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Showing posts from April, 2016

Unfair constraint on free choice of legal regulator

Changing from one regulator to another should not be difficult and should not be restricted due to the exclusive and unnecessarily stringent arrangements operating between one regulator and the insurance industry. 
How on the one hand can you introduce the flexibility of choosing a regulator that suits your business, and which will benefit the client, and then with the other hand have a rule which places a financial burden of such a magnitude that the cost of switching becomes totally prohibitive.  It simply does not make sense and makes a mockery of not only the role of the Legal Services Board but also the legal profession as a whole.
So, you wish for example to switch regulator from the Solicitors Regulation Authority ( SRA) to the Council of Licensed Conveyancers (CLC). A logical move if you are a conveyancer because  you wish to be regulated by a regulator who understands conveyancing and who has a focused interest in how the conveyancing profession should be allowed to be deve…

Are conveyancers over charging on ‘mum and dad’ assisted property transactions?

Introduction
The principle behind the insurance is that it protects the mortgagee’s (i.e. bank lending the money) title in the property if the donor of a gift or informal family loan goes bankrupt and  the donor’s creditors make a claim to the money as part of the donor’s assets.
But is it necessary?  Do all conveyancers actually understand the applicable law?

Background
The conveyancer is under a duty to both client and the client’s lender to ensure they obtain “a good and marketable title to the property and free from prior mortgages or charges and from onerous encumbrances which title will be registered with absolute title”(Solicitors’ Regulation Authority Handbook).
If there is a gift from a family member ( or a discounted purchase price when purchasing from a family member) or an informal loan the donor on the face of it will acquire an interest in the property. Gifted deposit insurance provides protection if the donor becomes insolvent and creditors of the donor make a claim putt…

The practical implications for conveyancers arising out of the decision in Purrunsing v A’Court & Co & Anor - An article by David Pett Solicitor and Director MJP Conveyancing

In Purrunsing v A’Court & Co & Anor [2016] EWHC 789 (Ch)conveyancers for both the seller and buyer  were held liable for the actions of a rogue seller who committed a £470,000 property fraud.
In this article I examine the findings and provide some thoughts on how conveyancers may wish in the light of the decision to adapt certain parts of their processes. 




Facts
London based conveyancers Home Owners Conveyancing Limited (HOC) (the second defendant) acted for the purchaser (the claimant) of a property which was sold by a rogue seller who was purporting to be the registered owner of a £470,000 property.  The fraudster who claimed to be but was not the registered owner ‘Mr Dawson’ was represented by the Windsor based conveyancers A’Court & Co (ACC) (the first defendant).

By the time the fraud was discovered, the claimant has transferred the purchase monies to his conveyancer (HOC), and these monies had in turn been sent on to the fraudsters solicitors (ACC). Following completio…