Ditch mandatory upfront information plan, conveyancers urge
The Conveyancing Task Force has told the Government that a voluntary scheme would be much better and that digitisation is not the answer to all problems.
Conveyancing leaders have rejected the idea that it should be mandatory for home sellers to provide upfront information.
The Conveyancing Task Force (CTF) says the move would repeat the mistake of HIPs (Home Information Packs) during the noughties and may make the homebuying process worse.
And the task force, which is made up of 21 law firms ranging from small law firms up to a PLC, also calls for the Regulation of Property Agents (RoPA) to raise estate agent standards.
By implementing RoPA it would help tackle conditional selling, mis-selling and unlawful pressure on consumers, the CTF says.
Mandatory upfront information would not achieve the goals of reform and may worsen consumer outcomes.”
It was responding to a consultation by the Ministry of Housing, Communities and Local Government on the future of homebuying.
“The CTF supports the government’s objective of improving speed, certainty, and consumer outcomes. However, the CTF does not support a mandatory upfront information regime,” the task force says.
“Mandatory upfront information would not achieve the goals of reform and may worsen consumer outcomes.”
Voluntary
Instead, the CTF wants to see voluntary early legal instruction, which would reduce unnecessary enquiries and make chains run more smoothly.
The CTF also dismisses the idea that digitisation is the answer to all the problems.
“The evidence demonstrates that the homebuying system fails not because of a lack of data,” it says.
Bottlenecks
Lender behaviour and bottlenecks at local authorities and the Land Registry are major causes of delays, according to the CTF.
“None of these issues are resolved by digitisation alone. Digitalisation can play a useful role – but only when accountability, evidence, and legal reality are at the centre of reform.”
The CTF earlier warned that the Government’s planned overhaul of the home buying and selling process was an ‘existential threat’ to small regional law firms.
And thats why the system is taking 4 months just to exchnage a contract !
Qualifications will help ensure a minimum level of expertise exists and help agents understand the importance of advising and guiding sellers and buyers in the importance of accurate up front material information, however as we are in limbo between CPRs and DMCC – there is no accurate guidance to include in qualifications. We have our CePAP update meeting yesterday and will be updating all our content in line with Renters’ Rights Act but cannot do anything with material information because of this limbo. We need clear guidance to be able to advise and support agents.
I have always thought qualifications should needed for Estate Agents but these only work i f they’re are policed. That said how does ROPA stop conditional selling when you have a corporate who puts so much pressure on mortgage referrals? I agree the legal process should start earlier with all protocol documents completed at the point a house goes on the market. I don’t understand the issue with providing more information upfront, this surely can only help?
As ever with change we need to ensure it has the desired affect and actually reduces timeframes. The CTF mentions many areas that can delay a transaction but also fail to mention the vast differences in the service each conveyancer firm offers with many transaction being slowed down with to put it politely, companies having “differing priorities and admin practises”.
We must also ensure that change isn’t stopped or slowed because of industries wanting to keep the “Status Quo”. The housing buying process needs an urgent overhaul and as an agent of 36 years it is long overdue. Tweaking round the edges won’t help.