Modern Law Issue 22 - Conveyancing Supplement

“Announcing the building of new houses is welcome, but it is not enough to tackle the housing crisis that our country is facing�

Jonathan Smithers, The Law Society

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Conveyancing Supplement 2016

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THE EDITOR’S OVERVIEW W

elcome to the latest of Modern Law’s special supplements. The Conveyancing market remains buoyant for many but has not been immune from the continual threat of cyber attacks and pressures associated with lender panels, and with a number of new legislative changes due to come into effect this year, this shows no signs of slowing down.

In this issue, Jonathan Smithers, the current Law Society President speaks to me about his views on the Chancellors proposals to build 400,000 new homes, and the potential impact of the increase in Stamp Duty Land Tax (SDLT) for second homes and buy-to-let properties, which will take effect from April this year. The full interview can be found from page 4. Also in this issue, Mark Carver of Miller Insurance offers his perspective on what converyancers can do to make themselves more appealing to insurers (page 16-17), and Justin Parkinson, Lender Exchange, explains what lenders look for when accepting a firm onto a panel (page 20-21).

04-10 The interviews

Charlotte Parkinson spoke to the President of the Law Society about whether the proposals (to increase the number of new build homes) made by George Osborne in the Autumn Statement are realistic, and key pieces of legislation which will come into force in 2016, that are likely to impact the Conveyancing market.

07 Interview with...Simon Law

Charlotte Parkinson, Group Editor, Modern Law Magazine. @modernchar

19 An innovative approach to Conveyancing searches

04 Interview with...Jonathan Smithers

I’m very proud to announce the launch of the annual Modern Law Conveyancing Awards, which takes place on Thursday 14th July at the Rum Warehouse, Liverpool.

Nominations are now open, for more details about how to enter, please visit http://www.mlconveyancingawards.co.uk/.

If you are interested in sponsoring the event, please contact martin@charltongrant.co.uk and for general event enquiries, please contact ellie.campbell@charltongrant.co.uk. We look forward to seeing you there!

If you would like to be involved in a future edition of Modern Law, or with one of our supplements, please get in touch with me via charlotte.parkinson@charltongrant.co.uk or 01765 600909.

The resurgence of the Conveyancing marketplace has not come without its challenges. Charlotte Parkinson, Modern Law, spoke to the Chairman of the Society of Licensed Conveyancers (SLC) about his concerns around the possible privatisation of the Land Registry, and what the association is doing to combat fraud and in particular, cyber crime.

20 Lender Panels – friend or foe?

11 The Modern Law Conveyancing Conference 2015 The Modern Law Conveyancing Conference, in partnership with the Conveyancing Association took place on 3rd December.

Charlotte Parkinson, Modern Law, reports.

15 Online Marketing Tips for Conveyancing Solicitors

As more and more people head online to find legal services, solicitor firms need to make sure they have a strong online presence. In this article, Cordelia Oxley answers some key questions and offers practical advice.

16 Being risk aware

Property practitioners are often in the spotlight, or are at least the subject of dinner table conversations. Darren Gower explains why.

24 Beyond the shop window

It is reported that out of 4,500 home movers just 13% choose the cheapest conveyancer. Contrary to popular belief, consumers are more focussed and now looking for quality and are more likely to instruct on recommendation, as Lisa Beale explains.

27 Changing for the better

Conveyancing services provider InfoTrack is challenging the norm and helping the industry evolve. CEO Scott Bozinis takes a look at how changes are taking place and what makes them effective.

28 Cyber Crime – Who is to blame?

Mickaela Fox asks whether fraudsters are becoming more sophisticated in their targeting of law firms, and considers who should be held accountable when fraudsters strike.

30 A sea change for the conveyancing sector

Mark Carver explains the insurer’s perspective on conveyancing risks, and outlines what conveyancers can do to reduce their exposure.

Modern Law Magazine

Justin Parkinson considers what lenders look for when accepting firms on to their panels, and outlines the questions law firms should consider during the conveyancing process to protect themselves from potential fraud.

23 Buying, selling, re-mortgaging… it shouldn’t be a slog

11-30 The Features

Lisa Summerton and Andrew Stenning outline how to inject an innovative approach to the searches process.

February 2016

Project Director Kate McKittrick kate@charltongrant.co.uk

This year we could see the most significant change in generations for the conveyancing sector. Maud Rousseau, Group Marketing and Communications Director at SearchFlow, explains.

31 The perception of service

Lisa Beale, Head of Checkaprofessional.com, speaks to Angelo Piccirillo, Senior Partner at AVRillo Solicitors, about how obtaining verified customer feedback can help differentiate your firm.

Group Editor Charlotte Parkinson charlotte.parkinson@charltongrant.co.uk Project Manager Rachael Pearson rachael.pearson@charltongrant.co.uk

Contact 01765 600909

ML // Conveyancing Supplement 2016

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Interview with... Jonathan Smithers

Interview with...

Jonathan Smithers Charlotte Parkinson spoke to the President of the Law Society about whether the proposals (to increase the number of new build homes) made

by George Osborne in the Autumn Statement are realistic, and key pieces of legislation which will come into force in 2016, that are likely to impact the Conveyancing market.

Q A

What are the main priorities for the Law Society in the property world in 2016?

2016 is a busy and exciting year for the property sector, we will be focusing on a wide range of issues. Changes to Stamp Duty Land Tax (SDLT) for second homes and buy-to-let properties has been widely reported on in the press and we will be looking at the impact of this on the market up to 1 April. The introduction of the Mortgage Credit Directive and Help to Buy ISAs will also be of interest to our members, along with the various reviews that will include conveyancing, the ongoing threat of transaction fraud, changes to planning applications from May, Flood Re and its implications, new SDLT for Wales and consolidation of Insolvency Rules, to name just a few.

Q

The 3% increase in Stamp Duty Land Tax (SDLT) for second homes and buy-to-let properties will come into force on 3rd April this year. Do you have any concerns around this new measure?

A

We expect the increase in SDLT on certain transactions will create complexity and complications for solicitors working in conveyancing.

We are particularly concerned that

ML // Conveyancing Supplement 2016

‘Announcing the building of new houses is welcome, but it is not enough to tackle the housing crisis that our country is facing’ the increase will create red tape for solicitors who are tax collectors in property transactions and that sales and purchases could be slowed down as the detailed nature of the purchase is investigated in the light of the changed requirements.

Q

Do you think the proposals made by the Chancellor in the Autumn Statement, to tackle the housing crisis, go far enough?

A

Announcing the building of new houses is welcome, but it is not enough to tackle the housing crisis that our country is facing. A structured, strategic plan is needed for delivery. The essential questions are: Where will these new homes be built? How will the consistent supply of raw materials be assured (an issue which is notoriously problematic in the sector)? With a significant shortage of workers in the building industry, how

Interview with... Jonathan Smithers

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‘The review showed us that although the initial vision was strong the market had changed significantly and that the cost and time needed to get Veyo to the market was too great’ will it have the capacity to build new homes? Considering the skills and materials shortage in the building sector we question whether the ambitious target set out by George Osborne can be met. We very much hope that it can be.

Q A

Will the Law Society be approaching the government to gain clarity as to the strategic plan to build new homes?

The Law Society will be representing member interests across a number of residential and commercial property issues in 2016. On the particular topic of new builds, we will canvass our membership in February before approaching the Department for Communities and Local Government for a greater degree of clarity on timescales, cost benefits, monitoring, impact and how the plans will benefit the community of practitioners in this field.

Q A

Can you elaborate around who is ultimately responsible for the demise of Veyo and your views on why it didn’t succeed?

The CEO and I joined the board of Legal Practice Technologies (the joint venture company between us and Mastek), formed for the purpose of this project when it became clear that the product was not ready for launch. We commissioned an independent review of the product, appointed a new CEO and then a new Chair, and ensured that operational costs were reduced. Closing the project was a difficult decision made by both shareholders, after an independent review of the market. The review showed us that although the initial vision was strong the market had changed significantly and that the cost and time needed to get Veyo to the market was too great. We are conducting an exercise to see what lessons can be learned and are very sorry to those who had waited patiently for the portal and will not now be able to use it.

Q A

Would the privatisation of the Land Registry be a good thing or not and why?

The proposed privatisation of the Land Registry is a focus in 2016, and something which our conveyancing specialist members will be especially concerned about.

In the Autumn Statement, the government made it clear that the purpose of privatisation would be to raise funds to reduce the deficit. We are currently attempting to anticipate what the proposals might look like and to develop our policy ahead of the consultation, which is expected shortly.

Q A

Fraud is arguably one of the biggest issues facing property lawyers because of the nature of the transactions they undertake. What is the Law Society doing to support the profession tackle this issue?

Conveyancing solicitors are a particular target for fraudsters due to the large sums of monies that are transferred between solicitor and solicitor, client and solicitor, and solicitor and lender. The Law Society has a wide range of support in place and forthcoming events lined up in

order to help firms protect themselves against the risks posed by scams, and assist solicitors in the event that they have been scammed. We have published a practice note aimed at helping firms recover if they have fallen victim to a client account scam, we have been developing advice tailored to law firms’ business needs and practices, aimed at assisting them in combating the threats of scams. More generally, the Law Society has also produced practice notes on Mortgage Fraud and jointly with Land Registry a practice note on Property and Registration Fraud. These outline to solicitors the warning signs of fraud and how solicitors can protect themselves and their firm from being used to commit fraud. However, it is important to remember that criminals are able to quickly alter the nature of their techniques, so advice can quickly become out of date. Indeed, as scams awareness among law firms has grown, we are beginning to see a shift away from targeting firms to scamming their clients. The best advice for firms is simple – always verify bank details and beware of last minute changes to bank details.

The Law Society is also in discussion with the representatives of the banks, lenders and insurers and with the police, about collaborating on prevention and detection.

‘As scams awareness among law firms has grown, we are beginning to see a shift away from targeting firms to scamming their clients’

Q A

Is Conveyancing becoming too process driven?

How can the market improve standards at proportionate cost?

