ADVICE: TCF & conveyancing

It’s time to reconsider conveyancing choices in light of TCF, writes Steve Maine, managing director of OpenConvey.

The business of conveyancing might seem a million miles away from the compliance regime which we have all had to come to terms with over the last two to three years and yet as the full reach of TCF (Treating Customers Fairly) becomes apparent, it is clear that apart from the sales process, any activity which involving the client where the instigator is an approved person is subject to TCF.

Of course, if the client chooses to use his own legal firm then there is no problem. So where are the pitfalls in recommending a solicitor or conveyancer? Naturally, we are all aware that conveyancing can be one of the most contentious areas of the house buying process and it is no surprise that as far as TCF is concerned, the intermediary, as the client’s representative, has responsibility for the viability of any professional relationship to which he introduces a client and regardless of the fact that he is not providing the specific service, it is implicit that the buck stops with the adviser if something goes wrong.

Being in control of all the processes in the house purchase or selling cycle is not possible, but by being selective and exercising good judgement with any outsourced service, intermediaries can safeguard their clients and themselves. Choosing the right conveyancing partner is not difficult but now requires a greater degree of oversight than it has done in the past.

So what are the major points to tick off when choosing the right conveyancing solution?

&ltb&gtPartnership or sole practitioner&lt/b&gt
Effectively, this is now not so much a choice, as lenders like the Co-op have taken all sole practitioners off their panel, with other lenders likely to follow suit. Choosing a sole practitioner, no matter how able, could mean that your client has to pay not only for his solicitor but also for the lender’s appointed conveyancer.

&ltb&gtAccurate quotations&lt/b&gt
Time is of the essence. How long does it take for your current conveyancing choice to provide a penny accurate quotation including disbursements? Cost is an important element in the advisory process and being able to provide accurate figures for conveyancing at the earliest stage, makes the sale process that much more robust and does not leave you open to ‘extra charges’ that your client was not expecting.

&ltb&gtCase tracking&lt/b&gt
Do you have reliable two way communication with your conveyancer? Perhaps you are relying on call backs from individuals who change constantly and you are continually chasing rather than receiving progress information. With the right conveyancing firm, two way case updates are available online, so you and your client know exactly what the case status is at any time. Online case status also means that you have a complete record of the transaction, which can be very useful in the event of a claim or an investigation.

On a larger scale, the consequences for networks of not taking notice of where conveyancing business is being placed could have a potentially detrimental outcome. If the regulator decided to extend an investigation into whether TCF was being applied to all the processes in which ARs of the network were involved, and included conveyancing, what records would the network have to be able to demonstrate adherence to TCF?

The time is right to reconsider the importance of the choice of conveyancing service we use.