The role that solicitors play in the mortgage market has become increasingly high profile over recent years. Conveyancing is an essential part of the house buying transaction and solicitors who can offer good use of technology and efficient processes have become a central cog in the wheel used to drive forward a faster, more efficient process.
Breaking it down to its simplest form there are many types of solicitor, so it is important to choose one that is a specialist in conveyancing. A conveyancing service is offered by the majority of solicitors but a specialist in the field is more likely to offer a quicker, technologically driven approach and have sufficient resources for good case management.
But while the progress to ever-faster mortgage decisions is frequently highlighted, often the legal conveyancing part of the process can be perceived to be a sticking point that slows everything down.
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Conveyancing is also advancing rapidly. While there is a government commitment to all conveyancing being done electronically by 2010, many good conveyancers are already getting ahead of the game and carry out the majority of their work via e-mail and the internet. There is a growing belief that the role of the high street solicitor in performing a traditional conveyancing role will change quite radically over time.
It is a common myth that solicitors will slow things down and drag the process out so that they get paid more. In reality conveyancers have reduced prices over recent years and now provide a highly competitive, exceptionally good value service. It is also in the interests of the conveyancers to ensure that loans complete speedily, efficiently and with minimum fuss as solicitors get paid on completion like everybody else.
An altering job
What is happening is that the fundamental ‘job’ of conveyancing is altering. The move towards automation offers the opportunity for bigger, hi-tech firms to capitalise on scalable processing benefits which smaller firms may find hard or be unwilling to match. Although conveyancing has always – and will always – need excellent personal service, there is also a numbers game to be played which will favour some more than others. It is vital for conveyancers to seize the reins of the technology chariot that is galloping through the mortgage sales process.
The conveyancing process is in danger of being left behind, with the emergence of electronic applications, instant offers and online valuations – unless it seizes the initiative and quickly. Otherwise it risks being exposed as the Luddite of the group. If it does become the weakest link in the chain, it could have serious ramifications on an advisers’ presentation of professionalism and also the speed at which they get paid.
Relationships
Finding an excellent and reliable conveyancer in which you have the utmost confidence are key elements in the relationship for any mortgage broker or lender. Recommending a solicitor who you know can be guaranteed to work quickly, professionally and who can efficiently iron out any issues that arise, will actually enhance the house buying process for your clients and will reflect well on the service that you offer. It can also provide you with a lucrative source of passive income, as solicitors will pay a fee in the same way a lender does.
Relationships like this take time to bed in but there is little doubt that specialist conveyancing firms have looked closely at the intermediary market and developed propositions accordingly. Realising that intermediaries are not experts in this area is key to firms putting themselves in a position to add value while making this complex process simpler to understand from the adviser’s perspective and from their clients.
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A good conveyancer will take the time to explain what they are doing clearly, concisely and will look to work closely with the adviser to gain a better understanding of each client’s needs and aim to reconcile any troubles promptly before they become too problematic.
Look for a conveyancer with a good, comprehensive website. The website should be able to provide you with quotes and e-transmission systems and will enable you to track your client’s case online. This will mean you can see every step of the process and can knowledgeably keep your client informed.
It is important in every aspect of business that we continue to learn in order to move forward. While Financial Services Authority regulation has tested the industry in a number of ways, one thing that should have been learnt is that the ‘don’t put off until tomorrow what you can do today’ attitude is one that has resulted in positive results for firms that have heeded the advice.
As the market continues to move at break-neck speed, it is prudent for firms to start looking now at what they might need from a provider in the future. Early planning is key to getting and staying ahead. It is just one of the benefits of defining and developing such relationships that will stand you in good stead in an ever changing market.
The future
As I mentioned previously, keeping ahead of the game is imperative and competition in the conveyancing sector, like all others, is hotting up. Single provider relationships are being put aside and more are moving towards a more collaborative approach whereby firms establish a variety of relationships to widen exposure to expertise and spread any volume risk.
Looking to the future, e-conveyancing is taking significant strides as the Land Registry pushes ahead unabated with its implementation. The ‘matrix system’, when introduced, will offer complete transparency to every transaction in the chain. This increased transparency will enable the entire chain to see every step of the process online. It will show where any blockage occurs and who is causing it, therefore increasing the pressure on that individual or organisation to sort out their processing.
It will also show exactly how long each transaction has taken. These factors will add to creating efficiency throughout the chain and highlight firms who are inept, which could result in the loss of business for such firms, or on the other side of the coin, could prove a successful promotional tool for the most efficient firms in the chain.
HIP power
E-conveyancing could even seize power from Home Information Packs (HIPs) by achieving many of the objectives that HIPs set out to achieve, but that are now outside of the sellers pack process.
The other benefits that will impact in the HIP process are electronic communication which will mean that e-mail or messaging software is built into the system. This will be complemented by the creation of a new system to upload contracts and supporting documents, offering a viewable version of the land register to reflect proposed contractual terms.
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As is usual, projects that were simply buzzwords in the past are now becoming a commonplace practical reality. Things such as electronic funds transfers and electronic signatures are being implemented and introduce efficiencies into the process at a stroke. The move towards electronic funds transfer will facilitate and improve electronic dealing while electronic signatures will be applied to a variety of documents and contracts throughout the process and will be signed electronically by conveyancers.
The funds transfer will effectively mean that money will be ‘digitalised’ and with this facility in place it is not beyond the realms of possibility that the physical transfer of funds via the existing CHAPs system will become obsolete.
Technology means that no firm can afford to stay still, it is important to keep abreast of all innovation available in order to provide the best service for your client. While brokers, generally speaking, will have extensive knowledge of lenders’ products and offerings, service by these providers is also a factor that should incorporate best advice. Clients in turn are also looking for good service levels from intermediaries and therefore it is equally important for advisers to be in a position to recommend legal firms.
Robust relationships are vital in order to move forward and providing the best offering possible. Technology is one thing, but without trust or confidence in your chosen conveyancer it means little. So picking the right partner with all the necessary benefits available to you and your client will put you in a better position to secure your clients quicker and more efficient completions with fewer complications.
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