Conveyancing and the home buying process is being looked at by several bodies in 2016, all of which will be looking to make changes to the efficiency of the market for the benefit of consumers. H M Treasury is expected to issue a call for evidence exploring options to deliver better value and make the experience of buying a home more consumer friendly. The Competition and Markets Authority (CMA) have already launched their review of legal services including conveyancing for consumers and small businesses. Similarly, the Legal Services Board through the Legal Services Consumer Panel has issued a call for evidence asking where consumers are most at risk, which again includes conveyancing. We expect to be providing evidence and making representations to all these bodies and have of course been working tirelessly for many years to improve the market for consumers.

Q A

What are the key pieces of legislation coming into force in 2016 and how will these affect the market?

As we have already discussed, 2016 is looking like a busy year in property. There is the proposal to privatise the Land Registry, and increases to SDLT in the Finance Act. Other key pieces of legislation include the Water Act and the launch of Flood Re, the Housing and Planning Bill, and changes to taxation for Buy to Let landlords, and lots more.

ML // Conveyancing Supplement 2016

Tuesday 14th June 2016 Manchester United Football Club, Old Trafford “Whether or not you support Manchester United, make sure not to miss the main event of the summer when the Modern Law Conference 2016 fields a top line-up of “premier league” speakers.

In the usual probing Question Time format the conference delegates will hear from four panels explaining how legal businesses in the Regions can succeed in the challenging economic and social climate today. · · · · ·

How can legal businesses in the Regions compete with London? (Birmingham produced the first ABS firm to float).

Does “near shoring” to regional offices make sense?

How important are equality, diversity, human rights and privacy issues for legal businesses and their clients?

How can profitability be maintained for conveyancers and litigators in the face of competition and fixed fees?

Is another Government review of legal services around the corner?

These and many other hot issues of the day will be complemented by a “spark talk” from Manchester United’s Director of Communications.

So don’t miss the kick off and book your place now at the main fixture of the summer season!”

Conference Chairman, Michael Napier CBE QC (Hon)

TICKETS ARE FREE FOR BARRISTERS & SOLICITORS To book your place please visit www.modernlawevents.co.uk Sponsorship enquiries please contact Martin Smith | 01765 600909 | martin@charltongrant.co.uk

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Interview with... Simon Law

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Interview with...

Simon Law

The resurgence of the Conveyancing marketplace has not come without its challenges. Charlotte Parkinson, Modern Law, spoke to the Chairman of the Society of Licensed Conveyancers (SLC) about his concerns around the possible privatisation of the Land Registry, and what the association is doing to combat fraud and in particular, cyber crime.

Q A

Why does the Conveyancing profession need an organisation like the SLC and what are its core aims?

When licensed conveyancers were created through the Administration of Justice Act, the new regulator for the profession, the Council for Licensed Conveyancers (CLC) was created by statute. There was no provision within the Act for a professional body to represent licensed conveyancers. The CLC have clearly defined responsibilities in law to regulate licensed conveyancers, but are not able to represent them as well and so there was a gap in the market for an organisation to help licensed conveyancers in many aspects of their professional life. The Society was created in the late 1980’s to fill the gap and whilst there is no compulsion for licensed conveyancers to join us, our members’ numbers have increased at a steady rate over the last couple of years. We are actively seeking to gain more members and are trying to work with the CLC as far as we can to promote the Society.

Q A

You took up the position of Chairman of the SLC in 2012, how has the organisation and profession evolved in that time?

The Society has become prominent in promoting the licensed conveyancer profession and we have introduced many services that are of benefit to our members. As an example, we have an affiliation scheme with case management suppliers, who offer a preferential rate to members, as well as search companies. We have

‘With the introduction of our PII policy, premiums have reduced across the board and service levels have increased, even for those firms who stayed within the CLC policy option’

Simon Law Simon took up the post of Chairman of the SLC in October 2012. Simon is a Director and Head of Legal Practice for Dc Law. Simon has extensive experience working in the profession having worked for large and small firms. Simon established Secure Legal Solutions in 2010, which merged with DC Law in January 2013. In his spare time Simon plays rugby and is also President of Northampton Outlaws Rugby Club.

ML // Conveyancing Supplement 2016

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Interview with... Simon Law

‘The CLC is widely respected as a fit for purpose regulator that is proportionate, expert and a strong communicator’ also introduced our Professional Indemnity Insurance (PII) scheme, which we offer as an alternative to the CLC’s Master Policy. Only two licensed conveyancer firms had previously opted out of the Master Policy and taken their own insurance and the brokers for the CLC Master Policy didn’t have any competition. With the introduction of our PII policy, premiums have reduced across the board and service levels have increased, even for those firms who stayed within the CLC policy option. We are also creating an ongoing Library for members, comprising various reports into everything from Japanese Knotweed to Energy Performance Certificates (EPC’s). We now provide a lot of advice in different forms and have put together the SLC Terms of Business, which have also been approved by the CLC. This has proved extremely beneficial for start up firms as they can access a range of documents to help them. Our annual conference has also grown and is now one of the go to events for licensed conveyancers and our regional road shows are also going from strength to strength. During my time as Chair of the SLC, I have also been involved in the evolution and implementation of the Leasehold Property Enquiries (LPE1) and we have regular consultations with the Council for Mortgage Lenders (CML) and Land Registry amongst others.

‘[The SLC and the CLC] work together where we can and are able to, and we worked with the CLC in the implementation of the alternative PII policy, which they approved in a matter of weeks’

Q A

How do you balance your time between the SLC and your role at DC Law?

My role at DC Law is what I am paid to do so clearly, that is my main focus. I am Head of Legal Practice at DC Law, and that role includes looking at compliance, regulatory functions and keeping on top of changes in the marketplace. My role at DC Law dovetails well with being Chairman of the SLC and I am very fortunate that DC Law are happy for me to take days whenever I need to for meetings with the Land Registry, the CML or the CLC, which take place a couple of times a month. From a day to day point of view, the SLC is run by the Secretariat who coordinates our events and organises the meetings with the relevant bodies.

ML // Conveyancing Supplement 2016

Q A

How does the organisation work in tandem with the Council for Licensed Conveyancers (CLC)?

It is fair to say that about 10 years ago, the SLC and the CLC had a bit of a strained relationship. That has very much changed in the last 5 years and we now work very well with and have a lot of respect for the CLC. Each organisation understands the other and also the boundaries to which we can work constructively together.

We do have differences of opinion at times but (generally) they provide a basis for informed debate. We work together where we can and are able to, and we worked with the CLC in the implementation of the alternative PII policy, which they approved in a matter of weeks. We have worked with them when we have had enquiries from solicitor firms looking to change their regulator to become regulated by the CLC.

Q A

Do you anticipate the role of the CLC to evolve in terms of regulation of conveyancers?

Their role will change and I expect there will be a sustained continual migration of Conveyancing firms and professionals opting to be regulated by the CLC. There have been some real and perceived barriers to switching regulators. Namely, around Lender Panels, as firms would potentially have to go through being revalidated or being removed from a panel when switching regulators. The greatest barrier was around runoff cover being required, which placed an additional cost on to members. I am hopeful that this issue will be resolved soon so that runoff cover will no longer be required when changing regulator.

The CLC is widely respected as a fit for purpose regulator that is proportionate, expert and a strong communicator.

They are currently undertaking a review of their regulatory arrangements, including their Code of Conduct and the Compensation Fund. We welcome the review and we wait to hear from them in terms of their plans. I hope in future that the CLC would look at expanding their regulatory envelope to include litigation in property matters.

Q A

Could the requirement for firms to present a defined number of transactions to some Lender Panels impede some firms (specifically smaller firms) from getting on to panels?

This is definitely an issue that we are aware of and we are lucky at the moment that there are only a limited number of Lenders who are looking to use this measure. We are challenging this issue and are surprised by the stance, as the essence of a Licensed Conveyancer is that they are, by nature, a specialist property lawyer.

We are increasingly finding that larger Lenders will admit licensed Conveyancing firms on to their panels without the

Interview with... Simon Law

09

‘The lack of conveyancers in the marketplace following the recession is a concern and it has been difficult to get people who have left the profession to come back’ requirement for a defined number of transactions. This is largely due to the regulatory regime that is in place and the information that the CLC is willing to share with lenders, and the SLC are entirely comfortable with that. Where individual members are having issues, the SLC always tries to assist them with Panel Membership and we have been successful in doing this on a number of occasions.

Q A

What are the biggest challenges for licensed conveyancers and why?

There are a number of challenges facing licensed conveyancers. Firstly, to keep up with the implications of regulatory and other stakeholder interventions. Secondly, we have the changes to Stamp Duty Land Tax (SDLT) coming into place this year, as well as the implications of the (apparently defunct) Green Deal, although there are still around 4,000 green deal loans which have been taken out and need dealing with. The third significant challenge is the introduction of minimum Energy Efficiency Ratings for private rental landlords. Fourthly, the Infrastructure Act implications are also still unknown and we still face the pending consultation on the privatisation of the Land Registry. Cyber crime is also high on everyone’s radar at the moment and very worrying for the profession as the whole. Lastly, the lack of resources and talent within the marketplace following the downturn present a challenge.

Q A

Are conveyancers coping with an upturn in work following the recession?

It has been difficult and there are a number of vacancies at DC Law at the moment. Licensed conveyancers are better placed to handle the upturn because we don’t have the distractions of other areas of law and our staff aren’t syphoned off into other areas of law when conveyancing is quieter. The lack of conveyancers in the marketplace following the recession is a concern and it has been difficult to get people who have left the profession to come back. The licensed conveyancer course as a route

The Society of Licensed Conveyancers The Society of Licensed Conveyancers is the professional body that represents the Licensed Conveyancer profession. It exists to serve the interests of its members working constructively with the Council for Licensed Conveyancers (CLC) as well as other stakeholders such as Government Departments, industry representative bodies, consumer organisations and the media; national, local and trade.

to the profession is a good way of attracting new staff.

Q A

What are your concerns around the possible privatisation of the Land Registry?

The number of staff at the Land Registry has decreased over the last few years and I have concerns over ongoing efficiency in a privatised company, including what service level arrangements would be in place, who would oversee that and what penalties would be in place if they were not met. We are also concerned over whether we would see a continued investment in innovation, as the Land Registry have brought out initiatives such as the Property Fraud Alert service and the Map Search, which are great online tools. There is a lot more that could be done with the Land Registry in technological terms; it would be good to see them continue developing the possibility for digital signatures on Mortgage Deeds. There is also questions around the implications for the Local Land Charges Project and whether it would continue, as well as how it would be funded in the long term.

