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It has been brought to the attention of the committee that various lending institutions regularly issue letters of offer to clients and/or documentation as part of the ‘solicitor’s package’ that contain requirements from the borrower’s solicitor that appear to be in contravention of the certificateof- title package of documentation, as agreed between the Law Society and the various lending institutions in 1999. The committee sets out its views below in relation to some of these matters that have been brought to its attention by practitioners.

1) Conditions in letters of offer requiring solicitors to furnish certificates or letters confirming the position regarding planning matters: the Conveyancing Committee is of the view that matters relating to planning are covered by the solicitor’s certificate of title. There should not, therefore, be any requirement by way of a special condition in a letter of offer or otherwise that the solicitor should be required to furnish a letter or certificate to any lending institution as a prerequisite to the issuing of a loan cheque.

2) Conditions requiring a solicitor to confirm the position regarding wayleaves on title: The committee is of the view that matters concerning wayleaves on title are covered by the solicitor’s certificate of title and there should be no requirement that a borrower’s solicitor furnish any letter or certificate to the lending institution in this regard as a prerequisite to the issuing of the borrower’s loan cheque.

3) A requirement that the borrower’s solicitor agree to act as the borrower’s attorney throughout the course of the loan for the service of proceedings by the lending institution during the course of the loan: the Conveyancing Committee believes the above requirement is completely unreasonable and that no solicitor should agree to act as attorney for the borrower in these circumstances, bearing in mind that the solicitor may not even be instructed by the borrower at the time that any proceedings are issued.

4) (a) A requirement that the borrower’s solicitor certify to the lending institution the source of the borrower’s balance of funds applied in the purchase of the property;

(b) A requirement that the borrower’s solicitor certify how the borrower will apply the proceeds of the loan cheque/certify the purpose of the borrower’s loan: it is the view of the Conveyancing Committee that solicitors should not give certificates of this nature to any lending institution. These are matters on which the lending institutions can satisfy themselves by obtaining the necessary certificate or letter directly from the borrower. The committee is aware that solicitors have certain obligations under moneylaundering legislation and the profession has been advised as to the type of documentation prudent solicitors should obtain from their clients in conveyancing transactions. However, it is also the case that lending institutions have their own obligations to fulfil under money-laundering legislation. These obligations are different to the obligations on a solicitor vis-à-vis their own client and, in the view of the Conveyancing Committee, solicitors acting for borrowers have no function whatever in attending to satisfaction or fulfilment of the money-laundering requirements placed on lenders by legislation. These are matters strictly for the attention of the lending institutions themselves.

5) Requirement that solicitors collaterally stamp assignment of life policies: it is the view of the Conveyancing Committee that solicitors should only be expected to collaterally stamp assignment of life policies if the signed assignment forms are furnished by the lending institution to the solicitor before the solicitor attends to stamping of the client’s title. It is expected that such requirements will disappear over time in any case, given that it is no longer necessary to stamp assignment of life policies.

6) Requirement for production of an architect’s certificate of compliance with planning permission and building regulations prior to drawdown: it is the view of the committee that a purchaser is not entitled to a certificate of compliance until the purchase is completed or, where appropriate, the final stage payment has been made, and it should not be a requirement of any lending institution that the certificate of compliance must be lodged with the lender before the final stage payment/loan cheque issues. The committee is also of the view that the certificate of title and the solicitor’s undertaking, as agreed with all lending institutions, covers planning matters.