Topaz Finance Conveyancing Panel Information

Lexsure has not been advised of any intention on the part of the CML to develop such a tool.

We can't comment specifically on Topaz Finance. 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 instructions etc.

Check with your COLP but a firm should not send the complete conveyancing file without the buyer client’s express consent – and if he is in arrears with the lender she 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 are valid. Please click here for more information about that case.

There are many reports available, five of which are as follows:

• Disclosure/Notification to Lender analysis indicating frequency and nature of disclosures - to include benchmarking analysis against aggregate data
• Evidence of undertaking logs
• Number of conveyancing cases by lender
• The percentage of the firm’s business which is conveyancing (broken down into sale/purchase and remortgage)
• Average mortgage advance

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

Your insurance brokers are your best port of call to address this question. The chances are that on the basis that you have not been removed for fraud or negligence reasons that there will be little or no impact. The main reason why a firm would be removed off of a lender panel is due to low volume of conveyancing cases although there may be a number of criteria for Topaz Finance solicitor panel membership. Please remember that it is always important that you complete your insurance forms accurately.

You should communicate with Topaz Finance to obtain standard documents. The The Council of Mortgage Lenders Handbook includes an explicit question for lenders to set out who to contact to obtain standard documents. Topaz Finance in their Part 2’s state: It helps to quote the firm’s Topaz Finance conveyancing panel reference.