Q A

What is in the pipeline for the SLC over the next year and beyond, are there any particular initiatives you will be focussing on?

We have another full on year ahead, one of the key initiatives will be in relation to fraud and cyber crime, which will be the focus of our regional road shows.

We will also be issuing member guides on specific aspects of those subjects. We are also starting to plan this year’s conference, which will take place in November. There are the upcoming consultations to review, including the SDLT and the Mortgage Market consultation, being lead by the Financial Conduct Authority (FCA). We will continue to meet with stakeholders, as well as the CML and the CLC throughout the year and look at the various projects we have coming up.

‘I have concerns over ongoing efficiency [if the Land Registry is privatised], including what service level arrangements would be in place, who would oversee that and what penalties would be in place if they were not met’

ML // Conveyancing Supplement 2016

Thurs 14th July 2016 The Rum Warehouse Liverpool

NoMiNatioNs opeN Now www.mlconveyancingawards.co.uk For sponsorship opportunities please contact Martin@charltongrant.co.uk | 01765 600909 All Events Enquiries ellie.campbell@charltongrant.co.uk | 01765 600909

The Features

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In Partnership with

The Modern Law Conveyancing Conference 2015 The Modern Law Conveyancing Conference, in partnership with the Conveyancing Association took place on 3rd December.

Charlotte Parkinson, Modern Law, reports.

T

he first annual Modern Law Conceyancing Conference took place on 3rd December at Stamford Bridge, Chelsea F.C. and a wide selection of Conveyancing practitioners flocked to hear from those at the forefront of innovation in a revitalised marketplace.

Conference Chairman and Partner at Goldsmith Williams, Eddie Goldsmith introduced the first panel session of the day, which included Andrew Hopper QC; Sheila Kumar, Chief Executive, Council for Licensed Conveyancers (CLC), Crispin Passmore, Executive Director, Solicitors Regulation Authority (SRA) and Priya Anand Patel, Head of Compliance & Risk Management, Legal Eye. The panel had been brought together to consider the regulation of conveyancing practices and Goldsmith was quick to probe the SRA and CLC over the contrast between the two bodies’ approach to regulation, citing that a number of SRA regulated firms had “opted to be regulated by the CLC”. Passmore responded by

acknowledging that the SRA needs to be a “better regulator”, highlighting that the frontline regulators are working to “simplify” the process, “work with” other regulators and “give firms a choice”. Reiterating the theme surrounding consumer choice, Kumar explained that, whilst the Legal Services Act (LSA) 2007, hadn’t yet come to “full fruition”, choice remains an important factor, meaning that there is “still space” for specialist regulators. Kumar’s reasoning for firms opting to be regulated by the CLC rather than SRA was that the CLC was created “solely to regulate conveyancers” and so presented a more attractive option to some.

A market sea change Hopper engaged in the debate next, explaining that the SRA are a “proportionate regulator” and one with “with whom a dialogue can be had”. He added that, in his eyes, the key issue with the SRA is that there is a “disconnect” with policies “at the top” and “what happens at the bottom”.

Adding, “we have been told the SRA is changing but are still waiting for evidence of this”. Passmore injected stating, “the purpose of the SRA is not to be popular with lawyers but to be a good regulator”, explaining that the SRA will be altering KPI’s “over the next few months”. The number of firms migrating

‘The purpose of the SRA is not to be popular with lawyers but to be a good regulator’ Crispin Passmore, SRA

to be regulated by the CLC as opposed to the SRA “is increasing”, argued Patel, despite the apparent efforts of the SRA to lessen the regulatory burden.

Increasing a firms competitive edge as well as “a reduction in professional indemnity premiums” and “other financial benefits”, are among reasons for the increase, Patel elaborated.

Before making the change however, argued Patel, firms need to consider the “possible implications to Lender Panels”.

Goldsmith probed the panel about the biggest barriers to swapping regulators, asking whether the cost implications were a factor, and mentioning that firms required “6 years” runoff cover before switching. Kumar responded to Goldsmith outlining that the requirement for runoff was “being reviewed” by the CLC, and Passmore concurred that there were “ongoing discussions” at the SRA around the runoff requirement.

The second panel session of the day had been built to focus around the insurers perspective on the conveyancing market and included Richard Brown, Executive Director, Willis FINEX; Mark Carver, Partner, Miller Insurance Services LLP, John Kunzler, Head of FINPRO National, Marsh, and Steve Ray, Director, Howden Windsor. Carver kicked off the discussion by explaining the insurers view that “conveyancing is seen as high risk”, but continued, “conveyancing splits the market” as new insurers are “less conservative”.

Brown concurred, adding “conveyancing is not perceived as a

ML // Conveyancing Supplement 2016

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The Features

popular area to underwrite”, because of historical issues within the market where “large losses” had occurred.

Historical matters Insurers are more aware of core risks faced by conveyancers, such as cyber and other types of fraud, according to Ray, who added that practices need to demonstrate to insurers that they are operating “mature and sensible” businesses. Ray also reiterated the importance of firms selecting rated insurers, to which Kunzler added their security rating must be “A or better”. For firms with less than 10 partners though, Brown highlighted that they cannot simply use one broker, and a better approach would be to “talk to the right brokers for relevant markets”. It is the responsibility of brokers, argued Ray, to “point out markets they cannot access”, as insurers “don’t want to see firms shopping around every year”.

The discussion once again turned to the regulation of the sector, as Goldsmith questioned the panel around whether insurers have a different view if a firm is regulated by the SRA or the CLC. Brown responded explaining that if a firm changes regulators, their insurance history with the SRA “will be considered and examined”. Issues around runoff cover have caused issues for some firms, however Ray explained that there “are talks about reducing runoff from 6 years to 3” but that he “couldn’t see the point” in the potential reduction. Kunzler added that the current requirement exists for “public protection”.

Thanks from the Chairman It was with great pleasure that the Conveyancing Association held its Inaugural Conference in conjunction with Modern Law last December. As Chairman I was keen to provide a day where delegates across the house transfer sector could hear and discuss some of the major challenges facing the industry today - from lenders panels through to regulators of choice. The day provided just that forum and I believe all delegates went away better informed if not a little concerned about some of the more serious threats to their practices such as cyber fraud. All in all a very successful day and all thanks must go to Modern Law for their superb organisation and of course the Sponsors of the Conference.

Eddie Goldsmith, Partner, Goldsmith Williams.

ML // Conveyancing Supplement 2016

‘Practitioners would not be able to utilise their solicitor badge in their separate business, as this would imply the business was regulated by the SRA’ Andrew Hopper QC The Lenders panel session consisted of Paul Brett, Director of Business Development, Foundation Home Loans; Andrew Knee, Managing Director, Legal Marketing Services; Justin Parkinson, Managing Director, Decision First (Lender Exchange), and Philip Tebbatt, Chief Legal & Compliance Officer, Fleet Mortgages Limited. Whether firms can get on to and stay on lender panels has become a core issue to conveyancers and building and maintaining “a close relationship” is key, argued Tebbatt. Goldsmith further probed the panel further around what lenders look for when selecting panel firms, to which Tebbatt responded that a large proportion of firms “are not up to standard”, adding, if there are problems in a firm, they will be “found out” by lenders. Brett added that if this is the case, it can often by the lenders who “get the grief” from the intermediaries.

Parkinson continued the transparency theme, as he encouraged delegates to “be honest, tell the truth and quickly”. Concentrating on a common theme from throughout the day, he also added that fraud will become increasingly high on the agenda for lenders, and urged firms to ensure they have the correct “mechanisms and processes” in place to manage and protect themselves from fraud. Questions around regulation surfaced again and Knee clarified the lenders position, explaining that the “majority of lenders will take either SRA or CLC” regulated firms. Brett concluded the session by explaining that the industry now is “so much more online” and that legal entities will continue to “reap the benefits” of online applications, as well as arguing that the industry overall needs to “catch up” with this. Knee concurred, and reiterated the need to “work hard” to ensure lawyers and lenders “work better together”.

Into the mix New initiatives in the market have been a topic of much discussion of late and the penultimate panel had been put together to discuss some of these. The panel included Carol Harris, Head of BARCO; Andrew Hopper QC and John Kunzler, Head of FINPRO National, Marsh. Hopper began the discussion by covering the much talked about

The Features

‘separate business rule’, which lifts restrictions on solicitors owning other businesses. Hooper explained that the rule would only be used by those firms “in the middle” of the market, and that “practitioners would not be able to utilise their solicitor badge in their separate business, as this would imply the business was regulated by the SRA”. Hopper added that it was “unlikely” a purely Conveyancing practice would take advantage of the new rule, to which Goldsmith rebutted that a firm could do to provide wills as an “unregulated” area of the market.

BARCO – the escrow accounts scheme set up by the Bar, which offers solicitors use of a client account system and levies a fee of 2 per cent of the total legal costs of a transaction, was next on the agenda.

Spokesperson Harris explained that they wanted to become the “client fund handlers of choice”, a notion that was met with widespread criticism from delegates with some questioning why they would want to involve a third party in an already processheavy situation, believing the system had potential to complicate the process only further.

Kunzler argued in Harris’ favour as he explained that firms utilising this process might “find favour” with their PI insurers because there would be inherently “less risk” involved. Harris explained there could also be possible benefits in terms of due diligence, as BARCO have the capacity to check the source of funds before a transaction.

Hopper concluded the debate saying he was “troubled” by the concept that the BARCO system could reduce risk for practitioners, and that the scheme insinuated that solicitors “could not be trusted” to handle funds.

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‘Conveyancing firms are often a popular target for fraudsters, due to the types of data they hold and the types of transactions they undertake’ Mickaela Fox, Weightmans On the radar Two of the most talked about themes from the day – cyber risk and fraud – were explored in most depth by the final panel which consisted of Francis Dingwall, solicitor and partner, Legal Risk LLP; David Hallam, Commercial Director, NCC Group; Chris Harris, Managing Director, Lawyer Checker and Mickeala Fox, Partner, Weightmans. Fox began by explaining that “conveyancing firms are often a popular target for fraudsters, due to the types of data they hold and the types of transactions they undertake”.

