Questionnaire
You will need to collect information from your clients before you commence work. Using a proforma questionnaire specific to the transaction type helps the client to provide the correct information and helps you to ensure you don't miss anything and so helps to avoid delays. Having different versions of the questionnaire depending on the transaction type sale, purchase, remortgage or transfer of equity), client type (individual or corporate, owner occupier or buy to let landlord) will minimise redundant questions and make completing the form quicker and easier for the client. It will be up to each firm to decide exactly what to request however typically you would want the following:
- Full names and dates of birth of all clients (or directors/members where the client is a limited company/LLP);
- Company number for corporate clients;
- Phone numbers and email addresses;
- Correspondence address;
- Names, numbers and email addresses for anyone the client authorises you to speak to on their behalf;
- If the transaction will involve submitting an SDLT/LTT return, National Insurance numbers for the clients (or the UTR for any company);
- Bank details;
- Do they intend to live in the property or to let it?
- The price (for sales and purchases);
- The address of the subject property;
- Details of any existing mortgages including the lender, account number and approximate balance;
- Details of any new mortgage the client plans to take including the lender and the amount they intend to borrow;
- Details of the other party's solicitors (for a sale or a purchase) if known;
- Details of the selling agents (for a sale or a purchase);
- Details of any allowances, cash back amounts or other arrangements that will mean the actual amount paid over on completion will be more or less than the sale/purchase price;
- Any exchange / completion deadlines or timescales that the client wants to to work toward;
- Information to assist in the SDLT / LTT calculation such as whether the client is resident in the UK, whether they own other properties etc
Additional Fees List
Occasionally, you will need to do work during the course of a transaction that you haven't accounted for when preparing your original quote. It can be useful to include at the outset a list of additional fees you will charge for the more common additional tasks, such a fee for dealing with unregistered title, or a fee where the property is a high rise flat or where you need to transfer a share of a freehold etc.
Client Due Diligence Information
You should explain in the engagement letter about the identity checks you'll need to carry out and if applicable the checks on the source of funds and wealth. Give as much information as possible so that the client can prepare the necessary information and any client who is not comfortable with supplying what you are asking for can see alternative representation before you have carried out any work on the matter. You will need to follow your own firm's AML policy but need to be thinking about who you will need to carry out identity checks against and what checks will be needed, how any purchase price or mortgage redemption shortfall will be funded. If funds are being provided by a 3rd party then will they submit to ID checks and be willing to supply documentary evidence as to the source of the funds they are provided?. Consider preparing a form which tells the client the total you will need including fees and disbursements and (where applicable) SDLT / LTT and invites them to insert the various funding sources until they add up to the total. If you will be sending this by email you might send it as an Excel spreadsheet with a built in formula which automatically deducts any amounts inserted form the total and provides a running balance.
If you would like assistance in generating an engagement letter and supporting documents and you are a subscriber you can use our "Generate Welcome Pack" tool. Just select in from the Virtual Conveyancer menu on the left and if you haven't already done so, register and subscribe.
