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Over the last few weeks two notable planning cases have come to pass. In June, the case involving Orientfield Holdings Ltd. and Bird & Bird hit the headlines whilst, even more recently, the Thorp v Abbotts case also has significant implications for conveyancers, despite having not been subject to as much intense public scrutiny.

The crux of the latter case rested upon a claim that the sellers of the property had submitted fraudulent replies in the Seller’s Property Information Form (SPIF).

Shortly after the buyers (Thorp) moved in they became aware of a large-scale development in the area but, crucially, the sellers (Abbotts) were also aware of it too and had failed to mention it in the SPIF.

Some months later, the buyers commenced legal proceedings against the sellers for damages with regard to fraudulent misrepresentation.

However, the Court ruled in favour of the defendant.

Why?

Well, aside from the widely-held principle of caveat emptor (buyer beware), the Court considered that the terms ‘affecting’ and ‘communication’ from the SPIF should be given a ‘relatively confined’ interpretation in the favour of the seller.

To then further complicate the picture, in summary of the Orientfield Holdings Limited case, Judge Pelling QC ruled that:

“It is for the client to judge the impact of the material that may be relevant, not the solicitor.”

This summary would suggest that conveyancers need to make sure their clients have access to comprehensive information to make an informed purchasing decision.

Moreover, George Osbourne’s announcement of the new housing reforms on the 10th July 2015, in addition to the unveiling of a host of new planning reform measures designed to bolster the housebuilding process, could have further repercussions for conveyancers.

The new proposals allow automatic planning permission to be granted on many brownfield sites in England, with the knock-on effect that major projects in the housing industry could be fast tracked and rules on extensions in London relaxed. All of which points to a much busier environment outside of the limits of the information in the SPIF.

A simple solution which provides the information that a purchaser needs (but the seller does not have to supply) is a planning search. Easily available, not overly expensive and returned in a matter of hours for both residential and commercial transactions.

But these reports can sometimes run to one hundred pages in urban areas with a large amount of information which may be unfamiliar to the reader.

So how can the reader of the search, whether that is the buyer or conveyancer, quickly and easily identify the key issues within each report? Help is at hand. TM Group, in addition to the familiar planning reports from Groundsure and Landmark, offer a range of fully interpreted planning reports for residential and commercial transactions covering all budgets from Plan Val and Dev Assess.

For more information on any of these planning reports or to organise an in-house planning CPD please contact us on 0844 249 9200 or email helpdesk@tmgroup.co.uk.

Each year the Solicitors' Regulation Authority (SRA) publishes its risk review for the forthcoming 12 months, outlining what it thinks presents the greatest threats to 'the people who use legal services, the operation of the rule of law, and the proper administration of justice'.

This year, the SRA believe the riskiest areas to be: failure to provide a proper standard of service; misuse of client money; lack of a diverse and representative profession; lack of independence; failure to act integrity; information security & cybercrime; bogus law firms; and money laundering systems.

Of these threats, which do you think present the greatest risk to you and you firm? (Poll is now closed)

TM Group has announced a programme of regional conveyancing CPD sessions around the UK, featuring a range of expert industry speakers. 

Entitled ‘Driving & Adapting to Change’, the series of five regional events showcases content from TM Group’s national conveyancing conference of the same name, that took place in April 2015 at RIBA in central London. (see video below)

The conference in April formed part of TM Group’s continuing commitment to conveyancers’ professional development and was particularly well received, with more than 96% of delegates stating that they would recommend the training to a friend or colleague.

Now being brought to conveyancers in five different regions, each event focuses on the small changes that conveyancers can make that will have a big impact on their businesses. The expert guest speakers are charged with providing three useful tips in quick-fire sessions designed to help time-poor conveyancers get the most out of their CPD sessions.

Comprising two different approaches to managing the constantly-evolving property transaction, the format also helps shed light onto the inherent risks and opportunities in a conveyance.