She also highlighted that systems are often not robust enough to prevent attackers gaining entry, and that once they are in to a firms systems, they “use the information” to “orchestrate the attack”.

revealing that some of his clients had had “near misses” with fraud.

There is no doubt that the upturn in the conveyancing market has reignited a sense of opportunity for those willing to embrace the revitalised sector, but external challenges from government, regulators, and fraudsters still have the potential to plague a sector that has come through the depths of the recession. Conveyancers have proved themselves resilient over the years following 2008, and it’s clear the time to truly embrace that resilience, to survive and stay on top, is now.

Modern Law would like to thank everyone who attended and sponsored the conference.

Not all types of fraud are overtly complex however, explained Dingwall, who said often attacks on conveyancing firms are made simply via “emails, which cannot necessarily be trusted”. Fox agreed, and added that firms should consider taking out “bespoke cyber insurance policies”, and not just rely on their PII. As well as investing in the right types of insurance cover however, a firm must adopt a top-down approach to instilling the right culture, argued Hallam, who said they need to take “ownership” and consider utilising “bespoke testing” to decipher how robust protection strategies really are. Harris agreed, reiterating the need to “train staff”,

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ML // Conveyancing Supplement 2016

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The Features

15

Online Marketing Tips for Conveyancing Solicitors As more and more people head online to find legal services, solicitor firms need to make sure they have a strong online presence. In this article, Cordelia Oxley answers some key questions and offers practical advice.

What is “organic search” and how can I help get there?

This refers to the search results, not including adverts, which appear when you type something into a search engine like Google. As legal services are often searched for within a specific location, the most important piece of advice I can give is to check your Google Places entry. On the maps area of a search engine, your office should appear. If you haven’t already, you should “claim” your business and add some key information. The local results don’t even need a good website - you just need to be on there to be seen.

How can I improve our firm’s website?

Organic search looks at relevant websites, full of information which people will read and engage with.

An “engagement” could be someone completing an online form, or spending a long time reading articles.

A top tip would be to have a look at the structure of your website, to see how you can change the layout to best highlight your services. Is it clear what you offer on your homepage?

Have someone outside of the business look at your site and give their honest feedback.

What is PPC and should I be doing it?

PPC, or “pay per click”, describes the adverts you see when you search online. In the legal world, as with many service professions, competition is fierce, and costs are high. You can easily pay in the region of £5 a click for a generic term such as “conveyancing quote”. There are of course ways to make the clicks cheaper, for example by bidding on longer keywords, targeting by

location and building up your Quality Score. Before you get started with PPC however, make sure you have a website that allows people to find what they are looking for - otherwise your money could be wasted.

Should we use lead generation websites?

Many solicitors sign up for leads that come from other sites, ones that perform well in search results. This can be beneficial for both the solicitor and the client, however the solicitor still has to contact each lead in order to convert them into confirmed instructions. This can be time consuming, and can prove expensive if you don’t have the resource to contact each lead. Websites such as Homeward Legal work in a different way, taking away the burden of converting leads so the solicitors and conveyancers only receive confirmed instructions.

‘People expect to be able to see costs upfront, and may even look at a competitor’s site if they can’t see clear costs on yours’ Can our website generate business?

The situation is different for every solicitor firm, and not everyone will want their fees public, however there are ways that you be more transparent with potential clients. There is a tool called The Conveyancing Exchange, which allows conveyancing firms to set their own fee structures, and place a quote engine on their own website.

You can even opt for a sales team to address the leads that come through,

so that you only receive confirmed instructions. This type of tool can help to bring in new clients, and retain online visitors looking for a quick quote.

Should we be giving out our fees online?

More and more, people expect to be able to see costs upfront, and may even look at a competitor’s site if they can’t see clear costs on yours.

The trend of comparison sites and quote engines means that clients expect to get the information they need - instantly. Becoming part of a new comparison site like The Solicitor Finder means that you can appear for relevant searches people make within the site, based on factors such as location, price and ratings.

Where should I start?

A great way to get new conveyancing instructions through websites that already perform well online would be to join the Fitzalan Partners panel. Get in touch with PJ Singh on 0203 137 9599 or PJ@fitzalanpartners.co.uk.

To find out more about our new site The Solicitor Finder, contact me on cordelia@thesolicitorfinder.com.

You can read reviews from conveyancing solicitors on our website: www.fitzalanpartners.co.uk Cordelia Oxley is the Digital Marketing Manager at Fitzalan Partners, looking after their websites and online marketing. You can get in touch on 0203 745 6297 or cordelia@ fitzalanpartners.co.uk.

ML // Conveyancing Supplement 2016

16

The Features

being risk aware Mark Carver explains the insurer’s perspective on conveyancing risks, and outlines what conveyancers can do to reduce their exposure.

F

Conveyancing exposure, which in turn will lead to an increased insurance cost.

rom an insurance perspective, there is a general consensus of opinion amongst insurers and brokers alike - that Conveyancing is regarded as high risk.

Claim experience Such concerns are well founded, with Conveyancing contributing the most in respect of the number of notifications and ultimate claims payments. For instance, for the period from 2004 to 2011, claims statistics highlight that over 43% of professional indemnity notifications and over 70% of financial claims payments, at an average; incurred costs (damages plus defence costs) of £41,000 per claim.

Many commentators will argue that such claims experience was due to the impact of the global economic crisis, but that the Jackson reforms will have had a positive impact to claims experience from conveyancing, and as such the claims position will have improved since 2013 onwards. This argument is not supported by claims statistics however, which indicate that whilst 2013 did show significant improvement with 20% of notifications and 16.5% of incurred claims derived from conveyancing, such improvement appears to be short-term with notifications in 2014 increasing to 45% of all notifications and 70% of incurred. Furthermore, the value of conveyancing claims has significantly increased due to the impact of claims inflation as a result of the 40% increase in property values since 2004.

Solicitors Compensation Fund To get a true picture of the claims position, the claims experience of the Solicitors Compensation Fund, which is funded by contributions from all solicitors, and responds where the professional indemnity policy does not, should also be taken into account.

In addition to the claims payments made by insurers, the Solicitors Compensation Fund has made in excess of £56m in payments from 2013, of which (inevitably) a significant amount will be related to conveyancing.

ML // Conveyancing Supplement 2016

‘Early indications in the legal press indicate that conveyancers are preparing for another busy year. Whilst this is inevitably good from an income perspective, it must be remembered that this will result in increased insurance costs as insurers take account of the increased exposure’ How conveyancing has impacted insurer approaches Inevitably, this means that insurers will focus on conveyancing exposure. For solicitors, the impact can be seen in the underwriting strategy implemented by insurers, which ranges from the extreme approach of not considering any risk with a conveyancing exposure, to imposing an income cap. For all insurers, it is fair to say that they will apply a higher rate for

What is the insurance cost for conveyancing?

Whilst insurers will all apply different rates which reflect their underwriting appetite and claims experience, as a rough rule of thumb; we have observed that conveyancing attracts a base-rate in the region of 10%. This means that for every £10 earned from conveyancing, £1 will contribute to insurance costs. The number of properties sold in England and Wales was 38% greater in 2014 than in 2010 and early indications in the legal press indicate that conveyancers are preparing for another busy year. Whilst this is inevitably good from an income perspective, it must be remembered that this will result in increased insurance costs as insurers take account of the increased exposure.

How can solicitors manage their costs?

In theory, the professional indemnity market is just that, a market. With over 25 participating insurers, solicitors are not short of choice. Whilst unrated insurers should be discounted by conveyancers, there is plenty of choice for solicitors, no matter the size of practice. The most simple way for solicitors to manage costs is; seek an alternative quotation.

At the very least this will enable them to make an informed decision. There are often very valid reasons for continuity of insurer, however, it is worth remembering that continuity is two way and should be rewarded by insurers.

Since the SRA abolished the common renewal date in 2013, an increasing feature of the insurance market has been the offering of early renewals, mid-term policy extensions and 18 month policies. If you are expecting your conveyancing income to increase then it would be prudent to take advantage of such offers to provide premium stability in the face of potentially increased exposure.

The Features

17

‘Whilst it would be naïve to suggest that premium costs should not be a key consideration, for the prudent firm, the focus should also be on how to reduce and manage risk’ Insurance and risk management For many insurers, brokers and indeed solicitors, professional indemnity insurance is no more than an annual transaction focussing solely on premium. Whilst it would be naïve to suggest that premium costs should not be a key consideration, for the prudent firm, the focus should also be on how to reduce and manage risk. Indeed, risk management is central to the majority of insurers underwriting approaches and has been embraced by the profession, with statistics indicating that 98% of firms (on paper at least) have what would be considered to be good risk management practices.

Whilst statistics do not exist in respect of the quality of risk management for the period from 2000 to 2007, anecdotal commentary highlights that most brokers and insurers believe that risk management has greatly improved across the profession since the advent of the open market in 2000.

Has risk management worked for conveyancers?

A comparison of conveyancing claims statistics provides an indication as to whether risk management has worked or otherwise. Unfortunately this indicates that the number of notifications is consistent. For example; in the period from 2000 to 2004 (where in general terms it is acknowledged that risk management was variable), conveyancing accounted for 34% of notifications, which in 2014 have increased to 45% of all notifications. This is really a case of being a ‘glass half full or a glass half empty’. On the one hand, it could be argued that the number of notifications would have been greater without risk management, but on the other, that risk management has not had a material impact in respect of reducing claims.

What can conveyancers do to reduce risk?

We are certainly not arguing that risk management is irrelevant and not advocating that risk management should be ignored. Rather, our suggestion is that there are other factors which conveyancers should be aware of, which we believe will have a positive impact on the management of conveyancing risk.

Risk and reward We have long argued that at the heart of the problem for conveyancers is the concept of ‘risk and reward’. Whilst we recognise business pressure and the extremely competitive nature of the conveyancing market, from a risk perspective, the reality is that the fees generated from conveyancing bear little resemblance to the risk assumed. For example, the Post Office Money and the Centre for Economics and Business Research recently published that the average conveyancing fee in 2014 was £1,419 which, when inflation is taken into account, is less than the figure charged in 2004. Not only are conveyancers getting paid less than 10 years ago, due to the increase in property values by 39% (Average UK property increase), the risk that they assume has increased.

