Brokers must select law firms carefully
Mortgage approvals have fallen to their lowest level since the start of 2014 due to tighter affordability checks, making it crucial for transactions to have the greatest chance of proceeding smoothly.
Eddie Goldsmith said: “Commentators have been trailing the possibility of the MMR causing a cooling of the property market for some time so this latest development wasn’t altogether unexpected.
“However it does highlight to brokers the importance of having a working partnership with a property law firm who is as committed as they are to the successful completion of every ongoing property transaction.
“When selecting and recommending a law firm brokers would be well advised to select one that, like my own firm, doesn’t charge on remortgages or property sales matters that fall through and who transfer all unspent fees on account on property purchase cases which abort to the next purchase.”
He stated that brokers should ensure the firm they select is included in lender panels as this will mitigate some of the risk if the transaction falls through and they need to find another buyer.
Meanwhile they should select a law firm that holds the Law Society’s Conveyancing Quality Scheme and other accreditations for quality such as ISO 9001 and Lexcel to reduce the risk.
Goldsmith added: “My recommendation to brokers in the current market conditions is to carefully select a law firm to handle property transactions, exercise due diligence in that selection and then invest in that working partnership.
“Then the conveyancer can give the greatest support in completing those property transactions that are approved by lenders.”