The first session seeks to inform conveyancers how they can adapt to changes in legislation, continue to satisfy the ever increasing demands of the consumer and remain responsive to new risks as they present themselves.

In the second session, the speakers will show conveyancers how they can take a more proactive approach to change by embracing new ideas and technology to get ahead of the competition.

This session will include talks on reputation management, new business conversion, and attracting and retaining the best conveyancing talent.

One of the unique aspects of these events is that each one will feature interactive roundtables to be held at the end of both sessions. The roundtables offer delegates the chance to build upon the speakers’ talks, gaining a better understanding of the issues and having a platform to exchange views and experiences with their peers.

Expert speakers from across the property industry include: Ray Fox (Bottom Line Consultancy), Nicky Stevenson (Property Academy), Victor Olowe (Winzest Consulting), Chris Harris (Today's Conveyancer), Clare Yates (Lifetime Legal) and more.

Click on the links below to reserve your free place...

Maidstone
Thursday 24th September
Mercure Maidstone Great Danes Hotel

Nottingham
Thursday 8th October
Colwick Hall Hotel

Bristol
Thursday 22nd October
Radisson Blu Hotel

Bradford
Wednesday 28th October
Cedar Court Hotel

Chester
Thursday 29th October
Thornton Hall Hotel & Spa

TM Group have today announced the appointment of experienced industry professional Julia Scott, who will serve as Key Account Manager for the North of England.

With more than 15 years’ experience in the conveyancing market, Julia brings a wealth of knowledge and expertise to the business and is looking forward to working closely with our existing portfolio of clients to bring them market-leading online property and conveyancing solutions.

Commenting on what attracted her to TM Group, Julia said:

“Whilst working at other companies in the industry I was aware of how ahead of the curve TM Group are; they have always been first to market with new and useful services and I look forward to playing a big part in bringing these innovations to conveyancers.

Speaking about Julia’s appointment, TM Group Sales Director Carole Marsden said:

“I’m delighted to attract such a talent as Julia and welcome her to the team. We can’t wait for her to get started as her vast experience in this sector and proven track record of dedication to customer service will ensure that she is a real asset to TM and her clients.

Julia joins us at an exciting time for the business as we look to release new products and services in both the residential and commercial real estate market.”

To discover how TM Group can work best with you, please call Julia on 07483 425550 or email Julia.scott@tmgroup.co.uk

Thinking about your firm's training and development, are there any areas in which you think you need better support?

THIS POLL IS NOW CLOSED

June's survey is now closed - we will be publishing the results very soon.

Each month, we run a poll on opinions and trends which help serve as a barometer for the industry and publish the results in our newsletter. It emerged from our monthly poll in October 2014 that 83% of conveyancers don't have a quote tool on their website (or don't know if they do). Following on from those results, this month we're asking conveyancers...How many of your telephone enquiries convert into new clients?

The Mortgage Market Review intended to "hardwire common sense into the mortgage market" but, one year on, has it made any difference to a property transaction? TM Group's Nick Dyoss investigates...

The change in lending criteria introduced by the Mortgage Market Review (MMR) on 26th April 2014 were, as stated by the FCA, designed to "hardwire common sense into the mortgage market", and prevent a return to irresponsible lending that took place in the run-up to the credit crisis. Whilst time will tell if the long-term aims of MMR have worked, recent research by TM Group reveals one unintended consequence: namely that aborted or collapsed housing transactions are on the rise.

In April, TM asked conveyancers, “Have you witnessed an increase in the number of transactions that have aborted over the past 12 months?”

86% of respondents had seen no improvement or an increase in the last year and only 14% have recorded a fall. This begs the question of 'why?' when MMR was supposed to introduce stability.

February of 2015 saw research published by MoveWithUs which indicated that 49% of collapsed transactions were due to the mortgage falling through whilst 21% were caused by buyers not being able to afford as much as they thought due to MMR. Other issues cited were adverse searches & surveys and sales falling through higher up the chain.

Collapsed transactions are not a new problem.

