BSA Designator: Newcastle Building Society
Jurisdiction: England and Wales
Newcastle Building Society Solicitor Panel Information:
What are the Newcastle Building Society conveyancing panel criteria?
Unlike the CML the Building Society Mortgage Instructions deal with this. Section A.12 states ‘In order to act on our behalf your firm or company must be a member of our conveyancing panel provided we are a society that operates one – see specific requirements for details of our arrangements.
The Special Requirements state:
The Society outsources management of its conveyancing panel to Legal Marketing Services Limited (“LMS”).
Firms may apply for inclusion to the Society’s conveyancing panel by visiting www.lms.com/lenderpanels
You must also comply with the terms and conditions of your Newcastle Building Society solicitor panel appointment.
Is it the case that the Law Society has recommended that firms check their status on the
Newcastle Building Society
The Law Society of Scotland 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
Newcastle Building Society
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
Theoretically Newcastle Building Society could request or audit my files as I am on the Newcastle Building Society conveyancing panel. Are there any confidentiality issues that I need to consider first?
We can't comment specifically on Newcastle Building Society. 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 borrower 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
Check with your Compliance Officer, but a firm should not send the complete conveyancing file without the borrower client’s express consent – and if
is in dispute 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 valid? Please click here for more information about that case.
I recently attended a seminar arranged via my PI broker where it was mentioned that solicitors are being sued for non-compliance with BSA Mortgage Instructions. I am on the Newcastle Building Society conveyancing panel. Can you tell me how many Specific Requirement changes took place by Newcastle Building Society during 2013?
During this period 17 sections of the BSA Mortgage Instructions were changed by Newcastle Building Society. Some changes are more important than others but as a firm on the Newcastle Building Society conveyancing panel you are of course obliged to comply with individual lender requirements. Locktons have recently pointed out in an article that non-compliance with lender requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.
Remember: BSA requirements are not guidelines; they are the lender client’s instructions.
My firm is on the Newcastle Building Society conveyancing panel. I am
dealing with Newcastle Building Society mortgage on a purchase. My
borrower client is asking not to disclose an issue to Newcastle Building Society. What do I do in this conflict situation?
When a solicitor is acting for both Newcastle Building Society 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.
your situation, if the purchaser will not consent
to the information being passed on to the lender, the solicitor must
cease to act for Newcastle Building Society and it may well be
prudent for you to cease to act for the purchaser as well. You must not
inform Newcastle Building Society of 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 Newcastle Building Society conveyancing panel status.
I rarely receive a copy of a valuation from a lender these days. Does the extent of my Newcastle Building Society conveyancing panel obligations extend to checking the valuation details where I am acting on a purchase with Newcastle Building Society as the Mortgagee?
There are various requirements you need to follow if you wish to comply with your lender client’s instructions as set out in the BSA Mortgage Instructions. (I) You must take reasonable steps to verify that there are no discrepancies between the description of the property as compared to their old address.
Do publish figures exists regarding the Newcastle Building Society conveyancing panel size and the number of conveyancing firms removed from their panel each year?
With mortgage companies and property lawyers working so closely with one another it is surprising that there has not been much call for the introduction of a bit of transparency regarding not just the figures for the Newcastle Building Society conveyancing panel but for all bank panel listings
What lender panels do you receive the most questions about?
BSA lenders do not come within the top 20 lenders in terms of
frequency of questions. The most popular lender panels in terms of
questions are as follows: