CML issues new seperate representation instructions
As lenders move more towards towards a more active management of their conveyancer panels, The Council of Mortgage Lenders has issued a new set of instructions for conveyancers acting for lenders under separate representation conveyancing transactions in England and Wales.
The new instructions will apply when solicitors or licensed conveyancers act only for a lender – as opposed to acting for both lender and borrower – and will take effect in England and Wales from 2 July.
Increasingly, particular solicitors may not be on a lender’s panel, for example because:
- they are new or small firms with low transaction volumes;
- there are commercial considerations to be taken into account;
- the firm is generally unable to deliver the level of service required by a lender; or
- the lender has other concerns – for example the quality of the work delivered.
However, borrowers may wish to use a specific conveyancer – even though not on that particular lender’s panel of accepted conveyancers – or there may be a conflict of interest. In these circumstances it is important that there is absolute clarity about exactly what is involved in acting for the lender. It is equally important for the borrower’s conveyancer to know exactly which elements of work they are not required to do, and which they are, when acting for the borrower alone. The new instructions are designed to achieve that clarity.
Paul Smee, CML director general, said:
“In most cases, the same conveyancer acts for both lender and borrower. However, where this is not the case, it is important that both conveyancers know exactly what is expected of them so that any confusion is eliminated and resulting problems minimised.”