Conveyancing regulation body CLC has published an interim report looking at conditional selling saying it has found a lack of transparency.

After scrutinising 12 solicitor practices, the CLC (Council for Licensed Conveyancers), says almost half were unable to produce written agreements covering ‘referral fees’ from estate agents.

Of the 12, five could not show there was a document laying out how the referrals worked that was available for customers to view.

Panorama investigation

The CLC’s investigation, which will eventually result in a full report, follows last year’s BBC Panorama documentary that exposed conditional selling at a branch of Connells in Oxfordshire.

CLC says the work was “already in the pipeline, but came to the fore last year following a BBC Panorama programme which raised concerns about conditional selling”.

“The review found this can play a legitimate role in conveyancing, helping consumers access services conveniently and supporting collaborate working between estate agents and conveyancers, but only if it is transparent, communicated at an early stage to enable consumers to make an informed choice, and properly documented,” CLC says.

The CLChas made 19 suggested recommendations in light of these interim findings, including earlier and clearer disclosure of referral arrangements so consumers can make informed choices at the outset, and strengthening expectations around written agreements and record keeping.

It also recommends working with the property sector and consumer bodies to improve awareness of disclosure responsibilities, as well as targeted monitoring to assess how effectively any changes are operating in practice.

Code breach

Earlier this year, The Property Ombudsman (TPO) issued guidance to homebuyers on how to spot conditional selling by estate agents.

TPO said any pressure for a buyer to use the estate agent’s solicitor or mortgage broker breaches its code of practice.

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