NRAM Ltd Conveyancing Panel Information

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

There are various requirements are to followed 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 NRAM Ltd 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 NRAM Ltd’s mortgage offer are correct. If they are not, please let NRAM Ltd know as soon as possible as it will be necessary for NRAM Ltd to check with the valuer whether the valuation needs to be revised. NRAM Ltd conveyancing panel solicitors are not expected to assume the role of valuer. NRAM Ltd are simply trying to ensure that the valuer has valued the property based on correct information. (c) NRAM Ltd 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. NRAM Ltd recommend that, if we send a copy of a valuation report that NRAM Ltd 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 NRAM Ltd 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 NRAM Ltd conveyancing panel

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

CQS accreditation gives no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to remain on their approved list of firms. Some Lenders now use CQS as the starting point for Panel membership such as Santander.

You should get in touch with NRAM Ltd to obtain standard documents. The The Council of Mortgage Lenders Handbook includes an explicit section for lenders to establish who to contact to obtain standard documents. NRAM Ltd in their Part 2’s state: Don’t forget to quote the firm’s NRAM Ltd solicitors panel number.