Understand the Nature of the Transaction
When approached to act in a transaction, a conveyancer should first give consideration to the nature of the transaction, in order to understand whether it is within the firm's risk appetite and if so, what fee would be appropriate. The following questions will need to be answered:
- Does the client speak and read English and if not will you be able to communicate clearly in the client's native tongue?
- Is the client resident in the UK?
- If not are they resident in a "grey list" territory?
- Will the funds for the transaction (where applicable) be coming from outside of the UK?
- Will the funds be provided from the client's own resources or from a third party?
- Does the transaction appear to make sense?
- What is the price/value?
- Is the price/value greater than the limit of the firm's PII cover?
- Is the property a sale, a purchase, a remortgage, a transfer of equity or something else?
- If it is a purchase, is it with the aid of a mortgage?
- For remortgages and purchases is the firm on the lender's approved conveyancers panel?
- Is the property leasehold?
- If it is leasehold is it a house or a flat?
- If a flat, is it subject to the provisions of the Building Safety Act 2022 (i.e. is it at least 11m or 5 storeys high)?
- Has the client already exchanged contracts (for example at a traditional auction)?
- Is the property a buy to let property sold subject to a sitting tenant?
- Is the client a limited company/LLP?
