M&S Bank Conveyancing Panel Information

One might ordinarily expect M&S Bank via their Part Two obligations to address this but the Handbook is silent on time frames. Do look at the Terms of M&S Bank’s Conveyancing Panel Appointment that you entered into. For a number of banks these Terms include a clause 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 important to keep M&S Bank updated. 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 M&S Bank 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 M&S Bank and it may well be prudent you to cease to act for the purchaser as well. You can not tell the M&S Bank 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 M&S Bank conveyancing panel status.

There are various requirements you need to follow if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. (a) You must take reasonable steps to verify that there are no discrepancies between the description of the property as valued and the title and other documents which a reasonably competent conveyancer should obtain, and, if there are, you must tell M&S Bank immediately. Second, You should take reasonable steps to verify that the assumptions stated by the valuer about the title (for example, its tenure, easements, boundaries and restrictions on its use) in the valuation and as stated in M&S Bank’s mortgage offer are correct. If they are not, please let M&S Bank know as soon as possible as it will be necessary for M&S Bank to check with the valuer whether the valuation needs to be revised. M&S Bank conveyancing panel solicitors are not expected to assume the role of valuer. M&S Bank are simply trying to ensure that the valuer has valued the property based on correct information. Thirdly, M&S Bank recommend that you should advise the borrower that there may be defects in the property which are not revealed by the inspection carried out by their valuer and there may be omissions or inaccuracies in the report which do not matter to them as a lender but which would matter to the borrower. M&S Bank recommend that, if we send a copy of a valuation report that M&S Bank have obtained, you should also advise the borrower that the borrower should not rely on the report in deciding whether to proceed with the purchase and that he obtains his own more detailed report on the condition and value of the property, based on a fuller inspection such as a homebuyers report or comprehensive survey. If you do not receive a copy of the valuation you can always ask for a copy of one from M&S Bank or the borrower. You still need to comply with the UK Finance Lenders’ Handbook Requirement relating to valuation reports even if you don't receive one directly. Failure to comply not only runs the risk of facing a claim by the lender but also being removed from the M&S Bank conveyancing panel

Given that your firm in is on the M&S Bank conveyancing panel and you are instructed by 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 M&S Bank are to lend, they may require indemnity insurance. In any event,you will need to check M&S Bank’s specific requirements. Notwithstanding whether M&S Bank will lend in such circumstances you still need to advise the borrower (unless you are acting for M&S Bank alone) as to the risks of buying a property with an insolvent or absentee freeholder.

It would be advisable to provide details of the date of removal, information on the reason for removal, date of appeal and any reason given for reinstatement. This should not negatively affect your firm’s application but gives the CQS team a complete picture of what has happened.

You would be advised to contact M&S Bank to obtain standard documents. The CML Handbook has an individual inquiry for lenders to reveal who to contact to obtain standard documents. M&S Bank in their Part 2’s state: You will need to disclose your M&S Bank solicitors panel reference.