Conveyancing where separate solicitors for lenders

Society is investigating a practice of lenders' agents insisting on an executed and stamped disposition before they release loan funds

The Journal, November 2000, page 10

---

On two occasions in recent months a problem has been brought to the attention of the Professional Practice Committee regarding settlement with separate agents acting for a lender. The lender’s agents insisted on delivery of an executed and stamped disposition in favour of the purchaser before they would release the loan funds to the purchaser’s agents.

In one case the solicitor had to travel a considerable distance from his own office to Glasgow to deal with the matter and in a more recent case the lender’s agents were eventually satisfied with a faxed copy of the executed disposition sent to them by the seller’s agents. The Committee felt that the profession should be advised that this may be a growing practice which the Committee is investigating, and further information is sought about the extent of it. Solicitors who have had experience of such a practice should contact Bruce Ritchie at the Society. In the meantime the Committee felt that lender’s agents should advise borrower’s agents at the earliest opportunity of such a requirement which is regarded as a departure from normal practice. Failure to give such an indication until the last minute could be regarded as misleading another solicitor.

Current News 28.08.08 Auditor of Court appointed Kenneth Cumming to take over from Neil Crichton at the Court of Session 28.08.08 North move for private client specialist Mark Stewart joins Aberdeen firm Stronachs as a partner 28.08.08 Database of domestic abusers needed HMIC recommends Scottish police forces adopt common practices and processes 27.08.08 Shared equity scheme details out New supply shared equity intended to help people on low incomes get on housing ladder 27.08.08 Prison population hits record levels More than 8,000 people now locked up; SPS says it can contain but not provide services 26.08.08 Concerns over mortgage requirement change Society says revised new-build instructions to solicitors not appropriate for Scots market 26.08.08 MSP proposes equity fines for companies Owners should be accountable for health and safety breaches, says SNP's Wilson 25.08.08 Legislation needed for land management row Home owners should not be locked in to manintenance agreements, says MP 25.08.08 Special meeting backs Society's strategy Review group the way to keep up pressure on legal aid, solicitors agree 25.08.08 Eight Scottish law firms in UK top 100 Magazine survey rates firms according to turnover for last year 22.08.08 Lawyers meet to discuss legal aid reforms Law Society 'puzzled' by Glasgow Bar Association's call for special meeting 22.08.08 Law firm's dress down Fridays benefit charity £1,000 plus donation to Ayrshire Cancer Support from staff at HBJ Claims Solutions 22.08.08 Meeting to discuss vulnerable witness measures Justice Secretary and Lord Advocate want to ensure compliance with Act 22.08.08 Call for Chancellor to freeze stamp duty Edinburgh five hand in petition, saying such a move would help the property market 21.08.08 Flexible insurance deal for guardians agreed Public Guardian agrees scheme for easier and quicker applicaton process