Pre-MMR, in April 2014, QuickMoveNow highlighted a significant increase in their Sale-Fall-Through-Index with 27% of transactions in March 2014 failing to complete. The most common causes were identified to be on the seller’s side rather than the buyer's and included gazumping and problems with their own chain.

So what can be done to address this issue? Abortive transaction insurance for residential property is available from as little as £39.00 and will reimburse clients up to £1500 for conveyancing costs, mortgage arrangement fees, lenders fees and survey fees. Cover includes the most common reasons identified above including mortgage lending, gazumping and adverse searches and is also available for sale transactions as well.

Andrew Payne, the National Business Development Manager at Northcott Beaton, commented:

“‘The very nature of today’s property market means that there is heightened uncertainty within any transaction. If buying as an owner occupier, there are also elements of emotion attached to the transaction and, as such, it is imperative that consumers have the opportunity to protect themselves against the pitfalls of abortive transactions. In essence, this could indemnify the client for any financial loss enabling them to commit faster to any future potential purchase.”

Abortive Transaction Insurance from Northcott Beaton and underwritten by DAS is available from TM Group from £39 including IPT and is available for purchase and sale transactions.

For more information please contact your Account Manager. If you're new to TM Group, call us on 0844 249 9200 or email helpdesk@tmgroup.co.uk to get started.

TM Group's 'Home Moving Trends Survey' report set the tone for 2015, showing how solicitors need to react to the ever-increasing demands that consumers place upon them. Continuing on this theme, Lexis Nexis have recently released their annual Bellwether report, ‘The Age of the Client’ which explores how independent law firms and sole practitioners are responding to a new breed of client.

With TM Group's research featuring the opinions of more than 4500 home movers and Lexis Nexis' report being comprised of lawyers' opinions & private clients, we wanted to see if there was a disconnect between the legal perspective of the market to that of the consumer.

The race to the bottom

In this year’s Bellwether report, Lexis Nexis found that one of the chief concerns occupying lawyers’ thoughts is the idea that they need to compete with their cheaper competitors. In the chapter, 'The Challenges keep on coming', Lexis Nexis identify one of the trends that was teased out from the interviews with solicitors:

“The economy may be recovering, but the recession has produced a more demanding and value-conscious client. As low-cost competitors enter the market, retaining clients is seen as a challenge by almost six out of ten lawyers.”

However, TM Group’s recent survey of consumers showed that there is probably little to worry about.

It was revealed in the Home Moving Trends Survey 2014 that just 1 in 10 consumers chose the cheapest conveyancer and that, actually, most people were motivated by the solicitor’s ability to demonstrate professionalism, expertise and trustworthiness.

In fact, no matter which way you cut it – by age group, region, house price – nearly everyone agreed that you get what you pay for.

This will be heart-warming news for anxious lawyers.

Having spoken with senior partners at various law firms, it seems that many already understand this; they are adamant that they’re not going to be caught in a race to the bottom.

Setting out to market your firm on service rather than price can be a daunting approach and sometimes goes against what might seem to be intuitive commerciality.

But Lexis Nexis do offer an alternative approach for conveyancers drowning in a sea of cheap fees:

“More firms are going to have to become more specialised,  because there are all these competitors who can do the bog-standard work. That’s how you differentiate yourself – by being able to do the more complex work that they can’t do.”

Repeat business

Another finding from the Lexis Nexis Bellwether report was that 6 out of 10 lawyers saw ‘retaining clients’ as a challenge.

Historically, one of the main sources of revenue for a law firm was from returning customers and it can be much more effective to cross-sell other services from around the firm to existing clients than to try and win new ones.

The Home Moving Trends survey this year indicated that this is still the case with around a third of home movers returning to their previous conveyancer but clearly the other two-thirds of clients must come from other areas – with recommendations from third parties and friends & family found to be key drivers.

So how do you increase repeat business?

An unexciting answer but ‘Customer Service’ – capital letters intended.

A flawless customer experience should be your main priority and, if anything should go wrong, it’s how you deal with the problems that can set you apart from your competitors.

