Law Society Conveyancing Protocol Flashcards
What is the Law Society Conveyancing Protocol?
It is the Law Society’s preferred practice in residential conveyancing transactions
The protocol can be used in residential conveyancing transactions only (freehold and leasehold)
- It is not appropriate for new build homes
Is observance of the protocol voluntary?
Yes, except for conveyancers who have the Conveyancing Quality Scheme accreditation
But it is considered best practice for Non-CQS
What is the protocol?
Solicitors agree to adopt:
- Standard Conditions of Sale (incorporated into the contract)
- Property Forms
- Formulae for Exchange
- Code for completion by post
There are two parts:
- general solicitor obligations
- protocol framework
What is the aim of the protocol?
To make the conveyancing process more efficient and transparent
The Protocol and enquiries
- Buyer’s solicitor should only make enquiries that are essential to act in their client’s best interests
- Buyer’s solicitor may only raise additional enquiries to clarify issues arising out of the documents provided, or which are relevant to the title, existing or planned use, nature or location of the property
- The seller’s solicitor should confirm and update replies to enquiries if completed more than two months earlier
- Seller’s solicitor does not have to deal with any enquiries that do not comply with protocol
How might a solicitor breach the Protocol?
If they use non-protocol standard enquiries indiscriminately or raise enquiries that seek the seller’s opinion rather than fact
Consequences of breaching the protocol?
Solicitors who choose to adopt the Protocol are obliged to:
- comply with its terms; and
- act within the spirit of the Protocol
If the solicitor breaches it, the Law Society may require an explanation potentially leading to them being monitored or removed from CQS membership
Standard Conditions of Sale
If parties are adopting Law Society Conveyancing Protocol - Standard Conditions of Sale are obligatory
Special Conditions
Standard Conditions of Sale may be amended, excluded or supplemented with special conditions
- If seller’s solicitor is following Law Society Conveyancing Protocol, they may only add other special conditions if they are absolutely necessary
Exchange of Contracts and Law Society Conveyancing Protocol
Seller solicitor preparing the draft contract
If Law Society Conveyancing Protocol is adopted:
- contract should be in standard form
- official copies and protocol forms sent to buyer’s solicitor at the same time
Forms of enquiries under Law Society Conveyancing Protocol
Enquiries usually use the relevant Transaction form
- Buyer’s solicitor can only add specific enquiries in limited circumstances
Protocol forms
- Form TA6 is used for property information in conveyancing transactions
- Form TA10 - filings and contents forms (items that are not included or are not in the sale)
Exchange of contracts
Solicitors carry out exchange according to Law Society Formula B - by telephone call
Exchange conversation involves solicitors:
- identifying any blanks in the contract
- agreeing any handwritten amendments or special conditions
- agreeing and writing in completion date
Once both happy, agree they will exchange contracts under Law Society Formula B
Law Society Formula B undertakings at exchange
- to hold the signed contract to the other solicitor’s order
- to post the signed contract to the other solicitor that day by first class post or DX or hand delivery
- buyer’s solicitor will send the deposit in the form of payment specified by the contract
Pre-completion requisitions on title
Key information regarding completion and relevant undertakings required from seller’s solicitor
- Law Society TA13 form
- Completion Information and Undertakings Form is sent by buyer’s solicitor to seller’s solicitor to obtain information about completion
Seller solicitor undertaking to redeem mortgage
Seller’s solicitor undertakes in Law Society Code for Completion by Post to redeem the mortgage against the property, which it will have already notified to the buyer’s solicitor
- undertakes to give the money to the bank
- the bank then discharges the mortgage
Law Society Code for Completion by Post
Completion - balance of the purchase price being paid to the seller and legal title in the property being passed to the buyer
Completion almost always happens by post (Law Society Protocol)
- seller’s solicitor provides undertakings under the Code that if money is sent, completion will take place
What is a requirement of the Law Society Code for Completion by Post?
As soon as possible, and no later than end of working day after completion, seller’s solicitor undertakes to send transfer deed and other deeds and documents to buyer’s solicitor
- written confirmation of completion must be sent to buyer’s solicitor
Failure to complete and SCS (residential transactions)
The interest (contractual compensation) the party is obliged to pay is calculated at interest rate specified in contract
- If none specified, Law Society interest rate applies
How can the Protocol cause difficulty for a client?
Requirement to keep the other side informed of the client’s situation in any related sale or purchase
