Image: Protecting our lenders against the unknown
We have been asked a numerous times this week whether the lender or the solicitors (on either side of the transaction) must to see their clients face to face. If you are a lender or solicitor acting in a transaction and taking advantage of our Perfect Title policy there is no requirement for face to face meetings in this time of recommended isolation.
As experts who cover fraud, we ask our insured clients to do some additional checks that go beyond the JMLSG guidelines, which enables us to offer comprehensive fraud cover to all of our clients. We ask you to meet one of only four additional requirements that are not onerous and should not delay proceedings to help mitigate any fraud risk:
- Talk to the borrower on the phone to clarify security questions only they can answer. We call this a “speak with”;
- Internet portal sign on. Borrowers must be registered via a secure verification process;
- Receive funds from a UK bank account in the clients name;
- A borrower’s written response to a letter sent to the borrower at their home address.
Important – Are your i’s dotted and t’s crossed?
The real risk that comes from distance conveyancing generally emanates from poor administration such as:
– Did I have a mortgage deed on the day of completion? Yes
– Did I check it was signed correctly? No
– Did I check it was witnessed correctly? No
Provided that solicitors are being extra vigilant in checking the execution of documents (not the identity of who signed them) then unnecessary solicitor negligence claims can be avoided.