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Property remains by far and away the work type that attracts the most claims against solicitors. Over the last few years, property claims represent around 40% of all claims, although this peaked at 60% in 2010.

Due to the high level of claims, it is no surprise then that underwriters rate both residential and commercial conveyancing as the highest-rated work that a law firm undertakes.

Accreditation such Lexcel and CQS will be viewed positively, but the single biggest factor is that risk management cannot just a tick-box exercise; it has to be engrained within the culture of the firm.

Strong case management processes and procedures, case supervision and checklists are all important and, with PII renewal on the horizon, it may be timely to let underwriters know how you manage various risks in the conveyancing process.

There are many ways to help reduce the level of risk associated with conveyancing transactions, here's five of them:

Supply and Demand

As we enter 2014, the property market is looking its healthiest for years. Persistently low interest rates, falling unemployment and the Government’s ‘Help to Buy’ scheme have unleashed a generation of pent-up first-time-buyers on the market and HMRC are reporting that transaction volumes are at their highest since 2007 (graph below) whilst the Bank of England’s forward guidance sees interest rates remaining at record lows.

Lockton Companies have joined forces with TM Group to present

Property Law; a risky business

Thursday 13th February 2014

Bristol Zoo, Clifton, Bristol BS8 3HA
 

Residential and commercial conveyancing accounts for more claims than any other work-type.

Residential and commercial conveyancing work undertaken by solicitors accounts for more claims against the profession, by number and value, than any other work-type.

This is not some statistical bias arising from the sheer volume of property transactions. Claims consistently account for a higher percentage of fees earned than any other practice area, by a significant margin. Lockton’s Work-type risk profile chart – which is compiled using data from a range of solicitor PI insurers – consistently places Commercial Property and Residential Property work as the two highest risk areas of practice.