Stronger regulation of the high-volume, low-value conveyancing sector will be required to ensure the success of reforms aimed at improving the speed and efficiency of the conveyancing process, says CILEX (Chartered Institute of Legal Executives).
CILEX argues that parts of the conveyancing market operate on ultra-thin margins reliant on large transaction volumes, creating process bottlenecks, delays and inconsistent client care that ripple through property chains.
It says the pressure on lawyers handling heavy workloads increases the likelihood of errors and slows completions, directly at odds with ministers’ ambition to make transactions faster and more transparent.
The institute is urging the Legal Services Board and frontline regulators to act jointly to raise standards in bulk conveyancing, warning that consumer protection must not be diluted as the system becomes more digital and streamlined. It also wants a review of conveyancing fees to reduce incentives for firms to take on unsustainable case volumes simply to maintain profitability.
HOME BUYING REFORM
The intervention comes as the government pursues wide-ranging reforms, including greater upfront information in property listings and the potential introduction of digital property logbooks.
CILEX supports compulsory provision of material information, backed by legislation, and says consumer understanding of the consequences of supplying inaccurate details will be critical to avoiding future disputes.
It also calls for changes to anti-money-laundering responsibilities so that checks are carried out by the first institution engaging the consumer – typically a lender or mortgage broker – to reduce duplication and administrative burden across a single transaction.
The move would align with plans for the Financial Conduct Authority to take over AML supervision from legal regulators.
CILEX further wants an urgent review of referral fees and stricter transparency rules for estate agents, alongside the implementation of Regulation of Property Agents measures and a formal code of practice.
Taken together, it says, tougher oversight of conveyancers, clearer information standards and streamlined compliance processes are essential if the housing market reforms are to deliver faster transactions without eroding service quality.
NO COMPROMISE ON QUALITY
CILEX President Sara Fowler (main picture, inset) says: “We need a faster and more reliable conveyancing process that keeps pace with technological advances, holds all professionals involved to high standards and engenders the trust and confidence of consumers.
“It is imperative that in pursuit of speedier transactions there is no compromise on quality of service and that consumers get the expert advice they need.
“The government’s proposals offer much needed change to the sector but if the reforms are to be a long-term success, we need to see strong regulation and education, a review of current fee structures and transparency on referral fees to ensure that consumer protection is at the heart of these reforms.”
