Ulster Bank’s requirement for priority search in commercial mortgage lending
The Conveyancing Committee has received queries from solicitors on the requirement by Ulster Bank for a priority search to be carried out in commercial mortgage lending cases. The query initially arose before commercial undertakings by borrowers’ solicitors to borrowers’ banks were prohibited at the end of 2010. The committee had sought confirmation from the bank that the matter would no longer be an issue once the above commercial undertaking would no longer be given but, despite protracted correspondence to the bank, the committee has not received this assurance.
In order to clarify the matter for conveyancing practitioners, the committee’s view is that there should not be a bank requirement for a priority search as an automatic requirement in every case and that it is a judgement call for each individual solicitor to make in each case. This position applies whether the solicitor is a panel solicitor acting for the bank or otherwise.