Q and A’s regarding the Principality Building Society Solicitor Panel from members of the public
My fiance and I are novices when it comes to buying a property. Within the last couple of days our conveyancer has sent a preliminary report and documents to look through with the expectation that exchange is imminent. Principality Building Society have this afternoon contacted us to inform me that there is now an issue as our lawyer is not on their approved list of lawyers. Is this a problem?
When purchasing a property with the benefit 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 Quality Scheme. Your solicitors should contact Principality Building Society and see if they can apply for membership of the Principality Building Society conveyancing panel, but if that is not viable Principality Building Society will instruct their own lawyers to represent them. You don't have to instruct a firm on the Principality Building Society conveyancing panel as you are at liberty to use your preferred lawyers, in which case your legal fees may increase, and it may delay matters as you have another set of people involved.
I am buying a brand new flat and my conveyancer is advising me that she has to reveal incentives from the builder as her practice is on the Principality Building Society conveyancing panel. I am on a tight deadline to sign contracts and I have no desire to delay the conveyancing. Can I insist on an exchange regardless of what my lawyer says about being on the Principality Building Society panel?
You should not exchange unless you have advised to do so by your lawyer. A precondition to being on the Principality Building Society approved panel is to comply with the CML Handbook requirements (last updated for this lender on Principality Building Society). The CML Conveyancing Handbook requires that your lawyer have the appropriate Disclosure of Incentive form completed by the developer and accepted by your lender.
Do banks and building societies provide you with an approved list of solicitors? How do you know who is on the Principality Building Society conveyancing panel?
The law firm practices themselves provide us confirmation that they are on the Principality Building Society conveyancing panel as opposed to being supplied with a list from Principality Building Society directly.
The firm that just started acting on my house acquisition in Hendon has without warning closed. I only went with them because I needed a solicitor on the Principality Building Society conveyancing panel and my previous lawyer was not. I paid them £200 on account. What are my options?
Assuming that you have an Estate Agent in the equation then inform them immediately so that they advise the vendors that there may be a slight delay due to the problems encountered. Most sellers would be sympathetic and urge their lawyer to send a new set of papers to your new solicitors. You will need to appoint new lawyers that are on the Principality Building Society conveyancing panel and notify the lender. If you have paid over any money it will hopefully be held by the SRA as money in an intervened firm's bank accounts is transferred to the SRA. Then, the SRA or the intervention agent looks at the intervened firm's accounts to work out who the money belongs to. To claim your money you will need to contact the SRA. If the SRA cannot return money you are owed from the firm's bank accounts, or if they can only return part of the money, you can apply to the Compensation Fund for a grant. Your new lawyers should be in a position to help
Is the case that all CQS (Conveyancing Quality Scheme) solicitors on the Principality Building Society conveyancing panel?
Some major lenders now use CQS as the starting point for Panel approval such as HSBC and Santander. CQS membership however is no guarantee to lender panel acceptance. That being said,the CML have indicated that it is likely to become a pre-requisite for firms wishing to join their approved list of conveyancing solicitors.
I have paid off my mortgage with Principality Building Society. I assume I don't need a solicitor on the Principality Building Society panel to remove the mortgage at the Land Registry. Am I right?
If you have finished paying off your Principality Building Society mortgage they may send you evidence showing that you have paid it off. Alternatively they may notify the Land Registry directly. The Land Registry need to see this evidence before they will remove the Principality Building Society mortgage from the register. Principality Building Society,and any evidence they send you, will determine the action you need to take. In cases where no conveyancer is acting for you and you have paid off your mortgage:
but are not moving to another property
where the Principality Building Society has sent the Land Registry the discharge electronically, and
the Principality Building Society has instructed the Land Registry to do so
The Land Registry will send you a letter confirming that your Principality Building Society mortgage has been paid off.
I can not work out if my mortgage offer requires a lease extension . I have telephoned Principality Building Society on various occasions and told it wasn't a problem and they would lend. My solicitor - who is on the Principality Building Society conveyancing panel- telephoned and was told not they would not lend in accordance with their CML Handbook minimum lease term requirements. Who do I believe?
Your lawyer has to follow the CML Handbook Part 2 requirements for Principality Building Society. Unless your lawyer obtains specific confirmation in writing that Principality Building Society will go ahead your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask Principality Building Society to contact your lawyer in writing confirming that they will accept the remaining number of years left on the lease.