Clearly insurance cannot solve this problem, however, we do believe that insurers should increasingly look at the average conveyancing fee, with those firms that can demonstrate above average fees being rewarded for less risk assumed on the basis that they are undertaking less work.

Experience and resourcing Following on from and relating to the above, our view is that those firms which manage their workload, supervise staff and retain experienced conveyancers will reduce the risk of conveyancing claims. With the low cost and cyclical nature of the property market, it is understandably difficult to justify the investment in experience. A key error for many is they assume that conveyancing is simply a form filling exercise.

The reality is different, with every conveyance having its own characteristics, as every property and client is different.

Many of the claims arising from conveyancing were the result of poor working practices and inadequate supervision. So whilst using less experienced practitioners is necessary to compete, to assist in the management of risk. Conveyancers should not ignore the necessity for continuous training in respect of legal and regulatory issues, implement a system of best practice and proactive supervision by an experienced conveyancer and ensure that the conveyancing process is methodical with appropriate checks.

Acting for the lender In the vast majority of conveyances, the conveyancer acts for both the buyer and the lender in the same transaction and, as such, the lender is also a client. In acting for the lender, the conveyancer will have to comply with the Council for Mortgage Lenders (CML) Handbook. The CML Handbook is essentially a set of requirements or instructions, which in short must be complied with. Given that lender claims account for a significant amount of conveyancing notifications, from a risk management perspective it is prudent to have the relevant procedures and checks in place to ensure that such requirements are indeed complied with.

Given that the CML handbook is split into two, with the second part relating to specific instructions of the individual lender, it is apparent from a risk perspective that this should be centrally controlled and monitored for compliance purposes. In our opinion, without such controls in place, the conveyancer could inadvertently breach such requirements.

It follows that the more controlled (or less) panels the conveyancer is on, the lower the risk.

Insurance and conveyancing Conveyancing always has, and always will present increased risk to solicitors practices and insurers alike when compared with other areas of work. For the prudent conveyancer, existing risk management procedures should be complemented with a focus on the appropriate level of fees, the experience and supervision of staff and compliance with the requirements of the CML Handbook.

Mark Carver is a Professional Indemnity Consultant at Miller Insurance Services LLP.

ML // Conveyancing Supplement 2016

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The Features

19

AN INNOVATIVE APPROACH TO CONVEYANCING SEARCHES Lisa Summerton and Andrew Stenning outline how to inject an innovative approach to the searches process.

P

rocessing conveyancing searches is an integral part of any house purchase and highly important for compliant solicitors, and licensed conveyancers to carry out as part of their due diligence checks.

With an abundance of conveyancing searches to choose from it becomes increasingly difficult to select the products relevant to each property, as specialist information is sometimes necessary depending on its location.

Searches UK provide a wide range of residential and commercial conveyancing searches in partnership with leading experts such as Groundsure, Landmark, DevAssist, Terrafirma and Future Climate Info. Their portfolio of products include local authority, environmental, flood, planning, mining, ground stability and chancel reports.

To streamline this process for solicitors and licensed conveyancers Searches UK’s intuitive online ordering platform will recommend searches relevant to the property or, piece of land based on 15 potential hazard alerts.

Minimising risks Furthermore, to help minimise risk on case files the system not only recommends key products but will also intuitively select the correct tier and cost for the product depending on the size of the property or land.

Less time can also be spent on plotting the area or property in question as the ordering platform is linked to the Land Registry so the boundary for the property will automatically be mapped provided the property or land is registered with them.

Lisa Summerton, Sales & Marketing Director, at Searches UK said: “Searches UK are at the forefront of the conveyancing search market and continually research the industry to bring the latest products and services to our clients. We work in collaboration with experts in the field and introduce new products and services to the market with their support.”

New and innovative search products continue to enter the market and Searches UK are often approached

in the first instance due to their leadership in the market to launch these to clients alongside the experts which designed them.

On the horizon By way of example, local mining experts, Terrafirma, chose Searches UK as the first search provider to launch their range of unique and in depth threetiered search reports which screen past, present and future risk from over 35 minerals extracted across England & Wales - risks such as fracking, coal, metalliferous, chalk, limestone and clay.

Additional launches are scheduled

by Searches UK for the coming year in association with MoveIT and Property Detective. Visit www.searchesuk.co.uk for more information or monitor our social media channels to keep up to date with new product releases.

Alongside the aforementioned, Searches UK also regard client feedback as extremely important so, with this attitude and commitment to their clients, they brought the first reimbursement scheme to the market in 2013– Buyer Protect.

In the event of a failed property purchase, homebuyers can reclaim the money spent on covering solicitor’s fees, mortgage broker fees, valuation fees and product and booking fees up to the value of £2,050 if Buyer Protect was added to their search order.

Buyer Protect is offered to all clients processing orders through Searches UK but this product must have first been added to their search order to be able to benefit from the scheme.

Quality is King As a quality business and leader in the sector, Searches UK were acquired by Fitzalan Partners, part of NAHL Group plc. With their client’s best interests at the core of how they function, the new acquisition will strengthen the business, creating future growth opportunities and resources to enhance the client’s experience of their service.

Searches UK will operate as normal with the same highly experienced and friendly team, streamlined processes and fantastic service whilst as ever seeking new ways to enhance and improve its service to its clients.

Andrew Stenning, Managing Director, at Searches UK commented: “It is a very exciting time for our clients, team and business; we are treading in new territory with the aim of making further improvements to the way our business is run to ultimately benefit our clients. The business will function in the same way and I would like to take this opportunity to reassure our clients that there are lots of great positives as a result of this change.”

Fitzalan Partners is an online marketing specialist focused on the conveyancing and property sector through five internet brands: Fridaysmove, In-Deed, Homeward Legal, Best Value Conveyancing and Surveyor Local.

NAHL Group plc is listed on AIM and is parent company of National Accident Helpline, a leading UK consumer marketing business focused on the personal injury market, Bush & Company Rehabilitation, operating in the catastrophic injuries market and Fitzalan Partners.

For more information about any of the products and services from Searches UK visit their website and follow them on Facebook, Twitter, LinkedIn or Google+. Alternatively call them directly on 0800 043 1815 or email them at info@searchesuk.co.uk to speak to one of their dedicated team today.

Andrew Stenning is Managing Director of Searches UK and Lisa Summerton is Sales & Marketing Director at Searches UK.

ML // Conveyancing Supplement 2016

20

The Features

Lender Panels – friend or foe?

Justin Parkinson considers what lenders look for when accepting firms on to their panels, and outlines the questions law firms should consider during the conveyancing process to protect themselves from potential fraud.

O

ver the last 15 years or so, lenders have sought to restrict the law firms they need to deal with on remortgage cases. This was, in part, to contain the costs and make the process of remortgaging more appealing to home owners, but no doubt a big part of the attraction was to control the way the work was carried out and require firms to maintain efficient processes. So, has the efficiency of conveyancing improved as a whole? Well, to a fashion, yes, but restricting customer choice (of legal services) is only an option where the remortgage fees are free, and fees to lawyers are fixed and controllable. So could the same apply with sale/purchase cases?

Remortgaging inherently carries less risk; the due diligence on the property would have been carried out when the property was first purchased and the owners would be known (at least to the bank they are currently borrowing from). Regardless, those remortgaging will have detailed due diligence carried out against them during the process, not least to ensure they can continue to afford the new mortgage.

However, sale/purchase conveyancing is much more risky as it involves the transfer of large sums and a substantial asset – the home itself. Those buying need security and protection to ensure the property is fit for purpose (which poses the question often asked: ‘Why don’t lenders require a survey on each purchase, rather than just seek a basic valuation?’). They also need comfort and security that the property’s surrounding risks are proportionate or within their expectations, and not likely to present problems later down the line. With organisations providing all manner of due diligence searches, such as SearchFlow, and legal indemnity products available from providers like First Title, the property itself is pretty secure.

ML // Conveyancing Supplement 2016

‘Lenders put a lot of value in ensuring a wide choice of suppliers for legal services, but with such choice comes a significant cost to manage and maintain it’ Who is exposed to risks?

It’s only right then, that those exposed to the risks (the buyer) can select someone they trust to act for them. It’s also important to lenders that they can place their trust in a lawyer to act not only in the interests of the borrower, but also in the interests of the lender itself. Lenders put a lot of value in ensuring a wide choice of suppliers for legal services, but with such choice comes a significant cost to manage and maintain it.

We can’t pity the lenders too much (especially in light of the economic issues

of the last decade) but they do seem to get it from all angles: governments telling them to lend more; regulators telling them to be more prudent; consumers who live by the ‘bigger is better’ mantra and so push themselves to the lending limit. What is the lender to do? By far the most influential in a lender policy making decisions is the regulator and back in 2010 the FCA (then FSA) made it clear that lenders simply must do more to satisfy themselves of the capability of the suppliers they work with, be they lawyers, brokers or valuers. The problems that come with such an edict is the sheer cost of due diligence, and the fact that the

The Features

effort and costs are duplicated by each lender who wants to work with the same law firm or broker. I certainly pitied the law firms applying to the various lenders who their clients borrow from, and the endless manual forms they had to endure as part of the process!

Fast-forward 3 years and through Lender Exchange, there is finally an ability for lawyers to be validated once at ‘take on’, for all lenders to rely on the information and detail, but only if the information, insurance and accreditation/regulation remains up to date. And whilst the data sought by lenders is extensive, it’s entirely relative to the risk being carried in property transactions.

Over the last few years, we’ve worked hard to make it easier for law firms to apply to lenders and maintain their membership status, by providing all lenders with easy, free and secure access to the detailed information provided by firms. And once the data is with us, law firms have said how delighted they’ve been with the ease of accessing other lenders as they come on board.

We’re often asked what lenders need and what they look for in accepting firms onto their panels, and whilst they each have different criteria and risk ranking, there are a number of simple things they all look for: • Honesty: if problems have arisen, declare them and what has been done to resolve them. Don’t attempt to hide them in the hope that the lender won’t find out.

