Lloyds TSB Scotland Conveyancing Panel Information

The CML Part II requirements of Lloyds TSB Scotland are silent on this. Most mortgage companies address the question of file retention via their Terms and Conditions where they generally provide that for evidential purposes, the firm must keep the file for at least of 6 years from the date of the mortgage. Data imagining is normally suitable compliance with this requirement. Many lenders point out in that it is the practice of some fraudsters to 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 Lloyds TSB Scotland’s interest. To be absolutely sure of Lloyds TSB Scotland requirements in this regard please check the Terms and Conditions of Lloyds TSB Scotland’s conveyancing panel acceptance.

The answer to this question really depends on the reason that your firm has been removed off the Lloyds TSB Scotland conveyancing panel. The top 3 reasons are as follows:

1. lack of transactions
2. the lawyer is a sole practitioner
3. as part of the HSBC panel reduction.

In these three circumstances it is unlikely that you would expected to take any action. Disclosure and other compliance considerations are more likely to be relevant if the reason for removal is due to breaches of lender requirements or allegations of fraud or negligence. Whether the reasoning should trigger a disclosable 'material' breach will depend on the firm and the circumstances around possible failures to comply with the SRA Authorisation Rules, and the SRA will judge each case on its own merits. Factors such as the detriment or risk of detriment to clients, the scale of the issue and overall impact on the firm will need to be considered in deciding whether a failure is 'material'. As the COLP you will need systems to identify patterns of breaches. Even if you don't consider there to be regulatory implications the firms COFA should give some thought to whether she/he needs to take any action as result of being removed from the Lloyds TSB Scotland conveyancing panel.

When a solicitor is acting for both Lloyds TSB Scotland 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 Lloyds TSB Scotland and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Lloyds TSB Scotland 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 Lloyds TSB Scotland conveyancing panel status.

You will be aware of the trend in recent years for lenders such as Lloyds TSB Scotland to take a much more pro-active approach in relation to the management and make up of their conveyancer panels. The knock on effect of this is that it is more likely that there will be a higher number of cases where a conveyancer is not on the Lloyds TSB Scotland panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and Lloyds TSB Scotland have appointed a separate lawyer to act on their behalf where the new CML Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires Lloyds TSB Scotland’s panel solicitor to ‘ ...transfer the mortgage advance directly to the Seller’s conveyancer. The Seller’s conveyancer must be required to hold the mortgage advance on the terms of the required undertaking. The example borrower’s conveyancer’s undertaking letter includes a specific example of the seller’s undertaking’. You should expect to be advised to received the mortgage advance directly from the conveyancing solicitors for Lloyds TSB Scotland. You will no doubt be required to undertake directly to Lloyds TSB Scotland’s solicitors to discharge any charges secured on the property and to send directly to them the executed transfer and any other documents required to enable us to effect registration. Please remember to carefully consider undertakings in accordance with your firm’s protocol and record them in your undertakings logg. Please remember that as well as this breach of this undertaking having regulatory and compliance implications it’s breach could also result in your firm being removed off the Lloyds TSB Scotland conveyancing panel.

CQS accreditation is no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to join their approved list of firms. A number of mortgage companies now use the scheme as the starting point for Panel acceptance as is the case with Astra Mortgages.

You should get in touch with Lloyds TSB Scotland to obtain standard documents. The CML Handbook contains an express question for lenders to establish who to contact to obtain standard documents. Lloyds TSB Scotland in their Part 2’s state: You will need to disclose your Lloyds TSB Scotland solicitors panel reference.