We've always made it clear that we think that the current rash of Stamp Duty Land Tax savings schemes are risky for buyers. The problem for us, is that even though they are not illegal, it is the client that is bearing all the risk, and the firms that are charging them 50% of the savings have nothing to worry about.
Although the government cracked down on many of these schemes in the budget there are still a number around and people are still being tempted into using them.
Our question is straightforward - if they are so straightforward, why do companies sell indemnity insurance policies to cover them? Also, given that those policies typically only last for 9 months - what about the remaining 6 years that Revenue & Customs have to pursue these claims?
Just for clarity - if anyone was in any doubt that the revenue is pursuing these cases, maybe this Revenue and Customs link will make it clear.
This is obviously quite a formidable warning, and buyers should also be aware that in the future, Revenue & Customs could encourage new legislation that could potential make this a fraudulent transaction. This could be introduced retrospectively as well.
We will continue to urge caution amongst buyers thinking that this is a straightforward money-saving scheme.
Anyone thinking of using them, must be sure that they keep the money saved in a bank account ... just in case.
Thursday, 22 September 2011
Tuesday, 30 August 2011
The Partnership Newsletter - August 2011
"I'm sticking with you ... 'cos I'm made out of glue ..."
It seems the Velvet Underground had a point. We often hear from agents that they suffer the consequences of their client's choice of lawyer. Whether it is a low-cost internet-based firm that cannot afford to take their telephone calls or a traditional solicitors' practice that refuses to, all too often, the outcome is poor communication and deals slowed or put at risk.
However, we are finding agents refusing to take instructions if they feel the client's choice of lawyer may stand in the way of a successful outcome. The problem is that clients often feel intimidated by the threat of abortive fees and refuse to change. Hopefully the introduction of greater competition later this year will overcome this and we'll see them making decisions to change lawyers if they don't get the service they need.
Japanese knotweed causes concern for sellers
Until recently, Japanese Knotweed was a problem that was restricted to gardeners trying to halt its path. However, many people are not aware that landowners have a legal obligation under the Wildlife and Countryside Act 1981 not to cause it to spread if it occurs on their land. Due to this risk, we are now receiving an increasing number of lawyers asking about the presence of this weed in their preliminary enquiries, and we are advising sellers to deal with the issue before they put their properties on the market.
Recent case highlights problem of leaving child out of a Will
When Heather Ilott left home at 17 and refused to stay in touch with her father, despite his best efforts, he decided to exclude her from his Will. However, after his death, Ms Ilott contested the Will, and was awarded £50,000. Ms Ilott felt that this figure wasn't high enough and successfully appealed. Although the Supreme Court is due to hear this case later this year, currently, anyone considering cutting out a child from their Will should be aware that potentially, the courts may not uphold their wishes.
The Partnership League Launches in September
Over the past few months, we have been working with a small number of agents testing our new Partnership League system. This unique, web-based application enables agents to compete against their colleagues and competitors, with the most successful winning vouchers for websites and shops of their choice. Please email us for more information about how to join the League.
It seems the Velvet Underground had a point. We often hear from agents that they suffer the consequences of their client's choice of lawyer. Whether it is a low-cost internet-based firm that cannot afford to take their telephone calls or a traditional solicitors' practice that refuses to, all too often, the outcome is poor communication and deals slowed or put at risk.
However, we are finding agents refusing to take instructions if they feel the client's choice of lawyer may stand in the way of a successful outcome. The problem is that clients often feel intimidated by the threat of abortive fees and refuse to change. Hopefully the introduction of greater competition later this year will overcome this and we'll see them making decisions to change lawyers if they don't get the service they need.
Japanese knotweed causes concern for sellers
Until recently, Japanese Knotweed was a problem that was restricted to gardeners trying to halt its path. However, many people are not aware that landowners have a legal obligation under the Wildlife and Countryside Act 1981 not to cause it to spread if it occurs on their land. Due to this risk, we are now receiving an increasing number of lawyers asking about the presence of this weed in their preliminary enquiries, and we are advising sellers to deal with the issue before they put their properties on the market.
Recent case highlights problem of leaving child out of a Will
When Heather Ilott left home at 17 and refused to stay in touch with her father, despite his best efforts, he decided to exclude her from his Will. However, after his death, Ms Ilott contested the Will, and was awarded £50,000. Ms Ilott felt that this figure wasn't high enough and successfully appealed. Although the Supreme Court is due to hear this case later this year, currently, anyone considering cutting out a child from their Will should be aware that potentially, the courts may not uphold their wishes.
The Partnership League Launches in September
Over the past few months, we have been working with a small number of agents testing our new Partnership League system. This unique, web-based application enables agents to compete against their colleagues and competitors, with the most successful winning vouchers for websites and shops of their choice. Please email us for more information about how to join the League.
Friday, 26 August 2011
Nothing new here then ...
Looks like we've been causing a bit of a storm when it comes to referral fees.
In the days of Home Information Packs we were extremely vocal that paying referral fees was nothing less than the work of the devil. Indeed, we even did a piece for Channel 4 news exposing the story. The problem that we had with the issue is that clients were not being given a choice in the provision of Home Information Packs and just knew that they had to buy them, so our view was that providers were manipulating the market by paying fees to agents.
However, our launch of The Partnership League, a marketing incentive to encourage agents to include us in their recommendation lists to clients for conveyancing, has been picked up by the trade press (The Negotiator Magazine, that we have somehow changed our stance.
