CONVEYANCING
Does every littlehelp?
Legal expert Graham Dorman wonders if conveyancing can ever be just another tin of beans.
O
ctober 2011 heralds the de-regulation of the legal services market in the UK. Described by some as equivalent to the Big Bang in Financial Services in 1986, these changes will allow non-lawyers to carry out many aspects of legal work previously undertaken only by solicitors. The aim is to make
some aspects of legal work, such as conveyancing, as accessible to the public as a can of beans – leading to the changes being dubbed “Tesco Law”. How these changes will affect the provision of conveyancing
services and how high street solicitors are rising to the challenge will become apparent in the coming months as both new and existing players in the legal services market ready themselves for deregulation day. What is certain is that solicitors, estate agents and surveyors will be facing a clientele with rising expectations of a swift, quality service at ever more competitive prices. The assumption must be that following de-regulation there will
be a burgeoning of low cost conveyancing work undertaken by non-legally qualified staff. Doubtless a high volume, low cost base will be the model for new entrants, all keen to undercut current solicitors’ rates. This has lead to widespread concerns that quality and speed will be adversely affected.
The True cosT of conveyancing Cost, quality of work and speed are the three principal concerns voiced by consumers when accessing conveyancing services but there is surprisingly little uniformity across the legal profession in meeting those concerns. Conveyancing costs vary considerably as, unfortunately, can the standard of the work undertaken. That said, the majority of conveyancing solicitors have bravely battled to deliver a quality service at increasingly marginal rates of return. The major expenses, Stamp Duty, Land Registry fees and search
fees make up most of the cost of a property purchase. The one variable cost is that of the Conveyancer, and this does vary, but the
40 MARCH 2011 PROPERTYdrum
Generally, consumers’ experience of ‘bucket shop conveyancing’ is not good.’
consumer may often find a similarity in rates of charge locally. Most, if not all, conveyancing solicitors already offer a fixed
fee for the work. However, consumers should beware add-ons for such things as the preparation of Stamp Duty Tax Returns which can affect the final bill. Often, as in other walks of life, the low headline rate can mislead. Good solicitors will always be happy to produce a detailed and written quote for the work at the outset and indeed, following engagement, are required to repeat that quote in a formal engagement letter. Generally, consumers’ experience of cheap ‘bucket shop’
conveyancing is not a good one. Rigid processes are not well equipped to deal with complex transactions where the legal issues are not straightforward. Important considerations can easily be overlooked. Indeed, aspects of conveyancing such as rights of way, easements, restrictive covenants, planning and building regulations issues, if not properly checked and explained, can become a thorn in the purchaser’s side, often long after the property changes hands or when the purchaser goes on to sell. However, if the consumer is prepared to put up with a formulaic,
no-frills approach to their sale or purchase, there is undoubtedly a place for this model. Most industries have evolved into a ‘Good, Better, Best’ structure and ‘Tesco Law’ is perhaps an inevitable evolution of the UK legal services sector; regarded by many as something of a living dinosaur. Ryanair and IKEA demonstrate that some consumers are willing to forgo the niceties of customer- centric service for an ultra low price. Cheap conveyancing will be welcomed, but will prove frustrating when problems arise which need to be resolved tactfully, skilfully and imaginatively.
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