors-in-uk-cheap-online-legal-property-services/national-property-database-launched-in-the-uk-4733.html

Average property price increases to £161k, Land Registry

Number of properties sold for more than £1m plunges 41 per cent while London house prices continue to rise fastest in UK.

Property prices have increased 0.5 per cent in the month of May, taking average house prices in England and Wales to £161,677, data from Land Registry have revealed.

The region in England and Wales which experienced the highest increase in its average property value over the last 12 months is London, unsurprisingly, with a movement of 7.7 per cent.

London also experienced the greatest monthly rise with an increase of 2.6 per cent.

Yorkshire & the Humber experienced the greatest annual price fall with a decrease of 3.9 per cent. The north east saw the most significant monthly price fall with a decrease of 1.9 per cent.
In addition, the most up-to-date figures available show that during March 2012, the number of completed house sales in England and Wales increased by 25 per cent to 58,609 compared with 46,742 in March 2011.

The number of properties sold in England and Wales for over £1m in March 2012 decreased by 41 per cent to 501 from 845 in March 2011.

Read More - http://www.ftadviser.com/2012/07/02/mortgages/mortgage-data/average-property-price-increases-to-k-land-registry-KZuEZirwxSnyae9RuT3SZI/article.html

CML issues new instructions for conveyancers

CML’s new conveyancing rules will take effect in England and Wales from 2 July.

The Council of Mortgage Lenders has today (12 June) issued a new set of instructions for conveyancers acting for lenders under separate representation conveyancing transactions in England and Wales.
Following extensive consultation and development, the new instructions are designed to apply when a solicitor or licensed conveyancer is acting only for a lender, rather than for both lender and borrower, in house purchase transactions.
The new instructions will form a new part of the CML lenders’ handbook for conveyancers, and will take effect in England and Wales from 2 July.

Read More - http://www.ftadviser.com/2012/06/12/mortgages/mortgage-data/cml-issues-new-instructions-for-conveyancers-AGdZaS5aUJv1WJrzCBFfFM/article.html

House buyers ‘could pay twice’ with HSBC

SOLICITORS have slammed a bank’s decision to prevent mortgage lenders from using their chosen law firm.

HSBC mortgage customers will no longer be able to use a Cumbrian law firm for conveyancing, following changes to the way the bank runs its residential mortgage division.
New house buyers with an HSBC mortgage will now either have to agree to use one of the lender’s selected firms in another part of the country or pay twice to use their own solicitor.
A total of just 43 law firms will sit on HSBC’s panel for the whole of the UK, none of which are in Cumbria.
The Law Society, which represents solicitors, labelled the bank’s decision as absurd and said it limited consumer choice and could lead to delays in the home-buying process.
Sue Pyne, a partner and head of conveyance at solicitors Poole Townsend in Barrow, accused HSBC

Read more - http://www.nwemail.co.uk/news/house-buyers-could-pay-twice-with-hsbc-1.931366?referrerPath=news/

House buyers return in record numbers

Buyer interest in the housing market has recorded its strongest growth in five years.

The number of buyers registering with estate agents grew by 18pc in February, the highest figure since a 23pc rise in February 2007, Hometrack said.

But much of this was an "artificial boost", brought about by first-time buyers trying to beat a stamp duty holiday, the study said.

Despite the "seasonal pick-up", house prices remained flat for the second month in a row, with Greater London the only region to record any increase, a 0.1pc rise.

Estate agents and lenders have reported increased interest from first-time buyers as they rush to complete deals before the two-year stamp duty holiday for this sector of the market ends in March.

The greatest increases in first-time buyer numbers were reported in the South East, where they were up by 28pc, and the South West, which recorded a 22pc rise.

Article source - http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9107765/House-buyers-return-in-record-numbers.html

SLC launches consultation for its lender panel solution

Following an initial preview of its lender panel proposition - SLC Quality Assured - back in November 2011, the Society of Licensed Conveyancers (SLC) has launched a consultation process.
Licensed conveyancers are invited to provide feedback on the solution currently proposed, so they can help shape the scheme, before it is launched later this year.