• Accuracy and currency of data: when changes occur, lenders need to know, the moment they occur, not weeks or months later. We’ll shortly be rolling out some functionality to assist in reminding firms to keep lenders informed of any changes by means of a small number of questions, every 90 days, which should act as a prompt to ensure the information held is the most current.

• Diligence: doing the job properly and efficiently. Whether it be in confirming the identity and probity of sellers/buyers, or ensuring that charges are registered as quickly as possible. Lawyers are the last line of defence; if anything looks wrong, it may well be! Question everything; is the person bona fide? Could this be a fraudster? Always check the client accounts you’ve been given in Lender Exchange - it’s free and it confirms that the account you’ve

21

‘Whilst the data sought by lenders is extensive, it’s entirely relative to the risk being carried in property transactions’ been given is the one in use by lenders. If they’re not confirmed, ask the firm on the other side for more detail, or for the correct account details and check again.

• Communication on progress or issues: in any working partnership, and the lender/lawyer relationship is just that, communication is key.

In today’s highly electronic age, lenders and their customers demand information and the more they get, the more they crave. With the property chains that exist in our housing market, lenders need to know that cases are being picked up quickly and customers insist on being kept up to date every step of the way – they are often juggling a number of things (loans, removals, sale of a property, builders, change in job, a new baby, a new relationship) all of which carry their own bucket load of stress and worry.

We hear time and time again that fraudsters are extremely clever.

Inventive? Yes! Creative? Certainly!

But clever? Not usually, no. We’re

‘By far the most influential in a lender policy making decisions is the regulator’ conditioned (on the whole) to think the best in people and not expect the worst.

So fraudsters look for the tiny gaps in the process that are easy to get into and exploit them until they are finally closed. If each point in the process took care to ensure they were satisfied of the authenticity and probity of the individuals they were dealing with, and always ask the obvious questions, the volume of fraud would plummet: • How certain is the estate agent that the ‘seller’ is who they say, and that they actually own the house?

• How certain is the surveyor/valuer that the seller is indeed such?

• How certain is the lender of the disposable income of the buyer?

• How certain is the lawyer on the ‘other’ side that the client account

details they’ve been given are correct?

• Can I always trust what I read in an email?

• How certain is the lawyer that the mortgage type matches the property use?

• How certain is anyone that the email sender if bone fide?

So what’s next and how are we at Decision First helping lenders (and lawyers) to combat the fraudsters?

We’ve been working with lenders on a series of developments, all of which lend themselves to tightening up and securing the processes.

• Vendor Law Firm Search, to confirm bank details; it’s available to all law firms on Lender Exchange and it’s free.

• Regular reminders to update the system on law firm information; due within the coming months.

• Issuing of offers and associated documents securely, directly to law firms from lenders; we do this now for one lender and we’re working on expanding its use for others.

• Secure redemption statement requests and receipt; whilst many lenders can now offer a web request, it would be much easier for law firms if there was one place to do this.

Returning them securely, directly into the inboxes of the lawyer has got to be more efficient.

But we haven’t stopped there. We’ve been looking at increasing security through digital authentication, and how we could work with other bodies and organisations, be they regulators, or trade bodies to bring forward a standard for digital signatures, or with PI providers to reduce the impact on firms in obtaining quotations for cover each year.

Justin Parkinson is the Managing Director of Decision First, who operates the Lender Exchange. Justin has been involved in conveyancing for some 13 years and prior to this he worked in business consultancies and large scale IT service providers crafting business processes and IT solutions for blue-chip clients, many of whom were financial institutions.

ML // Conveyancing Supplement 2016

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The Features

23

Buying, selling, re-mortgaging… it shouldn’t be a slog Property practitioners are often in the spotlight, or are at least the subject of dinner table conversations. Darren Gower explains why.

U

sually, and unfortunately, property practitioners are in the spotlight for the wrong reasons - slowness of progression, a lack of communication, etc - all things that will ring a bell to anybody who has bought, sold or remortgaged. Of course, any frustrations or mismatched expectations are magnified because property transactions are huge events - if not to the rest of the world, then always to the customer(s) at the centre of it – regardless of the scale of monies involved.

and left everyone’s blood pressure somewhere near a normal state.

• At the end of the case, I was sent a huge stack of paperwork (again… although some of course could be viewed as a necessity) and a client satisfaction survey. Nice touch regarding the survey, but it was paper based. Meaning that I had to summon the energy to find a pen, put my thoughts on paper, find an envelope and a stamp, and take everything to the postbox. Unsurprisingly, I did not bother.

But do we just have to accept that frustrations are inevitable?

A frustrating process Well…my recent personal experience with a remortgage highlighted areas of frustration, but also held a light up to just how easy it is to remove these frustrations altogether.

My transaction was technically sound, no errors, all completed properly and in accordance with legal obligations.

But my overall experience was punctuated by niggles and thoughts of “why on earth is it done like this?” The property sector has access to a vast array of technologies and case management solutions that can provide a much slicker and higher quality experience for the customer.

And with a good experience comes recommendations, resulting in more business for the property practitioner.

Let me highlight a few key points during my own remortgage journey: • Right at the start of the file, after engaging the conveyancer via email (a good start), what appears on my doormat a couple of days later? A huge A4 slab of paperwork requesting details including address, names, date of births, etc. Standard stuff, agreed. But all this data had already been provided right up front when engaging the firm.

Wouldn’t it have been neater to electronically capture my details at the outset and re-use these to

‘At a time when cutting the fat from processes, saving time and money, and leaving customers happy is vital – some firms are still not really getting it’ pre-populate any documentation I receive moving forward? Rather than demand duplication? And instead of lumbering me with a pile of paperwork (expensive to produce and send for the conveyancer too), why not allow me to complete a few online forms in a web browser? Kinder to me, kinder to trees, and easy then for the data entered to be seamlessly – and without human input – sucked into a case management system at the conveyancer’s end.

Everybody wins, surely.

• Throughout the case, I was only updated if and when I needed to know something. Ok, fine you might say – that could certainly be described as efficient. But if I did need to know something (and I did), I had to pester my conveyancer by email and phone to get a response.

Had I been given access to a simple online area where I could see what the current status of my matter was, I would no doubt have penned far fewer brusque emails

Had I been given the option to complete a brief online form, then I would have absolutely provided my views and comments. Even a simple text message to my phone asking for a score of 1-10 would have received a response. A missed opportunity.

And upselling at the end…was I offered a will, financial advice, a handy reminder to call them should I have employment or family issues (this was a high-street firm, active in all these areas of work)? No, I was not. Again, a quick email to me, or the offer to complete an online form, would have been nice, and of value to the practice’s marketing efforts.

Opportunity lost At a time when cutting the fat from processes, saving time and money, and leaving customers happy is vital – some firms are still not really getting it. Don’t misunderstand, no disasters occurred during my transaction, but overall feelings of frustration and lethargy are hard to forget.

There is huge opportunity for those that embrace technology and the overall value of the customer journey, and of course more repeat or recommended business!

Darren Gower is Marketing Director at Eclipse Legal Systems, part of Capita Plc. www.eclipselegal.co.uk

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The Features

Beyond the shop window It is reported that out of 4,500 home movers just 13% choose the cheapest conveyancer. Contrary to popular belief, consumers are more focussed and now looking for quality and are more likely to instruct on recommendation, as Lisa Beale explains.

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any comments from participants nearly all agreed that price was very much a secondary consideration.

It appeared the more the discussion continued, good old-fashioned customer service was a higher priority and good communication appeared to be the number one priority.

It would seem that consumers search for Legal Services and may contact a Solicitor to ask a variety of questions, but it is assumed that price is the key question, when really asking the right questions and striking up a rapour with a prospective client, could put the client at ease, hence giving a tick on the communication sought.

We are extremely aware that clients’ who are well informed by being able to read previous client reviews, understand that client’s feedback is valued by the practice they are reviewing, which then provides confidence and the reassurance they are seeking. This is a well-balanced, winning formula.

Dressing the shop window Consumers are becoming increasingly aware of how dressing a shop window can be inviting to lure in prospective clients, but the question most are demanding answers to is, what my experience will be and what is the quality of the service offered?

Following on from the success of checkatrade.com, now in its 18th year, we started to receive enquiries from people, searching for services such as Solicitors and it became clear that the need for a similar service for professionals was needed, especially for Legal Services.

For some it may well seem a strange idea to embark on offering a similar credibility tool, which works for trades to professionals, especially for those who are regulated, but we soon found out that many consumers did not contact a regulator to enquire, and those who did received very limited information. After meeting with regulators, who were of course

ML // Conveyancing Supplement 2016

‘Eager and forward thinking practices will lead the way and will be rewarded by clients welcoming them for providing them with a more informed choice they are now’ inquisitive and full of questions, many agreed with our findings and could see how the site would benefit.

We have been dealing with consumers searching for recommendations since 1998, we know what they are seeking, which is quite simply, free information on transparent firms, who value client feedback. We don’t need to furnish them with how, or what is involved in a divorce case, or what a Surveyor will need access to, but they do appreciate that we have checked some vital business information, which they are not always aware is required.

It is often assumed that clients searching for trades, holidays, or similar

services, may not be clients requiring legal representation, or the type of clients a law firm may be looking to attract, but how wrong this assumption is. Those searching for a bargain and not too concerned about the service, will often search the free ads, or for headline offers. Whilst many visitors to websites who provide profile details and previous client experiences, are visited by clients who have money they wish to spend, but wish to make sure that the person, or firm whose services they are looking to engage, will provide them with the service they expect. By providing an independent and verified overview of your practice, along with testimonials from your previous clients, you are providing prospective clients with a more informed choice, showing transparency and how you value them and their need to see this information.

Well known or not!

There is also the question of whether a large firm needs to be party to independent profiles and reviews. Big or small, well known or not, clients will soon wonder why they cannot find the information they are searching for. The public have (over the years) found that many larger, well known firms, have placed profits in front of service, or been reported to be taking advantage of the tax loopholes in the UK. There have also sadly been reports on those we once looked up to, who have been found to have been involved in expenses fraud, or other similar activities. The result is that it has left society with a bitter taste, where trust is questioned and the ‘My word is my bond,’ kind of trust for many professions has well and truly disappeared. With reports such as these, maybe providing transparency is not a case of large or small and should not be disregarded.

