Lenders consult on separate representation by conveyancers
Published: 29 June 2011 | Author: Bernard Clarke
The CML is now consulting with members and others on a draft set of instructions for conveyancers representing the lender - but not the borrower - in house purchase transactions.
Separate representation is common in commercial transactions, but in residential purchases conveyancers have traditionally represented both the lender and the borrower/buyer.
Separate representation is now more likely to occur in transactions considered to be of higher risk, where there is a conflict of interest, or where the borrower wishes to use a conveyancer who may not on a lender's panel of approved practitioners.
A sub-group of the CML’s legal advisory panel has now developed two documents, the draft set of instructions for separate representation and a standard letter that can be sent out to conveyancers.
The CML is now consulting with lenders and other interested parties on these documents. The consultation will run until the end of August.