Hinckley and Rugby Conveyancing Panel Information

We can't comment specifically on Hinckley and Rugby. 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 she is in arrears with the lender he 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.

You might expect Hinckley and Rugby via their Part 2 conditions to address this but the Handbook is silent on deadlines to send deeds. You need to look at the Terms of Hinckley and Rugby’s Conveyancing Panel Appointment that you previously signed. For a number of banks these Terms contain a provision such as: ‘To keep us informed of the reasons for any delay in your being able to send the title deeds and documents we require to us within 3 months of completion or evidence of proof of registration within that period. (We will send reminders if the deeds have not been received but will not acknowledge receipt of deeds’ It is imperative to keep Hinckley and Rugby informed. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

When a solicitor is acting for both Hinckley and Rugby and borrower there is potential for conflicts to arise. You owe duties to both clients. All information received by you from your client is confidential and cannot be disclosed without the client’s consent. In the situation you find yourself in if the purchaser will not consent to the information being passed on to the lender the solicitor must cease to act for the Hinckley and Rugby and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Hinckley and Rugby the reason for termination of the retainer over and above the fact that a conflict has arisen. The fact that you can no longer act should alert even the most somnambulistic of lenders that something is wrong with the borrower and/or purchase. The fact that you have disinstructed yourself should not affect your Hinckley and Rugby conveyancing panel status.

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

Your insurance brokers are your best port of call to address this question. The chances are that on the basis that you have not been removed for fraud or negligence reasons that there will be little or no impact. The main reason why a firm would be removed off of a lender panel is due to low volume of conveyancing cases although there may be a number of criteria for Hinckley and Rugby solicitor panel membership. Please remember that it is always important that you complete your insurance forms accurately.

You need to get in touch with Hinckley and Rugby to obtain standard documents. The CML Handbook has an explicit inquiry for banks to set out who to contact to obtain standard documents. Hinckley and Rugby in their Part 2’s state: Please remember to disclose your Hinckley and Rugby solicitors panel reference.