The SLC is launching an online survey among the conveyancing community this week, which will be distributed via the Council of Licensed Conveyancers (CLC). The survey will ask licensed conveyancers to submit their views on a number of aspects of the new SLC Quality Assured scheme – from proposed costings to the sharing of information and their desire to be part of the scheme.

Feedback

Feedback obtained from the survey will then be collated and presented back to the profession at a series of four regional meetings, which will be held across the country in March.

At each of these sessions, licensed conveyancers will be given an opportunity to express their views on the findings and to voice any additional concerns, ask questions and make suggestions.

The consultation process, which is due to be complete at the beginning of April, will allow the SLC and the CLC to refine what will become the final version of the lender panel solution, before taking it to lenders in the spring.

Read more - http://www.mortgagefinancegazette.com/legal/slc-launches-consultation-for-its-lender-panel-solution/

House prices edge up in January as first time buyers increase

House sales in the West Midlands edged up during January as an increased number of first time buyers looked to beat the stamp duty holiday, according to the Royal Institute of Chartered Surveyors .

Some 35 per cent more surveyors across the region reported rises rather than falls in newly agreed sales since the beginning of the year, according to the latest RICS UK Housing Market survey.

From March 24, first time buyers will no longer be exempt from stamp duty on properties under £250,000 and some surveyors note this has produced an increase in activity at the lower end of the market.

In light of this, respondents in the West Midlands were cautiously optimistic about prospects in the near term, as a net balance of six per cent of surveyors predicted transaction levels to pick up over the coming three months.

This represents the strongest reading since August 2010.


Read More http://www.birminghampost.net/birmingham-business/birmingham-business-news/other-uk-business/2012/02/14/house-prices-edge-up-in-january-as-first-time-buyers-increase-65233-30328296/#ixzz1mMz033vd

Liverpool lawyers warn: tax relief to expire for first time buyers

Property solicitors are warning that first time buyers will no longer be able to take advantage of stamp duty land tax relief from next month (March).

Leading conveyancing lawyers at Merseyside firm Maxwell Hodge are advising that any transaction with an effective completion date of 25 March 2012 or later cannot benefit from First Time Buyer SDLT relief, irrespective of the date of any contract or agreement.

Maxwell Hodge’s residential property and conveyancing specialist Daphne Bridson says: “Time is running out for first time buyers to take advantange of stamp duty land tax relief, which can make a real difference for people trying to get their first step on the property ladder.”

Read More - http://www.clickliverpool.com/clocked/celeb-stories/1215196-tax-relief-to-expire-for-first-time-buyers.html

Conveyancers face a rocky ride

Lenders’ panels lie behind one of the many challenges conveyancers will have to tackle in a year that looks like it will be the most demanding in a long time. And technology is another issue that could make or break solicitor firms.

It is difficult to believe there has ever been a more challenging time for property lawyers engaged in conveyancing. The market is operating at volumes that are less than half the accepted norm, the provision of the Legal Services Act - the so-called Tesco’s Law - is now a reality and mortgage lenders are adopting various ways of more closely managing the panels of conveyancers that they will allow to act for them.

Read More - http://www.mortgagestrategy.co.uk/lendingzone/conveyancers-face-a-rocky-ride/1045255.article

Property sales fall to lowest level for a year

But an unexpected surge in interest from potential homebuyers in December bodes well for the house market this year, estate agents said.
The typical number of house hunters registered per branch in December was 294, 32 more than the average figure for November, with viewings continuing right up until the Christmas break, the National Association of Estate Agents (NAEA) found.

The percentage of first-time buyers also rose to 21pc, continuing the increase since this section of the market hit its lowest proportion in nearly three years last autumn, although first-time buyers made up a quarter of the market during the same period last year.

Read More - http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9024366/Property-sales-fall-to-lowest-level-for-a-year.html

Pity the poor conveyancer

Dwindling fees, higher insurance premiums, a flat property market - but at least the public like their high street conveyancer.

The legal element of buying a house is regarded as a necessary evil, the part that always slows the transaction down. This isn't necessarily true, of course. But conveyancing is proving to be just as much of a pain to the legal profession as it can be to the public.

