Lodgment of title deeds with lenders
Many practitioners will be aware of the difficulties associated with getting lenders to acknowledge receipt of title deeds. A lender may not acknowledge receipt or may furnish a general letter of acknowledgment, but not a signed schedule confirming receipt of the specific documents listed therein.
The onus is on the lender to ensure that the specific documents listed in the schedule are furnished. However, difficulties may arise subsequently if it is discovered that a particular deed or document is missing. In order to avoid the implication that the solicitor may be responsible for this omission, it is recommended that the following paragraphs be inserted into correspondence lodging title deeds with lenders:
鈥A duplicate schedule is attached for you to sign and return to us in order to acknowledge receipt of the enclosed title documents.
In default of hearing from you within ten working days, this firm will take it that you have received all the documents on the schedule and that it is released from any undertaking given in relation to this transaction and in relation to the title documents and thereafter this firm disclaims all responsibility for the title documents.
Our file will be closed and placed in storage and any query from you arising in relation to this matter after that date will incur a charge, details of which will be provided to you at the time of raising the query, and which charge will be payable in advance of replying to such query.鈥
A copy of the correspondence and schedule should be retained on file and may also be copied to the client at the same time. It is also recommended that the title documents be delivered by hand or some form of recorded delivery.