Residential Property Practice: An Expert Guide

The past few years have been diffcult for many conveyancers and residential property practices The recession put a stall on the previously booming property market, and property transactions dropped to an unprecedented low However, there is light at the end of the tunnel. The economy is showing signs of recovery and it is hoped that this will positively impact the property market - with some regions already seeing increased business. For those law firms and conveyancers who are hoping to attract new business and see growth, it is only by staying on top of the issues in the market, and by developing a reputation for quality and customer care that they will be able to do this. This report is designed to help firms to do exactly that. The legal market as a whole has undergone major adjustment. Changes in regulation, client expectations, and technology are just some of the factors that have impacted how a firm and its departments operate. The Solicitors Regulation Authority (SRA) has played a major role in influencing the work of solicitors. Firms and their solicitors are now expected to act in a manner which is compliant with the Principles of the SRA Handbook, and the focus is on achieving outcomes-focused and entity-based regulation. While the OFR regime has placed pressure on firms - and has undoubtedly increased the workload for many - it is also true that by embracing this new regulation, property departments can improve their customer service and ensure they are setting themselves apart from their competitors in more ways than on price alone. With the importance of compliance in mind, and both the requirements it places on firms and the opportunities it can present, this report contains information on compliance for conveyancers, with advice shared on embedding a compliance culture, on the systems and controls firms are expected to have in place, and on the challenges that need to be faced. One of the contributions also takes a closer look at referrals in property transactions and examines how a firm can remain compliant with the Principles in their own referral arrangements. Risk management has come to the fore for all law firms and, in particular, an area of risk associated with conveyancers is that of fraud. Included in this report is guidance on how firms can introduce practical measures to reduce the risk of facilitating mortgage fraud and reducing the risk of negligence claims. The conveyancing process has also become more complex with initiatives such as the new Help to Buy scheme being introduced. This report shares a practical guide on the Help to Buy Equity Loan scheme and a step-by-step guide to the process. It explores the information revolution and the risks and opportunities that the increased availability of information have on the property world. One contribution also details how the internet has changed client behaviour for good and how property solicitors should take advantage of online content and social media to attract and retain clients. One of the most important messages to property departments and conveyancing solicitors, so that they may benefit from the recovery of the market going forward, is that customer service is a powerful tool in differentiating a firm or department from the competition. By focusing on client care, a firm can set itself apart from competitors and reduce negligence claims. Effective pricing strategies that include transparency and communication with clients will help to foster greater relationships with clients and will reduce complaints. Volume conveyancing and the threat of competition in the form of the new ABS entrants to the market are also dealt with in the report. It explores both the possibility of providing a volume conveyancing service and how this can be structured and operated, as well as advice for smaller firms on how to compete in the ABS world. Property practice is the area in which the most negligence claims are made against solicitors. With a growing economy and so many recent changes in the market, the pressure is greater than ever to tackle issues effectively. This report will help property solicitors to overcome increasingly complex changes to how they work, will help them to effectively manage risks, and it provides advice on best practice. Residential Property Practice: An Expert Guide draws on the experience of well-respected conveyancing experts and practitioners to provide essential industry insight to small and medium-sized firms.

Table of Contents:
Executive summary VII About the authors IX Foreword XIII Looking ahead in conveyancing: A focus on quality and client expectations 1 By Eddie Goldsmith, The Conveyancing Association Managing client expectations 2 Looking ahead 4 A final word on clients 5 Compliance for conveyancers 7 By Alison Matthews, Alison Matthews Consulting Ltd Governance 7 An effective compliance culture 8 Risk management 9 Financial control 10 Systems and controls 11 Treating your client fairly 12 Conclusion 13 A closer look at referral arrangements in property transactions 15 By Tracey Calvert, Oakalls Consultancy Limited Compliance with the Principles 16 Risks associated with referrals 18 Key compliance requirements 19 Creating an audit trail for the SRA 19 The bursting of the mortgage fraud bubble - What have we learnt? 23 By Michelle Garlick, Weightmans Mortgage fraud in action 23 Do lenders have clean hands? 24 How do I deal with a lender request for a file? 25 What does the future hold? 26 How can you deal with fraud? 26 A practical guide on Help to Buy 29 By Kathryn Taylor, Gordon Brown Law Firm LLP The Help to Buy Equity Loan scheme 29 A step-by-step guide towards authority to exchange 31 Conclusion 33 Client care in residential property 35 By Nicola Laver, legal journalist, writer, and former property solicitor Negligence claims 35 Outcomes-focused regulation 36 Client care documentation 36 Challenges to communication 37 Costs information 37 Fixed fee agreements 38 Terms of business 39 Customer due diligence: Money Laundering Regulations 2007 39 Source of funds 40 Communication is vital 40 The challenges of technology 41 Conclusion 41 The property information revolution 43 By Ben Harris, TM Group Property information 43 Finger on the pulse 44 Risk or opportunity 44 The future 46 Conveyancing consumers: The science of the buyer decision 47 By Neil Quantick, Quanticks Conveyancing or cognac - It's all the same 47 Priorities 47 The marketing mix 49 The old stuff stands firm 51 How small conveyancing firms can punch above their weight in the brave new ABS world 53 By Paul Hajek, Clutton Cox Everybody's at it 53 The internet has changed client behaviour for good 54 Online content

About the Author :
Richard Barnett Richard Barnett established Barnetts Solicitors in 1980. He is the immediate past chair and current member of the Law Society's Conveyancing and Land Law Committee. Tracey Calvert A highly experienced regulatory compliance specialist, Tracey Calvert was employed by both the Law Society and the Solicitors Regulation Authority for over 14 years and she is now the director of Oakalls Consultancy Limited which provides regulatory compliance services to individuals and entities regulated by the SRA. John Coulter John is an experienced solicitor who has recently moved to Hadaway & Hadaway. Michelle Garlick Michelle Garlick heads up a team of lawyers at Weightmans advising law firms on regulatory compliance, claims and complaints handling and risk management issues. She is also a Law Society consultant. Edward Goldsmith Founding partner of Goldsmith Williams Solicitors and former president of the Liverpool Law Society, Edward Goldsmith is currently the Chairman of the Conveyancing Association. Paul Hajek Principal of Clutton Cox Solicitors, Paul Hajek has been running the firm since 1985 and has been a solicitor for over 30 years. Ben Harris Ben Harris is a director of TM Group (UK) Limited (providers of online conveyancing services). Nicola Laver Legal editor, writer, and former property lawyer, Nicola Laver is also a consultant to FindLaw, a Thomson Reuters business. Alison Matthews With over 22 years' experience with solicitors, (10 years in private practice at a top 10 law firm, and 12 years in Professional Ethics at the SRA), Alison Matthews is truly an expert in all aspects of law firm regulation and compliance. Neil Quantick Neil is the Managing Director of Quanticks, where he heads up the wills, trusts and probate team. Kathryn Taylor Managing partner of Gordon Brown Law Firm, Kathryn Taylor is a specialist in residential property conveyancing transactions with a particular emphasis on new build purchases.