HSBC Conveyancing Panel : Questions and Answers from members of the public
My wife and I are novices when it comes to buying a property. Within the 48 hours our lawyer has sent a preliminary report and documents to look through in anticipation of exchanging contracts shortly. HSBC have this evening contacted us to advise us that there is now an issue as our solicitor is not on their approved list of lawyers. What do we do from here?
If you are buying a property with the assistance of a mortgage it is usual for the purchaser's solicitors to also act for the purchaser's lender.
In order to act for a bank or building society a law firm has to be on that lender's conveyancing panel. An application has to be made by the law firm to the lender to become a member of the lender's panel and there are increasingly strict criteria which the firm has to satisfy and indeed some lenders now require their panel members to be part of the Law Society’s Conveyancing Accreditation Scheme. Your property lawyers should contact HSBC and see if they can apply for membership of the HSBC conveyancing panel, but if that is not viable HSBC will instruct their own solicitors to act. You don't have to instruct a firm on the HSBC conveyancing panel and you may continue to use your own solicitors, in which case your legal fees may increase, and it will likely delay the transaction as you are adding another lawyer into the mix.
Please help. My conveyancer is assuring me that he is legally obliged to conduct a Local Authority search because the firm are on the HSBC solicitor panel. Is this really necessary?
You have limited options available to you. Given that you are taking out a loan with HSBC your lawyer has to comply with their conditions as set out in their version of the CML Conveyancing Handbook. Your lawyer would have previously signed the Terms and Conditions of HSBC’s conveyancing panel appointment which obliges them to follow the CML Handbook requirements last updated HSBC. even if you were a cash buyer you would be ill advised not to carry out a local authority search.
I need to find a HSBC panel solicitor in Belfast. Could you help me?
It is not clear why you need a HSBC panel solicitor but in any event, if you can not find one on our search tool you will need to speak directly to HSBC to find out which solicitors in HSBC are on their panel. If you do find such a firm not listed please direct them to our site to list. After all the cost is only one £1 a month
I am trying to get my ex-husband taken off the mortgage deeds. Can HSBC really tell me which solicitor I can or can not retain?
You can use any solicitor you like but HSBC then has the right to appoint a different solicitor to act for them at your expense. It might be more cost effective and quicker to instruct a lawyer who is on the HSBC solicitors panel
When it comes to lenders such as HSBC do solicitors have to be pay a fee to be on the list of approved solicitors?
We are not aware of any lender fees to be on their panel although some do charge an administration charge to deal with the processing of the conveyancing panel application.
I am about to exchange contracts on a purchase with a mortgage from HSBC. The report from my solicitor mentions that HSBC could withdraw their offer before completion. Is this right?
Lenders such as HSBC can withdraw their mortgage offer although this is unusual. should HSBC withdraw their offer they may or may not inform you or the lawyer as to their reasoning. There are various possible reasons but here are a number of examples:
- Amendments if purchase price adjusted and the loan to value limits exceeded by this. Please note that HSBC conveyancing panel solicitors would be obliged to notify HSBC of a change in the price of the property.
- Where to proceed with the Mortgage offer would be unlawful
- Where the lender has to take account a recent change in taxation
- Where the sale is not at arms length for value to unconnected persons
- If the lender reasonably believe that the applicant, borrower, mortgagor or guarantor is insolvent or is about to become insolvent or has or will have a petition presented or if any one or all enter into any arrangement with their creditors generally or if any one or all should suffer a material change in their financial circumstances
I recently had an offer accepted on a house. My financial adviser suggested a solicitor I paid an upfront payment of 225. Soon after the conveyancers contacted me sheepishly admitting that they were not on the HSBC conveyancing panel. Am I right in thinking that I should be due a refund?
You should be able to recover this from the law firm if they were not on the HSBC panel. They should have asked at the outset which lender you were obtaining a mortgage with. An important lesson to readers of this site is to check that the lawyers are on the appropriate lender panel.