Competitors, in Legal Services!

It appears that now there are many varying providers of Legal Services,

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‘Many regulators, along with the SRA are very much behind the need to bring clarity to consumers to assist them when searching for Legal Services’ including those which are fast becoming like puppy farms, faceless and unaccountable. This may be seen by some as the modern way forward, however for some the customer service and quality of this service is sadly lacking. We recently heard from a client of an estate agent, who recommended (I use this term loosely), a factory type of conveyancers. The client was selling her property, after the eleventh week, the client had spoken with over 30 different people who had not returned her call, not one member of the company appeared accountable for the lack of service. The general quality of service was abysmal.

Businesses have to make a living and therefore, have to place themselves in front of their prospective clients, if they don’t, then their competitors will. If a business offers good quality service and remembers that it is important to look after and maintain customer relations, then they should be looking to shout this from the rooftops. Clients seek out these qualities, but if they are only able to find factory firms, offering bundles of promises, but no previous client track record, this leaves them open to abuse. Make your firm stand out from the others!

What are the expectations?

You can choose to stick your head in the sand and wait of course!

Consumers can read reviews and compare many products and service providers nowadays, such as, holidays, trades and insurance products, to name but a few. Unfortunately, for

some the temptation to be a follower is the easy option: why be different? In years gone by this was acceptable and almost the norm, however nowadays being different may be the only way to get in front of your prospective clients.

Eager and forward thinking practices will lead the way and will be rewarded by clients welcoming them for providing them with a more informed choice they are now seeking. We have met with a few regulators now, one being the SRA in 2013, where we also signed up to the, Law Firm comparison sites’ new standards to help consumers get a better deal http://www.sra.org.uk/ sra/news/press/comparison-sites-helpfor-consumers.page.

Many regulators, along with the SRA are very much behind the to need bring clarity to consumers to assist them when searching for Legal Services, so this is very much just the beginning.

It is important to understand that prospective clients are interested in the customer service journey, however pricing and whether a case was won or lost, is subjective, so we do not request feedback regarding this, or allow pricing to be displayed on our site. The site and information available is set to contain verified, transparent information, which we hear from our existing members is helping them convert enquiries, as they are able to provide them with independent trust.

What our members have to say “Every year we plan on what innovations we can come up with to

better serve the client. What other differences, apart from the legal advice we give, can we provide? We learnt many years ago that listening to our clients and understanding their perception of our service was more important than our perception. We regularly sent out surveys both during and after the transaction to find out what our clients really feel about our service. Good or bad. We still do this, but last year we went further.

We decided to give an open forum to reviews from the internet. We consulted various other solicitors to ask their view. Like us, they had their reservations. What if the review they give is bad? What then? We deliberated and finally took the plunge when we visited Checkaprofessional at an exhibition stand. We listened to their talk and tentatively approached the speaker. For us the likes of Checkaprofessional is working and we have no intention of changing from this more open form of communication with our clients.”

A. Piccirillo - AVRillo Solicitors “We decided to join Checkaprofessional.com because we were aware of the success of Checkatrade and we felt that the concept of clients providing feedback regarding the service that they had received would work equally well with professionals.

It has raised our profile and additionally we feel that it shows to our clients that we are confident that we provide a good service. We also like the fact that we can easily tweet positive feedback on Twitter via the Checkaprofessional.com website.”

Grant Parker - Russell & Co Solicitors Lisa Beale is Head of Checkaprofessional.com Place your practice with a brand which receives over 1.1 million visits per month and has received over 2,198,600 recommendations for our members, making our brand the leaders in the review industry for you and your clients.

Call 0800 093 8414 for more information.

ML // Conveyancing Supplement 2016

conveyancing is moving on Times change – so why do systems and processes seem to stay the same? You know there must be ways of saving yourself hassle and making your work easier, it’s just that someone needs to make those things real. That’s where we come in.

InfoTrack is a service provider that’s challenging the norm so that conveyancing can evolve. With us, you can carry out all your key tasks – including Searches, SDLT Submissions and AP1 Transfers – within a single website.

Times change – and we’re driving those changes, for you.

Land Registry

Searches

To move on with InfoTrack, visit infotrack.co.uk/movingon or call 020 7922 5777

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AP1

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Changing for the better Conveyancing services provider InfoTrack is challenging the norm and helping the industry evolve. CEO Scott Bozinis takes a look at how changes are taking place and what makes them effective.

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t’s amazing how often the word “innovation” is used these days. So many products are launched alongside a promise that they’re truly innovative.

Some products make it, some don’t, and the successful ones tend to be those that really deliver easy and useful solutions to the end user.

To really achieve success, technology businesses often need to speculate and try something different, and in a legal practice, this can potentially be pushed right down the list of priorities.

Everyone’s busy, workloads are heavy and there are external industry factors creating concern.

For example, 2016 is likely to see conveyancers face issues like land registry privatisation while the removal of CPD points will also impact on how law firms operate. In the meantime, and with these issues ultimately outside your control, everyday life goes on without any real change.

But things have to change at some point and we are starting to see the areas where that’s beginning to happen.

Making a difference Tony Angel, co-chairman of DLA Piper, was recently reported as saying that “there is no doubt at all” that business services professionals will become more and more important over the next 10 years. He points out that they “can be very powerful enablers and differentiators for a law firm.”

In other words, there are service providers who are trying to make a difference and be innovative. But the “future innovation” label is something which, in reality, is actually a few years down the line when it comes to conveyancing and firms need to be careful

‘Firms need to be careful that their investment in innovation doesn’t mean taking their eyes off what needs to happen in the here and now’

‘While a certain amount of disruption is a good thing, too much of it leads to frustration and disengagement so, we think it’s better for the industry to move on and evolve where it can’ that their investment in innovation doesn’t mean taking their eyes off what needs to happen in the here and now.

Here, we come back to those points about easy and useful changes– changes that are innovative but needn’t be revolutionary. Someone coming in and completely turning conveyancing upside down is highly likely to be disruptive. While a certain amount of disruption is a good thing, too much of it leads to frustration and disengagement so, we think it’s better for the industry to move on and evolve where it can.

After all, external factors like the removal of CPD points are happening.

Interest rates will go up, down or stay the same but the home buying process isn’t likely to change quickly.

As a conveyancer, the common theme is that these factors aren’t within your full control. But other things are – including the systems and processes that you work with day in day out.

Challenging the norm InfoTrack understands how important it is to ensure we deal in easy to use, smart technology. People are used to using simple and smart tech for all manner of tasks including banking, online shopping and other leisure activities, all of which have evolved over the last 20 years.

That ease of use must translate into workplaces, including in conveyancing.

There’s a real need for platforms to evolve into something that’s actually enjoyable to use and is useful in as much as work is completed quickly and effectively.

Opening our office in July, we wanted to challenge traditional working practices

so that conveyancing could move on.

We have introduced a platform that’s easy to switch to, simple to use and starts delivering benefits immediately.

Conveyancing can be a complicated task with tight timings, so the supporting technology needs to meet those three requirements at the very minimum.

Referring back to Tony Angel’s point for a minute, conveyancers need service partners more than they need just a search provider if they are to achieve positive changes to workloads, efficiencies and profitability. It’s achievable when using a single platform to perform all the relevant tasks including Land Registry Searches, Conveyancing Searches, SDLT Submissions and AP1 Transfers. Put simply, using a service provider will make your life easier – and we definitely think it meets the definition of effective innovation.

But while we’re challenging the norm to ensure conveyancing evolves, change truly begins with conveyancers themselves. Wanting to improve the way you or your firm works is natural and all it takes is the drive to make it happen.

As I’ve mentioned, some things are outside conveyancers’ control but there are ways in which everything can change for the better; by looking at what you currently do, what you need to do and taking on the challenge of achieving it.

Trust me, it’s easier than you think.

Scott Bozinis is CEO of InfoTrack.

For more information please visit our website www.infotrack.co.uk or call us on 020 7922 5777.

ML // Conveyancing Supplement 2016

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The Features

Cyber Crime – Who is to blame?

Mickaela Fox asks whether fraudsters are becoming more sophisticated in their targeting of law firms, and considers who should be held accountable when fraudsters strike.

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fundamental client obligations, unless it begins to treat information security throughout its workforce as a priority.

This not only means ensuring that all staff are trained and that the firm’s information management and security policies are policed, but also that staff are made aware of the ever changing methods deployed by cyber criminals to trick them into handing over confidential information.

he answer depends on whom you ask. Law firms are considered to be the soft underbelly in the fight against cybercrime. If you ask the Banks, they will say that law firms are the chink in the armour against the growing barrage of cyber attacks but then some might argue that they would say that. Banks have come in for criticism for inadequate account opening procedures, for failing to devise new rules and safeguards for online bank transfers and, for failing to work quick enough to mitigate the effects of fraud. Indeed, it was not that long ago that some amongst their number did not operate a 24-hour fraud reporting line. Law firms who are currently besieged by cyber criminals will doubtlessly say that they are the victims of cyber crime but with attacks reaching unprecedented levels, are they entirely blameless?

The new permanent threat?

Cybercrime has become a regular feature in the daily life of a law firm, a permanent story in the press and top of the SRA’s list of threats to the business of a law firm. Is it not then becoming harder for the profession to deny culpability for breaches of their information security? Their professional indemnity insurers would say so.

Last week saw the publication of IS Decisions’ report on information security in the legal sector in the UK and US, Legal & Law Enforcement: Information Access Compliance. It does not make for gratifying reading.

According to research conducted by the software provider, a significant proportion of UK law firms are

failing to meet what are described as relatively minimal regulatory standards and whilst it is readily accepted that the greatest risk to a law firm security is its workforce, 55% of law firms in the UK do not provide any security training.

IS Decisions comment: “Many external breaches occur irrespective of how strong the perimeter fences, firewall and antivirus tools are because of employees who suffer a lapse in judgment or who are oblivious to good IT security practices.”

