Nedbank Conveyancing Panel Information

The Council of Mortgage Lenders, together with Nedbank and other members developed a standard set of requirements where a solicitor is representing a lender such as Nedbank alone in a residential conveyancing matter. These obligations are contained at Part 3 of the UK Finance Lenders’ Handbook and are to be read together with Sections One and Two. The CML have published an example requirements letter to the borrower’s conveyancer for adaptation by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel solicitor.

The Scottish Law Society has suggested that solicitors should check their lender panel status prior to accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the Nedbank conveyancing panel. The recommendation arises from the practice of a number of mortgage lenders who remove solicitors from their panels without prior notice as part of their panel management system, which can lead to some solicitors discovering this only once instructed. This is sensible advice as a client finding out midway through a transaction that their lawyer is not on the approved lender panel is very frustrating and can lead to complaints. Many online consumer forums contain posts where someone is complaining about finding that their lawyer is not on a lender conveyancing panel. Such forums include mumsnet.com

You will be aware of the trend in recent years for lenders such as Nedbank 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 Nedbank panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and Nedbank 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 Nedbank’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 Nedbank. You will no doubt be required to undertake directly to Nedbank’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 Nedbank conveyancing panel.

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

In the circumstances please clarify on the form what action you have taken to find out the reasons behind cancellation of your Nedbank panel status. In particular please provide details if you have received communications from the lender. E.G. before cessation of your panel membership did you receive any letters or calls from the lender informing you as to why they reached this decision?

You need to get in touch with Nedbank to obtain standard documents. The The Council of Mortgage Lenders Handbook has an explicit question for lenders to cite who to contact to obtain standard documents. Nedbank in their Part 2’s state: It helps to disclose your Nedbank conveyancing panel reference.