2013 – 91% of lenders changed CML Conveyancing Handbook

2013 – 91% of lenders changed CML Conveyancing Handbook

Lexsure previously known a Conveycentric this week produced information showing how careful conveyancers need to be.

Not only did nearly all lenders changePart 2 of their instructions to conveyancers in 2013 they are also increasing the frequency of changes they are making.

Lexsure’s review shows that 91% of CML lenders amended their Part II policies in 2013, with over 1,793 sections changed. They say that this represents a 68% increase in policy change activity compared to 2012.

Frequent changes conveyancers need to be careful about include post completion documentation the lender wants and the lenders views on personal local authority searches.

The Green Deal and Solar panels were also areas of change in the instructions.

Simon Seaton CEO points out that claims by lenders have accounted for around a quarter of all claims against the profession in the last four years with the majority of these emanating from residential conveyancing. “Conversations with professional indemnity insurers reveal real concerns that conveyancing claims are not set to fall away. The increased complexity and frequency of changes is only going to boost the possibility of claims.”

Simon continued saying, “Experienced conveyancers may take it for granted; some new conveyancers may not have studied the handbook carefully, both options are dangerous.”

”Solicitors should not assume they know what the lender’s requirements are from one transaction to the next – they should always check.”

For a complimentary copy of Lexsure’s Annual Market Complexity Survey, please email [email protected].

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