As post-completion is the final part of a conveyancing transaction, there is a risk that this part of the process can be seen as less important and not given the required care and attention that it requires, which is also imposed by the regulatory bodies.
If post-completion formalities are not carried out to the required standards, firms run the risk of suspension or removal from lender panels, lack of repeat business, fines, penalties, complaints and increased insurance premiums to name but a few. Therefore ensuring a firm’s compliance policies and procedures extend to the critical function of post-completion is essential.
Regulations are updated and created all the time; therefore, it is essential to have a proactive and effective compliance function to ensure the smooth running of the firm.
What is Compliance?
Compliance means adhering to all applicable regulations, policies, standards and ethical principles. The bodies that govern solicitors and conveyancers set regulations, which have to be followed during all parts of a conveyancing transaction to ensure a firm acts lawfully and compliantly. In order to achieve full compliance all applicable regulations, policies, standards and ethical principles should be clearly set out in a firms internal policies and procedures.
These internal policies and procedures should be accessible to all employees and each employee should be able to demonstrate knowledge and understanding of the policies and procedures that apply to them.
Why is Compliance Important in Respect of Post-Completion?
The purpose of compliance is to mitigate risk, build trust and ensure a firm is operating to the correct standards and regulations, both legally and ethically. All law firms have a critical role in ensuring compliance, both for their own operation and for their clients.
These standards and regulations start from the point of file opening all the way through to the closure of a file after registration, and beyond.
What Commercial Value Does Compliance Within Post-Completion Bring?
There is a saying that goes “if you think compliance is costly, try non-compliance.’”
Failing to comply with standards and regulations can result in penalties, fines, compensation payments, increased premiums, lost management and fee earner time and loss of repeat business. When you look at the costs that can be incurred it is clear that getting compliance right is the cheapest option in the long run.
How to “Do” Post Completion Well
Given the risks associated with post-completion, it’s important to consider how your firm might tackle the sizeable volume of post-completion work in the aftermath of the SDLT deadline.
Gap Analysis – compare your current performance against your desired performance. and identify if your law firm is meeting the requirements imposed by the necessary regulatory body. if/where gaps are identified, ensure you put corrective steps in place to ensure compliance. The result of a gap analysis provides an insight into the best version of your post-completion department.
Post-Completion Compliance Policies – Post-completion policies provide a framework against which firms can ensure they are operating in a compliant manner. A main, overarching policy can be complemented by sub-post completion policies including
- Post-Completion Compliance Policy
- File Management Policy
- Due Diligence Policy
- Priority Search Policy
- Register Policy
- Restriction (certificate of compliance) Policy
- Reply to Requisition Policy
- Monitoring Application Policy
- Warning of Cancellation policy
- Extension of Time Policy
- Archive Policy
- Title Information Document Policy
Checklists – Checklists are a key tool used to eliminate errors, improve accuracy and save time. Having the correct checklists in place in your post-completion environment will ensure errors are spotted pre-submission, requisition rates are reduced, consistency in how applications are processed and submitted and increases the efficiency of team members. You might consider having documents which provide clear guidance for the team including
- Audit Checklist
- Authority to Act Checklist
- New Lease Checklist
- Plan Checklist
- Remortgage Checklist
- Transfer of Part Checklist
- Transfer of Whole Checklist
- Undertaking Authorisation Checklist
PC Handover Form – We recommend a PC handover form which can be used as a map for the recently completed transaction. This form directs the post-completion team to all documents needed to guarantee the transaction is correctly registered, therefore reducing the risk of future complaints and issues. We recommend
- Post-Completion Induction Form
- Post-Completion Instruction Form
- Requisition Evaluation Form
- Risk Register Form
File Reviews – An essential part of any successful compliance package. File reviews should be carried out on a regular basis to warrant that a firm’s service levels are adhered to, transactions are being progressed in the most efficient way, to establish the technical competence of staff and highlight any training requirements.
Ultimately errors made pre–exchange can have a detrimental effect post-completion, therefore by understanding what is needed to perfect an application, creates a seamless end to the transaction for the client and makes you more compliant. Our formula has always been ‘begin with the end.’ We believe every fee earner should undergo extensive post-completion training before conducting their own files both for the benefit of their own expertise, and for the protection of the firm.
Maria Hardy is Company Trainer at PCC Education Hub and Manager at Property Conveyancing Consultancy, providing outsourced post-completion services and training
