On Monday I suggested that maybe agents and conveyancers should try to put together a document outlining the Principles of Working Together. However, I was reminded that I need look no further than the Law Society’s Conveyancing Quality Scheme (CQS) Protocol – where “there is reference to who does what and there are things that the agents are stated to do.”
At the request of Kristina Thirkettle of estate agents Gilson Bailey I sent her a link to the Protocol. Kristina said it was “very interesting and would be a useful tool for those involved in sales progression. This document takes you on a step-by-step path through the process which I think would be helpful for many.”
I will let you decide yourself if the Protocol helps. Here is the link to it.
I would mention that The Law Society states that; Use of this Protocol is considered preferred practice.
One of the general obligations are to:
Share information with others to assist in the efficient management of each transaction or chain of transactions. Requirements to provide and share information in each stage of the Protocol are subject to client confidentiality obligations. If the buyer/seller consents to the disclosure of information about the transaction, other transactions in the chain or any change in circumstances, this information should be disclosed. The buyer/seller should not be encouraged to withhold authority to disclose information unless there are exceptional circumstances.
Set out below are few of the sections that refer directly to estate agents;
- Other participants in the process, for example, estate agents, brokers and lenders, have important roles to play. Estate agents may have an understanding of associated transactions and may be able to assist in settling a realistic timetable. A framework for communication with others who may be able to contribute to the process should be considered and addressed in each case at the outset.
- If there is likely to be any delay in submitting a contract bundle, inform the seller, the buyer’s solicitor and the estate agents.
- Inform the estate agent and the seller when the contract bundle has been submitted to the buyer’s solicitor.
- Inform the seller and the estate agent of any difficulties likely to delay the exchange of contracts.
- Request the client or estate agent to negotiate the completion date if required.
- Notify all relevant parties (seller, agent, chain) that exchange has taken place immediately after exchange of contracts.
- Obtain the seller’s instructions to pay the estate agent’s fees from the sale proceeds.
- Notify the estate agent and/or any other key holder that completion has taken place and authorise immediate release of the keys.
- Pay the estate agent’s or property seller’s commission if so authorised.
My question now is, do we need a document outlining the Principles of Working Together, or does the Protocol tick all the right boxes?
Rob Hailstone is founder of the Bold Group, a network of conveyancers.
Comments (4)
I would say that there are many agents and solicitors who have been keeping to the protocol standards for many decades and long before someone decided to put it down on paper. It was only in more recent times that the situation became fraught and communication lapsed to the point of the blame game and don’t interfere syndrome set in between some parties, but not all.
Casting my mind back, it really started with conveyancing call centres and poor training of agency staff or lack off on, how to correctly chain chase. It still amazes me to hear an agent say they don’t get involved, it will either go ahead or won’t!
I’m sure many an agent can write a book on the subject of ‘for this and that’ and most of it would be targeted at conveyancing, which frankly no-one has ever tackled under one banner to make efficient or drive standards up and been left to individual attitudes and rot set-in to open warfare at times.
The Law Society states that; Use of this Protocol is considered preferred practice.
No it should be standard practice for all and would go along way to end the war of words.
Whilst it is laudable that organisations such as the Law Society / CQS have gone to the trouble of drawing up a document to promote understanding and collaboration it is also sad that this isn’t all quite obvious. There still seems to be very little appetite, even post SDLT holiday, for conveyancers or agents to reach out for solutions to problems that exist today. I fear that the majority are waiting for technology to solve the issues rather than taking simple steps to plug the gaps, right now.
A large part of the administrative burden should be shouldered by the seller immediately after the property goes to market making them responsible for being ready to proceed. Agents that are prepared to embrace simple changes to the selling process and have meaningful conversations with vendors will stand out as trailblazers and will reap the rewards from differentiating in this space.
Estate Agents literally and metaphorically hold all the keys.
And will,lose loads of instructions if they suggest it to the vendor
I think the case volume means the wheels come of at No8 in the list.
It is vitally important a solution is found and to that end an awareness and consideration of what each stakeholder in the process is contending with has to be the starting point.
I have just been through the frustration of a conveyance for the umpteenth time, this time as a parent. That gave me a new perspective again, different to being; a buyer, a seller, an agent, an executor. The pressure of explaining why a simple question wasn’t answered for 2 months and then the pressure of ‘the contract is finally here, you have got 10 working hours to exchange or the vendor is pulling out’ has given me another view and appreciation of what has to be considered.
I was invited to attend a meeting yesterday and got to see the work others are doing or attempting to improve the process. The industry is very close to a solution!