Q and A’s regarding the Nedbank Solicitor Panel
from members of the public
I would like to know the reason why all property lawyers are not on the Nedbank Solicitor panel?
Pre- 2008 most lenders had an appetite for risk which was higher than today. The Financial Services Authority in 2010 conducted a thematic review into mortgage fraud which concluded: know the conveyancing solicitors that you are dealing with. Consequently, lenders have regularly sought more information from law firms about their operations and the individuals who work for them and set certain criteria such a completing on a minimum number of transactions. Many firms that have been excluded from lender panels have 100% healthy track record, no complaints and no claims and didn't just 'dabble' in conveyancing. Such firms were never going to meet the criteria of volume of transactions the lenders required.
We are nearing an exchange and my parents having transferred the 10% deposit to my lawyer. I am now advised that as the deposit has not come from me my lawyer needs to disclose this to my lender Nedbank. I am advised that, being on the Nedbank conveyancing panel and acting on their behalf he must inform Nedbank if the balance of the mortgage advance is not just from me. I disclosed to the bank about my parent’s contribution when I applied for the home loan so is it really necessary for him to raise this?
Your lawyer is obliged to check with Nedbank to make sure that they are aware that the balance of the purchase price is not from your own funds. Your solicitor can only report this to Nedbank if you agree, failing which, your lawyer must cease to continue acting.
Do all the licensed conveyancers and solicitor practices listed on your search have online case tracking as I was under the impression that this was a precondition of being on the Nedbank conveyancing panel?
No. There is no CML Part 2 or Building Society Association requirement relating to online case tracking. Some law firms operate such technology and some don't.
I am considering applying for a Nedbank mortgage for purchase of a newly converted (under development) with 70% LTV. Is it compulsory to choose a solicitor on the conveyancing panel for Nedbank?
In theory, you could use a solicitor that is not on Nedbank conveyancing panel, but Nedbank would require one of their panel solicitors to be instructed to act in their interests, and you'd have to pay for this - so most people instruct a panel solicitor. It's also easier, as otherwise you'd have to deal with two solicitors for the same conveyancing matter.
Do the majority of banks operate their own panel of solicitors?
Many lenders do operate a restricted conveyancing panel but a lot of lenders allow any solicitors to join their panel so long as they meet their criteria. Each lender sets their own criteria. For example the Nedbank conveyancing panel requirements are different to Nedbank’s conveyancing panel requirements.
The mortgage over my property is with Nedbank. Conveyancing has been completed some time ago. In the event that I decide to rent out the flat and do not currently have a buy-to-let mortgage do I need to remortgage to a BTL mortgage or inform Nedbank?
You must advise Nedbank prior to renting your property as this is likely to be a breach of Nedbank’s mortgage conditions. In many cases banks or building societies will allow you to rent out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Nedbank directly. It should not be necessary to do this via a Nedbank conveyancing panel lawyer.
My brother and I are purchasing a flat in Hendon. Conveyancing solicitors in Hendon are about to beinstructed. My agentadvised that we enquire that the conveyancer in Hendon is on the Nedbank approved list of lawyers. Is this really necessary?
Far from all Hendon conveyancing firms are on the Nedbank conveyancing panel. Use the above search tool to search for a
Hendon conveyancing lawyer on the on the Nedbank approved list of lawyers.