Barclays plc Conveyancing Panel Information

Some might be tempted to steer clients away from those who impose the greatest restrictions on panel membership. John Scott, secretary to the Society’s Property Law (formerly Conveyancing) Committee, advises: “The difficulty there is that you are effectively giving financial advice to clients. It might be that the best choice for them is from one of these lenders and it’s difficult to see how you could give advice not to choose that product without putting yourself in a conflict position.”

The extent and frequency of changes varies from lender to lender.

In 2013, 24 section changes were made to Barclays plc Part 2 requirements, which are of course part of the instructions of to the Barclays plc conveyancing panel.

Barclays plc make no specific obligation to carry out any of the searches listed. The UK Finance Lenders’ Handbook simply states that ‘you must ensure that any other searches which may be appropriate to the particular property, taking into account its locality and other features are carried out’.

Please note that most ‘less usual searches’ are not optional as far as Barclays plc are concerned if they are ‘appropriate’. Most lenders will not require environmental searches (you should Check Part 2 of UK Finance Lenders’ Handbook to be sure), but you are obliged to explain risks and availability to the client.

Ground stability, Plansearch, flood searches as well as the searches are optional--but only to the extent that you have allowed the borrower client to make an informed choice. Regardless of whether there is a mortgage, if you have not advised the client that these (and other) searches are available and the risks they cover, then you will be liable if the client suffers loss through not conducting one. Does your ROT and Ts and Cs cover this situation?

A leading search provider lists over 65 conveyancing searches. Do you know what they are and when they may be relevant? If you are unsure as to which searches are appropriate based on location, call your search provider or call one of the leading search companies.

The CML Part II requirements of Barclays plc are silent on this issue. Most mortgage companies deal with the issue of file retention via their Terms and Conditions where they generally provide that, for evidential purposes, the firm must keep the file for a minimum six years from the date of the mortgage. Data imagining is normally suitable compliance with this requirement. Many lenders point out in that some fraudsters demand the conveyancing file on completion in order to destroy evidence that may later be used against them. It is therefore important to retain these documents to protect Barclays plc’s interest. To be absolutely sure of Barclays plc requirements in this regard, please check the Terms and Conditions of Barclays plc’s conveyancing panel acceptance.

Please tread carefully here. What you are suggesting may not be acceptable to the mortgage company. II is possible that you (as a non-panel firm) or the mortgage applicant are not entitled instruct a panel firm of your choice. Many lenders make 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.