Precise Mortgages Conveyancing Panel Information

During 2013, 27 sections of the UK Finance Lenders’ Handbook P2 were changed by Precise Mortgages. Some changes are more important than others but as a firm on the Precise Mortgages conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 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: CML requirements are not guidelines; they are the lender client’s instructions.

When a solicitor is acting for both Precise Mortgages 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 Precise Mortgages and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Precise Mortgages 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 Precise Mortgages conveyancing panel status.

Precise Mortgages approved solicitors have to comply with 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 Precise Mortgages require, the deed of covenant on their behalf. You will need to check Precise Mortgages CML Part 2 conditions to see if Precise Mortgages 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 Precise Mortgages conveyancing panel

With lenders and property lawyers working so closely with one another it is surprising that there has not been greater demand for the introduction of a bit of transparency regarding not just the figures for the Precise Mortgages conveyancing panel but for all lender panels

In this situation please clarify on the form what steps you have taken to find out the reasons behind cancellation of your Precise Mortgages 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 contact Precise Mortgages to obtain standard documents. The CML Handbook has an individual question for banks to reveal who to contact to obtain standard documents. Precise Mortgages in their Part 2’s state: Always remember to quote your Precise Mortgages conveyancing panel number.