The first residential transaction has taken place under the so-called Conveyancer’s Code for Completion - a new procedure in which the buyer’s conveyancer agrees to transmit funds to the seller’s legal representatives one working day ahead of formal completion.
This means fewer chances of delays caused by funds being transferred on the day of completion and provides buyers and sellers with more certainty on when they will be able to pick up keys.
The code - which is voluntary - has been created by the Conveyancing Association as part of a larger plan which, in the organisation’s own words, “is an agreement between both conveyancers and clients to meet a series of undertakings to protect them and client assets, in order to provide a better completion day for all.”
The first completion of a property transaction has now taken place under the Code for Completion and was facilitated by two CA member firms, Convey Law and Attwells Solicitors LLP.
“The vast majority of delays which cause home movers huge stress on the day of completion are in relation to funds being received late by conveyancers and being passed on late in the day on related transactions. This new procedure ensures that all funds are in place the day before completion and are held to order pending completion actually taking place” explains Lloyd Davies, operations director of the Conveyancing Association and managing director of Convey Law.
“The home movers then get to move on the contractual time for completion between 12 [noon] and 2pm depending on the time specified in the contract. We are confident this form of practice will become commonplace and the norm within the conveyancing industry, and we are urging all enlightened conveyancers who care about client service, to adopt the Code for Completion” he adds.
In a white paper published by the CA a year ago, entitled Modernising The Home Moving Process, the association says that monies delayed between conveyancers may mean that a buyer at the end of a chain might not receive the keys to their new property until late in the day, particularly with the advent of the extended CHAPS hours for trasnferring funds.
It says in the white paper that by amending the Law Society Standard Conditions of Sale to require that completion monies are sent the day before completion, the completion can take place first thing on the completion date, giving all parties certainty of the time they’ll be able to collect the keys for their new property.
“Under the requirements of the Law Society Conveyancing Quality Scheme, amendments to the Law Society standard conditions are not permitted so there would need to be an amendment to the CQS requirements to achieve this” the association says.