RESIDENTIAL PROPERTY - CURRENT TOPICS
E-CONVEYANCING
It is intended that all government services to the citizen should be available online. With that in mind the Land Registry has been taking forward the government’s e-business agenda and legislation to modernise and clarify the law and simplify buying and selling land.
The intention is to speed up the process - with the aim of reducing delays, save time, money and anxiety whilst lessening the scope for fraud.
The Land Registry has a working model showing what can be achieved. It is under a continuing improvement process. They have made proposals for the specification and design of the final e-conveyancing system which is to be implemented in stages.
The intention is to test and create the system which will eventually incorporate a complimentary Electronic Funds Transfer system. This will replace the existing slow and cumbersome system used at present to transfer money on the day of completion.
Because of our modern, forward thinking approach, Coffin Mew LLP were involved in the initial Land Registry trails of the 'chain matrix'.
Rather than being introduced with a big bang, improvements possible under e-conveyancing are being introduced one by one - each building on previous improvements.
Those who have moved before will already know that the conveyancing system as evolved at present can be slow and laborious. However, contrary to popular myth it was not all down to solicitors being too slow! The very first stage for example involved a seller’s solicitor being instructed by a client, obtaining the deeds via the post from the seller’s lender, preparing a contract and submitting it and associated papers to the buyer’s solicitors who will read the papers thoroughly and raise enquiries.
Under that system, a period of two weeks may have already elapsed with no real progress. Using the e-conveyancing system the seller’s solicitor on receipt of instructions from a seller is, in most cases, able to access the land registry online and prepare a contract with associated documentation (also for possible submission online) to the buyer’s solicitors so that they in turn can raise their enquiries online. Using this system a period of two days compares favourably with two weeks.
All searches can now be requested online and following this we should soon see electronic mortgage offers. Importantly, all offices at Coffin Mew LLP already have the facility to make all searches online and to access the Land Registry direct.
The involvement of the Land Registry in the setting up of the final system and their involvement throughout is important - as it will result in their being able to give an overview of any particular chain of transactions, which are also accessible to everyone involved in that chain (known as the 'chain matrix').
For instance, this means that where X buys from Y who buys from Z who is buying from a builder, those involved in the chain will be able to look online to see if all involved have received the result of searches - and if required, received their mortgage offers. Such transparency will reduce stress, as the system will be quicker, potentially cheaper and any weaknesses in a chain will become rapidly become apparent.
The proposed system also includes a completion date setter. This allows all those involved in a chain to log into a single diary and input any dates that they either can or can't move on. This means that everyone in the chain can quickly find a suitable date.
There are also a number of by-products not immediately of obvious benefit to a buyer - this includes registering a purchase at the Land Registry on the day of completion. Certainly any system designed to improve the transferring funds on the day of completion would be a bonus.
Steps towards making these proposals a reality have already been taken. Searches online and direct access to the Land Registry are already part of our daily routine - as is the electronic notification of discharge of mortgages between lenders and the land registry.
These initiatives and the introduction of Home Information Packs have already made a change for the better - and at Coffin Mew LLP we are embracing this change to benefit you, our clients.