As the custodians of confidential trade secrets, sensitive personal data and in some instances significant amounts of client money, the profession cannot discharge its

‘Cybercrime has become a regular feature in the daily life of a law firm, a permanent story in the press and top of the SRA’s list of threats to the business of a law firm’

ML // Conveyancing Supplement 2016

Nothing new This year began with yet another news report of wannabe homeowners losing out on their dream home because they were tricked into sending the deposit monies to a fraudster. The scam involved the fraudster monitoring emails between the law firm and the homebuyers for an opportune moment to step in and seize the buyers’ cash. When that moment arose, the fraudster sent an email to the buyers purporting to be from the law firm, requesting that the deposit monies were sent to a new account, which was not the solicitor’s account but an account connected to the fraudster.

The headline screamed “new scam” but the scam is not new. Fraudsters have been using the same MO, with some subtle changes, for over 18 months and with great effect. But how can that be when the SRA has for months now, been reporting similar attacks on law firms and considerable losses as a result? How, when the SRA and Law Society have been advising firms to change the way they deal with electronic cash transfers from clients by, for instance, warning the client at the point when instructions are taken that the firm would never send an email asking them to make a cash transfer to an alternative bank account?

In the case in question, it appears that the fraudster gained access to email traffic between the law firm and the homebuyers by hacking into the buyers’ computers, but that ought to have

The Features

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‘The profession needs to get smarter, do better and be ready and quick to adapt their practices and procedures to keep pace with the ever more sophisticated methods adopted by fraudsters’ been small consolation to the law firm whose clients have been left devastated by the incident, particularly if a simple change to the firm’s practice when the clients’ instructions were incepted could have prevented the loss. This is mere speculation of course. However, what is clear from stories of this nature and from the research conducted by IS Decisions is that the profession needs to get smarter, do better and be ready and quick to adapt their practices and procedures to keep pace with the ever more sophisticated methods adopted by fraudsters to achieve their aims. It will not be enough to implement safeguards that were being advocated by the regulator, and/or the Law Society or by specialist advisors last year, as those safeguards were advised in light of attacks that were taking place last year. Those attacks are still happening – because there are still law firms who have yet to act or who have acted, but their employees are unaware of the firm’s security policies. As fraudsters find their efforts thwarted they are and will continue to devise new methodologies to meet their aims.

Where does the fault lie?

We have all read the reports about firms being threatened with intervention and the thankfully very few cases involving loss of the solicitor’s practice as a result of cyber-attacks, notwithstanding that the losses sustained were, at least, in principal indemnified under the firm’s professional indemnity insurance. Not all losses are, and with cybercrime against the profession becoming increasingly endemic, professional indemnity insurers are looking ever closer at where fault lies before confirming indemnity and some are calling for changes to the PII Minimum Terms and Conditions to remove cover altogether.

The message is: it is time for the profession to act or face more losses, claims and firm closures as a result of cyber attacks.

Mickaela Fox is a Partner at Weightmans Solicitors.

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The Features

A sea change for the conveyancing sector This year we could see the most significant change in generations for the conveyancing sector. Maud Rousseau, Group Marketing and Communications Director at SearchFlow, explains.

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ith the advancement of agile technology and big data analytics, search companies are seizing upon the opportunities to drive through major changes. Data and technology providers are working together to create a one-stop-shop to not only streamline the process but help improve risk management.

Data providers are becoming increasingly more sophisticated in their mapping and identification of areas of risk, reducing any likelihood that potential problems will be overlooked.

With data held in private cloud based systems, search providers are now integrating data from multiple sources to deliver a sophisticated risk profiling service to automatically notify the user if there is a potential area of risk which requires further attention.

Setting new standards At SearchFlow, we have already launched new products that will enable efficiencies and are very excited about our schedule to bring further products to market this year. For example, our recently launched Personal Search Report with unique data insight and risk analysis will aid compliance and save time spent on due diligence. With inbuilt quality assurance checks it ensures the personal searches are the most accurate and sets a new standard in local authority searching.

We have also been working with our group partner, Landmark Information Group to launch the environmental report, Risk View Residential. The report analyses four key environmental factors in one document ensuring a thorough due diligence is carried out from the outset. It also includes a summary interpretation to cut conveyancers’ time spent reviewing the information, a comprehensive risk assessment and an innovative digital viewing platform for homebuyers.

In addition, the trend for transparency within the conveyancing sector will continue to drive the emergence of new offerings from the searches industry.

Conveyancers will be provided with

ML // Conveyancing Supplement 2016

‘With Purplebricks making headlines last year, when it was listed on the alternative investment market with a valuation of around £240 million, the impact of online estate agents is set to be a major topic of debate this year’ more services and products that are tailored for the homebuyers. These products will enable conveyancers to provide their customers with an improved service and enhanced communication, and reduce their time spent updating clients.

Enabling competition Looking at changes within the wider property market, the emergence of online estate agents has been debated for years. To what extent will they replace the high street estate agents?

Will we see a complete transition towards digitalisation for the house buying process? With Purplebricks making headlines last year, when it was listed on the alternative investment market with a valuation of around £240 million, the impact of online estate agents is set to be a major topic of debate this year. Will sellers finally get behind this industry? There is a growing sense of anticipation that this is the year for a seismic change. The industry needs to be prepared to adapt quickly if online estate agents achieve their ambition of being ‘highly disruptive in the world of estate agency’.

In addition, this year there are a number of planned consultations that could have a very significant impact on the conveyancing sector. The Government’s consultation on the privatisation of the Land Registry will be closely monitored. And in advance of the review of Legal Services Act (LSA), which is scheduled to be reviewed during this parliament, the Government has announced its consultation on alternative business models entering into the legal sector.

The Government claims that it wants to ensure that innovative businesses are able to enter the market, providing greater choice for consumers.

The Solicitors Regulation Authority (SRA) is responding in kind and has announced they will be reviewing their regulatory model, whereby they plan to give legal firms greater freedom to run their businesses as they need to. This follows their decision to scrap formal CPD which will come into force in November. They claim it will provide conveyancers with greater flexibility, reflecting their ethos to focus on ‘competence rather than compliance with an arbitrary requirement’. Paul Philip, CEO of the SRA, noted that the legal services market is developing at an unprecedented rate and the expected review of the LSA may bring further changes. The industry certainly can’t afford to play catch up.

For years many commentators have called for the industry to be overhauled and the introduction of electronic processes to be integrated more widely.

There is a sea change underway and we are in the midst of this transition.

Conveyancers are a crucial part of the homebuying process and they will have to adapt to the changing sector; to fully embrace the digitalisation of the industry by utilising data and technology to create efficiencies, improve risk protection and customer satisfaction to enable them to compete.

Maud Rousseau is Group Marketing and Communications Director at SearchFlow.

Case Study

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The perception of service Lisa Beale, Head of Checkaprofessional.com, speaks to Angelo Piccirillo, Senior Partner at AVRillo Solicitors, about how obtaining verified customer feedback can help differentiate your firm.

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What were your initial thoughts on asking clients for feedback and what made you make the decision to try Checkaprofessional?

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Customer service has always been a major focus of our business. What we have found over the years is that clients’ expectations have increased. That is a natural progression. We all expect more. Shops are open 7 days a week and have longer opening hours. The digital revolution has truly come with more to go. Clients recognise that they can vote with their fingers. If you do not meet expectations, they let you know about it. Worse of all for your business, if they don’t tell you they will tell the rest of the world with the click of a button and reviews. In recent years this has been the downfall of many a business. Justified or not, an online review is there for life. Some online review sites do not even worry about the source, it could be a fake name, and the damage is done. Yes, you can try to sue under the Defamation Act, but it is slow, expensive and not easy.

Every year we plan on what innovations we can come up with to better serve the client. What other differences, apart from the legal advice we give, can we provide? We learnt many years ago that listening to our clients and understanding their perception of our service was more important than our perception. We regularly sent out surveys both during and after the transaction to find out what our clients really feel about our service. Good or bad.

We still do this, but last year we went further. We decided to give an open forum to reviews from the internet and consulted various other solicitors to ask their view. Like us, they had their reservations. What if the review they give is bad? What then? We deliberated and finally took the plunge when we visited Checkaprofessional at an exhibition stand. We listened to their talk and tentatively approached the speaker.

‘We learnt many years ago that listening to our clients and understanding their perception of our service was more important than our perception’

‘The secret is to actually pay attention to the reviews and act on them, whether they are justified or not’

Q

What difference has membership with Checkaprofessional (collecting verified feedback) made to your firm?

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One year on, we now send out all customers a Checkaprofessional invite right at the end of their case. They have nothing to hide at that point. Their case is completed. They can be as honest as possible. Another risk!

However, it is working for us. We are even more focused on getting our service right during the transaction. It is a service industry and however hard you try; there may be someone you have not been able to please. That is the risk but then we took the view that we would rather know about that and address that issue for the future of our business. We eagerly look forward to a score and have even asked our web designers to create a link on our page so all customers can see how we are doing. Good or bad. We review these at one to ones and see how we can improve. The secret is to actually pay attention to the reviews and act on them, whether they are justified or not. The good thing is that they are real customers, not like some web review sites which can be abused by putting in rogue details. We also follow the national NPS (net promoter score system) which measures our customer satisfaction. When Wonga feature at minus 80 with McDonalds at minus 37, Costa a plus 17, and Apple at 67, we are proud to say that our focus on listening last year, gave us a plus 60 score, one of the best in the country. This feedback is also making our staff more conscious of their service. They understand the correlation between good service and good feedback. It is no longer just about providing legal advice, but how it is imparted and how reassured the client is. They are more responsible for their own actions and business. A recent comment by Investors in People found our staff to be more engaged and having a sense of leadership, described as mini generals. Staff have started to create business plans off the back of their customer reviews on how they can improve service for themselves and their team. They are more motivated and happier as they now do more than just give advice, they involve themselves in the whole customer experience. For us, Checkaprofessional is working and we have no intention of changing from this more open form of communication with our clients.

Lisa Beale is Head of Checkaprofessional.com AVRillo Solicitors are a member of Checkaprofessional.com

ML // Conveyancing Supplement 2016

VERIFIED FEEDBACK ASSISTING YOUR COMPLIANCE AND MARKETING NEEDS! Brought to you courtesy of our sister company

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Checkaprofessional.com provides clients with the tools to make an 'informed choice' in Legal Services. The site is free for those searching and there is no need to register, which means NO BARRIERS for prospective clients.

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