Transfer of Equity Conveyancing - RBS (One Account) Panel Requirements
The content on this web-page is designed to help E&W conveyancing practitioners who conduct Transfer of Equity conveyancing who are on the RBS (One Account) solicitor panel. It is not a substitute for checking RBS (One Account) Part-2 instructions
As a conveyancer you must approve the transfer (which should be in the Land Registry's standard form) and, if RBS (One Account) require, the deed of covenant on their behalf. See below to see if RBS (One Account) have standard forms of transfer and deed of covenant
Does RBS (One Account) have a standard form of transfer of equity /deed of covenant?
No. We require a reconstitution of the security in Transfer of Equity cases.
When drafting or approving a transfer of equity, you should bear in mind that:
- although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage;
- the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check (see below for where to obtain this);
- there should be no statement that all interest has been paid to date.
If different from 1.11 of RBS (One Account) UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:
As detailed above in 1.11a.
As a conveyancer on the RBS (One Account) panel you must ensure that every person who will be a borrower after the transfer covenants with RBS (One Account) to pay the money secured by the mortgage, except in the case of:
- an original party to the mortgage (unless the mortgage conditions are being varied); or
- a person who has previously covenanted to that effect.
Any such covenant will either be in the transfer or in a separate deed of covenant. In a transfer, the wording of the covenant should be as follows, or as close as circumstances permit: "The new borrower agrees to pay the lender all the money due under the mortgage and will keep to all the terms of the mortgage." If it is in the transfer, you must place a certified copy of the transfer with the deeds (unless RBS (One Account) tell you not to in their CML part 2 requirements, please see below).
Does RBS (One Account) need to be sent the transfer of equity?
Not applicable. See 16.3.1 above.
If RBS (One Account) have agreed to release a borrower or a guarantor and their standard transfer form (if any) includes no appropriate clause, you must add a simple form of release. The release clause should be as follows, or as close as circumstances permit: "The lender releases ... from his/her/their obligations under the mortgage." You should check whether a guarantor who is to be released was a party to the mortgage or to a separate guarantee.
You must obtain the consent of every guarantor of whom you are aware to the release of a borrower or, as the case may be, any other guarantor.
You must only submit the transfer to RBS (One Account) for execution if it releases a party. All other parties must execute the transfer before it is sent to RBS (One Account) . See RBS (One Account) part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives RBS (One Account) approved form of attestation clause - see below:
If different from 1.11, RBS (One Account) contact point for obtaining execution of transfer equity:
Not applicable. See 16.3.1 above.
What form of attestation clause does RBS (One Account) use?
Signed and delivered as a Deed for and behalf of the Bank by a duly authorised signatory.