Conveyancing News
JULY 2010
Registers of Scotland Fee Review
Registers of Scotland are conducting a fee review as part of a wider financial sustainability review. This is against the background of substantial operating losses sustained by them during the last two financial years, following a significant reduction in the volume of conveyancing transactions and a resultant sharp drop in income from registration fees.
The fee review includes proposals to double the existing fee for registering standard securities to £60, to charge an additional £400 for registering constitutive deeds creating real burdens and to charge £50 to use the pre-registration enquiry service.
Written responses are invited by 10 September 2010. More details are available on Registers of Scotland’s website:-
http://www.ros.gov.uk/feereview2010/index.html
June 2010
Lloyds Banking Group Conveyancing Panel Changes
Lloyds Banking Group has consulted the Society in connection with planned changes to the membership criteria of its Scottish conveyancing panel, which will take effect on 1 September 2010. From that date these criteria will include 1) the compulsory use of ARTL in all appropriate transactions; 2) use of direct debit for payment of all registration fees; and 3) panel members’ authorisation of Group member banks to obtain data from the Registers on the frequency of use of ARTL by individual firms and the overall quality of registration applications.
The Group advises that style standard securities for all its mortgage brands are available on the ARTL section of the Registers’ website and that it is amending the CML Handbook to confirm ARTL as its preferred method of registration. The Group has confirmed that it is aware of the various circumstances where ARTL cannot be used.
Payment by direct debit
The Keeper has decided to accept payment of registration fees only by Direct Debit with effect from April i.e. no cheques will be accepted.
Acknowledgement of a "packaged" application
The Conveyancing Committee wishes to publicise the Keeper’s current practice of sending an acknowledgement of a “packaged” application for registration (i.e. more than one deed to be registered) only to the “lead” agent (usually the one acting for the purchaser). This practice will be revised later this year so that all applicants will receive an electronic acknowledgment, but in the meantime agents acting separately for a lender and other parties will need to make other arrangements (e.g. obtain an undertaking from purchaser’s agent to send copy of acknowledgement when received).
Is there any restriction on direct debits for Registers of Scotland etc from a client bank account?
Variable direct debit is a robust and secure means of payment, but the Society has issued guidance that the principal client bank account should never be subject to variable direct debit. A separate account should be opened from which to operate such payments. This will reduce the risk of an error causing a shortage on the client bank account and assist in the ease of reconciling the account.
2009
HSBC Reports on Title
The Conveyancing Committee has successfully made representations to HSBC regarding the standard of care required from solicitors who act for the bank in security work. HSBC, who do not subscribe to the CML handbook, had stipulated in its pro forma Report on Title that solicitors confirm that they have investigated the title "in accordance with current best conveyancing practice". This implied a standard of service to a client considerably higher than the normal duty of care and accordingly raised serious risk management issues for the profession. The Committee proposed an alternative undertaking as follows:-
“We have investigated the title to the property in the manner which current conveyancing practice dictates that a reasonably competent Solicitor would regard as necessary to enable him/her to give this Report”.
After due consideration the Bank confirmed that it was agreeable to the revised wording, which would be incorporated in its loan instructions with immediate effect.
Britannia
Negotiations are continuing with Co-operative Financial Services on the level of protection available to commercial clients from fraud involving sole practitioners. In the meantime CFS have agreed that sole practitioners will remain on Britannia’s conveyancing panel.
Thomas Park, Petitioner
The Conveyancing Committee has come to the view that this recent decision reinforces the legal position that delivery is required before a missive is binding. The Committee has also confirmed the Society’s existing guidance on electronic communications. This guidance provides that there is a duty on a solicitor to follow up a fax or e-mail of a contractual document with the original as soon as possible. Furthermore if the solicitor is instructed by the client not to send the hard copy that fact must be communicated to the other solicitor immediately and the solicitor must withdraw from acting if the client cannot be persuaded to withdraw such instructions. The Committee recommends that the Society press for legislation to enable electronic missives to be passed as soon as possible.
If you would like to contact the Society's Conveyancing Committee please email the Secretary, John Scott .