Being responsive

Gone are the days when solicitors can simply take down a client’s information in a ledger in a face-to-face meeting to get started and then give them a call only when something interesting happens.

In the modern day and age, clients may not even get the opportunity to meet with you face-to-face so it’s important to explain at the outset of the transaction exactly how and how often you will be contacting them.

Indeed, in this year’s Home Moving Trends Survey, it was revealed that three quarters of respondents (72%) want to be updated at least once a week, if not more, even if there is not necessarily anything to report. A quote from one solicitor in the Bellwether report concurs:

“My expectation is what my clients expect of me. In this digital era, I respond back even if I don’t have the answer as yet, so they know it’s being sorted out."

Furthermore, as we are all well aware, moving can be a stressful time with home movers often having to juggle the typical demands of everyday life. It is therefore no surprise to see that email (57%) is favoured over the immediacy of the telephone (38%), allowing clients the time to absorb information and formulate a response or reply outside of working hours.

For further insights from more than 4500 consumers, download the full report.

Following on from our recent research the Law Society, in conjunction with Catax Solutions, have released their findings on capital allowances and the results are almost identical, writes Nick Dyoss of TM Group (pictured right).

When the Law Society asked about the adoption of the new capital allowances legislation 37% of respondents said that they felt it was not the solicitor's responsibility to establish a position on capital allowances for a given property.

A further 18% did not yet realise that it is the solicitor’s responsibility to do this and have made limited progress in complying with the new legislation.

So, in total, 55% of the poll had an issue with complying with the April 2014 capital allowance practice note.

All of this is very similar to the TM Group research which found that 52% of respondents answered "What Practice Note?" and less than 10% were 'finding it easy to fulfil their obligations'.

Picking out some of the other points from the Law Society report:

• •    Only 20% of solicitors said they know everything they need to know about the Capital Allowance 2014 changes.

• •    70% admitted they would like to know more.

The other consistent theme from the Law Society's report was that clients are also unaware of capital allowances and the tax relief they can claim, which is backed up with 40% of law firms saying that their client never raises the issue during a transaction.

Is this because clients view capital allowances as a complication that delays matters rather than a benefit, albeit in the longer term?

But it doesn’t have to be like this with the client uninterested and the solicitor failing to comply with legislation; potentially exposing themselves to a negligence claim.

Practical ways of helping your clients with Capital Allowances

Add some wording into the client care letter, maybe the firm could offer some form of assistance to complete Section 32 of the CPSE.1? Certainly it's a good idea to raise the issue as early as possible in the transaction.

An easy way to help and be able to demonstrate your compliance is to obtain a search.

In the same way you do with the Contaminated Land and Flooding Practice Note, you can order a Capital Allowance Check which can be passed onto the client to help them get underway with some information which they can pass onto their tax advisors.

TM have launched a commercial search at £50 and a residential one at £15 which, with some additional information from the client, can be returned in hours. Simply login to the system to order or contact us to set you up with a account.

The issues associated with capital allowances are not going to go away and nor is the duty that solicitors have to their clients since the April 2014 changes.

The process for determining allowances can be improved quite quickly, with very little upheaval to you or your firm's existing processes. A few simple steps like the ones above could certainly help both solicitors and clients alike.

Last week, TM Group's national CPD conference for conveyancers, Driving & Adapting to Change, sought to identify small changes that could add up to big differences for law firms across the country.

Hosted at RIBA in central London, the day was separated into 3 sessions. The first focused on changes that conveyancers need to adapt to in order to remain competitive whilst the second session revealed ways in which forward-thinking conveyancers could drive change within their firm to get ahead of the competition.

Finally, the day was rounded off with a panel discussion on the use of technology in the legal profession. Throughout the day, delegates took to social media to spread the word and comment on the sessions as they happened.

Take a look at the day (in tweets)...

 Our speakers were keen to get started!

We're committed to your training and development - keep an eye out for future TM Group CPD events over the coming months.