Back in the 1960s conveyancing accounted for around half of the profession's income; now it is probably less than 10%, even though most legal practices in England and Wales register at least one dealing at the Land Registry each year. The recession is not the only thing to blame. Lawyers have not been slow to undercut each other and drive down fees, especially with a growing number of volume conveyancing operations that are able to process straightforward transactions in a systemised, low-cost manner.

Article source - http://www.guardian.co.uk/law/2012/jan/19/conveyancers-struggle-to-survive?newsfeed=true

Number of CQS firms reaches 1,000

The Law Society has awarded Conveyancing Quality Scheme (CQS) accreditation to the 1,000th firm to enter the scheme.
Less than a year after applications opened, nine-partner Coventry firm Penmans today became the 1,000th accredited CQS firm, bringing the total number of law firm branches with the CQS mark in England and Wales to 1,548. Applications are outstanding from a further 579 firms.
Law Society president John Wotton said: ‘Reaching 1,000 in less than a year is a milestone that far exceeds our expectations, but CQS is not just about numbers. It is about setting the bar for conveyancing, rebuilding confidence among lenders and making it easier for homebuyers to identify genuine quality when buying or selling a property.
‘Recent developments elsewhere in the conveyancing market show that the Law Society is leading the way and that others are now following.’
The 1,000th CQS accreditation coincides with a YouGov survey, conducted on behalf of insurer First Title, which shows that consumers are generally happy with the service they receive from conveyancing solicitors, but were cautious about buying the service from big brands.
Wotton said: ‘Consumers clearly attach value to the services that a smaller firm such as Penmans provides.’

Article source - http://www.lawgazette.co.uk/news/number-cqs-firms-reaches-1000

2011 property sales will be lowest in 40 years

This year is set to register the lowest level of property sales in 40 years, according to Hometrack.

In its latest national housing survey, the firm says it forecasts 840,000 sales for 2011 and expects this trend of low transaction levels to continue into 2012.
The analysis shows that house prices fell slightly in November, by 0.2% compared to October, while the number of new buyers registering with estate agents decreased by 2.2%. Hometrack says demand from new buyers is likely to decline further in the run up to Christmas.
There was a 4.6% rise in the number of sales agreed, but the number of property listings fell by 0.8%, and the average time on the market rose slightly from 9.8 weeks to 9.9 weeks.
Hometrack says that low sales levels and increasing realism on pricing among sellers looking to move before Christmas are supporting headline indicators of housing market activity.

http://www.expertconveyancing.com

Read more - http://www.mortgagestrategy.co.uk/housing-market/2011-property-sales-will-be-lowest-in-40-years/1042236.article

Licensed conveyancers to launch lender’s panel solution

The Society of Licensed Conveyancers (SLC), the trade body representing the conveyancing profession, has unveiled its lender’s panel proposition.

SLC Quality Assured aims to reduce the risk of mortgage fraud for lenders who opt to use SLC's panel members, while allowing SLC member firms access to all lenders’ panels.

With mortgage fraud high on the agenda for lenders due to unprecedented losses, many are undertaking new measures to restrict those conveyancers accepted onto their panels. SLC Quality Assured is designed to help the licensed conveyancing community by ensuring they are part of any restricted panels.

As part of this new solution, the Council for Licensed Conveyancers (CLC) - the statutory regulator - will take on the role of gatekeeper, controlling panel qualification and providing lenders with the added assurance that all SLC panel firms are fully regulated and bound by a rigorous set of criteria.

Licensed conveyancers, licensed by the CLC, will be automatically ‘passported’ onto SLC Quality Assured and can apply to become panel members, which will activate the certification process.

Once activated, panel firms must register every new transaction with the SLC system, and information on the transaction’s progress will be made available to the lender at critical points throughout the process. This information will also be made available to the regulator.

