New bank powers set to raise conveyancing standards

Janine Wellington, a director at Convey Law, comments on the news that new bank powers are set to raise conveyancing standards.

New powers enabling banks to delay transactions by up to four days to further investigate fraud should help combat fraud and could improve standards across the conveyancing industry.

The new powers, which were originally due to come into effect in early October, will allow banks to delay payments for up to 72 hours where there are reasonable grounds to suspect a payment is fraudulent. They will need to inform customers when a payment is being delayed and explain what the customer needs to do to unblock the payment.

Janine Wellington, Convey Law

Janine Wellington, Legal Director and Head of Conveyancing at Convey Law, commented:

“These laws have been brought in to combat cybercrime and anything that works to protecting our clients and their money can only be a good thing. 

“However, it appears unlikely that Banks will delay client account bank transfers from known and regulated Solicitors or Licensed Conveyancer practices and so delays between conveyancers on the day of completion should not be affected.

“Perhaps we need to view this as a real opportunity to raise conveyancing standards?

“Delays of this nature are usually and more likely to occur when conveyancers have not accounted to their clients early enough in the transaction process and the funds coming from the client is delayed – caught under these rules? 

“All good conveyancers are excellent project managers, and a key part of the conveyancing process is calling in funds well in advance of exchange of contracts and completion. 

“The due diligence surrounding AML and money laundering, source of funds and wealth checks, need to be undertaken very early on in the transaction process to avoid last minute issues that this due diligence can cause.

“Any great conveyancer, ‘will know their client’ very early on in the matter and therefore issues of this nature, should not be a concern or the reason for any delay.

“Perhaps all conveyancers should be asking for all the funds due from their clients before exchange and not completion? 

“We advocate the use of the Conveyancers’ Code for Completion whenever possible in a transaction, sending funds to the conveyancer on the other side of the transaction the day before completion to be held to order pending legal completion. 

“The Code allows for a much better moving day experience for both us and most importantly our clients – and those that are helping them with the upheaval of moving house.

“We look forward to working with our fellow conveyancers, banks and other regulated parties towards a safer and smoother conveyancing outcome for our clients.”

Kindly shared by Convey Law