Although designed to further improve the house purchasing process through the use of more accessible information, the Land Registry plans have been criticised for favouring conveyancers over lenders.
In a response to the Land Registry consultation paper, the trade body admitted that improvements were needed to the current system, but stated that ‘the consultation is primarily aimed at conveyancers rather than lenders’, and expressed concerns that the Land Registry’s plans failed to include market nuances that occurred.
In particular, the CML response called on the Land Registry to review provisions concerning unilateral notices and delays within the purchasing process that hindered lenders and borrowers.
The paper also suggested greater plans to prevent fraud, and stated that the Land Registry ‘could amend the relevant forms and rules so that both the net and the gross consideration passing have to be declared and placed on the register.
Such transparency would be extremely helpful to lenders and presumably other stakeholders involved in the conveyancing process’.
In proposal three of the review, the CML highlighted the need to improve fraud prevention across the whole of the financial services sector.
The consultation response said: ‘Fraud is a matter of concern to lenders at the moment. One of the key concerns is valuation fraud and ensuring transparency for valuation purposes. Particularly in new build properties, correct valuation is proving to be a difficulty.
"The true price paid is often hidden through incentives given to the buyer. It is unclear from the current rules whether the price paid, which is to be entered on the register, is the net or gross price.’
Hugh Nichols, partner at Badbury Berkeley Financial Services, welcomed the Land Registry proposals, but admitted that take-up among solicitors and conveyancers working within the property arena could be difficult to achieve.
Nichols explained: “It is a good idea to help the property buying and selling process, but its success depends on how much it costs and whether every solicitor involved in property sales would use it.”
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