Paragon Residential Conveyancing Panel Information

Criteria differ from lender to lender. We do not hold specific requirements relating to the questions raised as part of the application to be on the Paragon Residential conveyancing panel. Typically lenders need to have full knowledge of a firm including (but not limited to):

List of all those staff who work within the conveyancing team

List of all those who can sign off the Certificate Of Title

Details of any accreditation e.g. Lexcel or

List of fee-earners who are foreign qualified

Whether the firm has ever knowingly accepted instructions on transactions involving Sale and Rent Back, Back to Back, Exchange and Delayed Completion and Lease Option, Below Market Value.

List of all solicitors within firm

List of all those who fund the firm, including non-lawyers if applicable

Structure of firm and, where applicable, its group

Number of lender conveyancing panels the firm is currently on

Whether the firm has ever accepted instructions in respect of property clubs and investment schemes

In operating open conveyancing panels, lenders such as Paragon Residential face a number of fraud and negligence risks. While there is no authoritative source of data on lender exposure to solicitor–led mortgage fraud, anecdotal evidence from lenders indicates exposure on individual cases are often in the millions of pounds. The National Fraud Authority estimates that £1bn per year is lost in mortgage -related frauds in total, which is seen as a conservative estimate.

These risks are exacerbated by the lack of a comprehensive set of data on all conveyancing firms (which, for the avoidance of doubt, would include solicitors and conveyancers across the UK) which is in a readily accessible format. Currently, lenders vet the suitability of their panel firms against a variety of disparate, incomplete and potentially inaccurate sets of information. One top 5 lender pointed out to us that it is almost impossible to track individual fraudsters who move from firm to firm, especially where they are no longer registered or no longer hold a valid practicing certificate.

Paragon Residential and other lenders are in varying stages of reviewing their approach to vetting firms on their conveyancing panels, to ensure their ongoing exposure to unsuitable firms is reduced. There is also regulatory impetus on lenders to ensure that they have satisfactory oversight of their third party panels, including a due-diligence process.

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 Paragon Residential immediately. (b) 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 Paragon Residential’s mortgage offer are correct. If they are not, please let Paragon Residential know as soon as possible as it will be necessary for Paragon Residential to check with the valuer whether the valuation needs to be revised. Paragon Residential conveyancing panel solicitors are not expected to assume the role of valuer. Paragon Residential are simply trying to ensure that the valuer has valued the property based on correct information. (c) Paragon Residential 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. Paragon Residential recommend that, if we send a copy of a valuation report that Paragon Residential 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 survey or structural survey. If you do not receive a copy of the valuation you can always ask for a copy of one from Paragon Residential 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 Paragon Residential conveyancing panel

Paragon Residential approved solicitors are bound by the Part II instructions relating to Transfer of Equity. These are set out in Section 16.3. First, your firm must approve the form of Transfer of Equity (which should be in the Land Registry's standard form) and, if Paragon Residential require, the deed of covenant on their behalf. You will need to check Paragon Residential CML Part 2 conditions to see if Paragon Residential have standard forms of transfer and deed of covenant. Please note that this requirement can change from one transaction to another so do check! Second,When drafting or approving a transfer, you should bear in mind that: although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage; the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check ; there should be no statement that all interest has been paid to date. Further obligations are set out in the UK Finance Lenders’ Handbook which have to be followed by all firms on the Paragon Residential conveyancing panel

We would recommend that you 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 adversely impact your application but gives the Law Society a complete picture of what has gone on.

You need to get in touch with Paragon Residential to obtain standard documents. The CML Handbook includes an individual section for lenders to enumerate who to contact to obtain standard documents. Paragon Residential in their Part 2’s state: It helps to disclose your Paragon Residential solicitors panel reference.