Read more - http://www.mortgagefinancegazette.com/legal/new-lender%E2%80%99s-panel-solution-for-licensed-conveyancers/

Conveyancing community enjoys first dedicated conference

Over 150 licensed conveyancers and members of the legal profession gathered last week at the first, of what is expected to become an annual conference for the industry, organised by the Society of Licensed Conveyancers (SLC).

The topic of the day was very much focused on how licensed conveyancers, particularly independents and smaller firms, can get access to lenders’ panels, with a large number of attendees highlighting this as a growing concern.

In response to this, the afternoon session was focused on the SLC’s new panel proposition: SLC Quality Assured. Attendees were the first to gain access to an exclusive preview of the SLC’s new solution, which aims to ultimately ensure that all SLC members are on all lenders’ panels. Members of the SLC have now been invited to provide their feedback on the solution, before it is further refined and launched to the market in 2012.

Read more - http://www.mortgagefinancegazette.com/legal/conveyancing-community-enjoy-first-dedicated-conference/

Property conveyancing: Draft EU legislation may penalise buy-to-let landlords

Buy-to-let landlords may be penalised by new draft European Union (EU) legislation for residential mortgages.

While the new rules are designed to prevent irresponsible lending by certain mortgage companies, the uniform laws could severely damage the buy-to-let market.

Speaking about the proposals, Conservative MEP Vicky Ford, stated: "[The EU] draft rules are deeply prescriptive, fail to [recognise] differences in different countries and could result in huge extra costs for house owners."

According to Ms Ford, "unless we are exempted from EU rules, lenders will not be able to count rental income when making mortgage offers". This will prevent those in retirement or using private savings from entering the buy-to-let market.

With the cost of buying a property still being out of reach for many prospective property owners, the buy-to-let sector has become increasingly lucrative and vital in the UK as more and more people are forced to rent.
Read more - http://www.co-operative.coop/legalservices/latest-news/Conveyancing/property-conveyancing-draft-eu-legislation-may-penalise-buy-to-let-landlords/?ArticleId=801227462

2011 property sales will be lowest in 40 years

This year is set to register the lowest level of property sales in 40 years, according to Hometrack.

In its latest national housing survey, the firm says it forecasts 840,000 sales for 2011 and expects this trend of low transaction levels to continue into 2012.
The analysis shows that house prices fell slightly in November, by 0.2% compared to October, while the number of new buyers registering with estate agents decreased by 2.2%. Hometrack says demand from new buyers is likely to decline further in the run up to Christmas.
There was a 4.6% rise in the number of sales agreed, but the number of property listings fell by 0.8%, and the average time on the market rose slightly from 9.8 weeks to 9.9 weeks.
Hometrack says that low sales levels and increasing realism on pricing among sellers looking to move before Christmas are supporting headline indicators of housing market activity.

Read more - http://www.mortgagestrategy.co.uk/housing-market/2011-property-sales-will-be-lowest-in-40-years/1042236.article

Licensed conveyancers to launch lender’s panel solution

The Society of Licensed Conveyancers (SLC), the trade body representing the conveyancing profession, has unveiled its lender’s panel proposition.

SLC Quality Assured aims to reduce the risk of mortgage fraud for lenders who opt to use SLC's panel members, while allowing SLC member firms access to all lenders’ panels.

With mortgage fraud high on the agenda for lenders due to unprecedented losses, many are undertaking new measures to restrict those conveyancers accepted onto their panels. SLC Quality Assured is designed to help the licensed conveyancing community by ensuring they are part of any restricted panels.

As part of this new solution, the Council for Licensed Conveyancers (CLC) - the statutory regulator - will take on the role of gatekeeper, controlling panel qualification and providing lenders with the added assurance that all SLC panel firms are fully regulated and bound by a rigorous set of criteria.

Licensed conveyancers, licensed by the CLC, will be automatically ‘passported’ onto SLC Quality Assured and can apply to become panel members, which will activate the certification process.

Once activated, panel firms must register every new transaction with the SLC system, and information on the transaction’s progress will be made available to the lender at critical points throughout the process. This information will also be made available to the regulator.

Read more - http://www.mortgagefinancegazette.com/legal/new-lender%E2%80%99s-panel-solution-for-licensed-conveyancers/