However, we believe in competition and know that agents always give clients a choice - we don't pass on any costs to clients and it is an excellent marketing idea. Well we think so anyway!
If you're an agent and want to know more about The Partnership League, please just email us and we'll let you know.
In the days of Home Information Packs we were extremely vocal that paying referral fees was nothing less than the work of the devil. Indeed, we even did a piece for Channel 4 news exposing the story. The problem that we had with the issue is that clients were not being given a choice in the provision of Home Information Packs and just knew that they had to buy them, so our view was that providers were manipulating the market by paying fees to agents.
However, our launch of The Partnership League, a marketing incentive to encourage agents to include us in their recommendation lists to clients for conveyancing, has been picked up by the trade press (The Negotiator Magazine, that we have somehow changed our stance.
However, we believe in competition and know that agents always give clients a choice - we don't pass on any costs to clients and it is an excellent marketing idea. Well we think so anyway!
If you're an agent and want to know more about The Partnership League, please just email us and we'll let you know.
Thursday, 28 July 2011
The Partnership Newsletter - July 2011
“Please can we book the pitch next to the Gloucester Old Spot sausage seller?”
We don’t want to pour cold water on the democratisation of the provision of legal services, but we think Quality Solicitor’s idea of having a promotional stand in WH Smiths for discussing legal matters and booking appointments with a lawyer, is intriguing. We agree you don’t need to visit your family solicitor to receive advice on matters such as conveyancing and wills, but the idea of going into a high street shop and discussing your personal matters does raise questions of confidentiality and credibility. We await with interest to see how their launch in London goes tomorrow and how the public respond to discussing their private affairs in public. If it is positive, then obviously we’ll be straight on the telephone to book our place at the next farmer’s market - we assume the best location will be between the Gloucester Old Spot sausages and the Big Pie Company– our A-boards will say something like, “Specially Local Conveyancing For Specially Local People”. It could work …
Delays to implementation of lawyer ownership change?
Most agents we speak to are not aware of the impact of the changes that were planned to affect the provision of legal services this October. These changes will allow any company to offer legal advice, so naturally, clients will be encouraged to shop around for the cheapest price. For the housing market, this obviously raises the spectre of potentially lower service levels and consequently further delays in the buying and selling process. However, we have learned today that due to legislative reasons, it is likely that this change will be delayed for several months. but are assured that it will be before Christmas.
Even more delays ... this time to EPCs
The government is learning that it’s easier to suspend housing legislation than introduce it. In recent months there has been talk of changes to the commissioning and use of Energy Performance Certificates (EPCs) that would have reintroduced the same delays that so dogged the implementation of Home Information Packs. It was planned that the responsibility for providing an EPC would fall to the agent rather than the individual and that the entire report would to be included with property particulars and had to be available before marketing. However, this change has been delayed until October and will be watered down so that only a single page of the report is required but this will need to be supplied within 7 days of commissioning. We await the next change ...
Social Networking in business?
Like many people we speak to, we have been sceptical about the value of social networking when it comes to promoting professional services. However, despite this, we have been quietly promoting our Twitter feed and LinkedIn pages in conjunction with our blog. Obviously we’ve been proved wrong as we’ve seen a significant interest from agents in our services and so we will be extending our coverage and are now redesigning our website for a September launch to reflect the change in marketing. We are monitoring this closely and are interested in feedback from our subscribers and how we can improve the information that we provide.
We don’t want to pour cold water on the democratisation of the provision of legal services, but we think Quality Solicitor’s idea of having a promotional stand in WH Smiths for discussing legal matters and booking appointments with a lawyer, is intriguing. We agree you don’t need to visit your family solicitor to receive advice on matters such as conveyancing and wills, but the idea of going into a high street shop and discussing your personal matters does raise questions of confidentiality and credibility. We await with interest to see how their launch in London goes tomorrow and how the public respond to discussing their private affairs in public. If it is positive, then obviously we’ll be straight on the telephone to book our place at the next farmer’s market - we assume the best location will be between the Gloucester Old Spot sausages and the Big Pie Company– our A-boards will say something like, “Specially Local Conveyancing For Specially Local People”. It could work …
Delays to implementation of lawyer ownership change?
Most agents we speak to are not aware of the impact of the changes that were planned to affect the provision of legal services this October. These changes will allow any company to offer legal advice, so naturally, clients will be encouraged to shop around for the cheapest price. For the housing market, this obviously raises the spectre of potentially lower service levels and consequently further delays in the buying and selling process. However, we have learned today that due to legislative reasons, it is likely that this change will be delayed for several months. but are assured that it will be before Christmas.
Even more delays ... this time to EPCs
The government is learning that it’s easier to suspend housing legislation than introduce it. In recent months there has been talk of changes to the commissioning and use of Energy Performance Certificates (EPCs) that would have reintroduced the same delays that so dogged the implementation of Home Information Packs. It was planned that the responsibility for providing an EPC would fall to the agent rather than the individual and that the entire report would to be included with property particulars and had to be available before marketing. However, this change has been delayed until October and will be watered down so that only a single page of the report is required but this will need to be supplied within 7 days of commissioning. We await the next change ...
Social Networking in business?
Like many people we speak to, we have been sceptical about the value of social networking when it comes to promoting professional services. However, despite this, we have been quietly promoting our Twitter feed and LinkedIn pages in conjunction with our blog. Obviously we’ve been proved wrong as we’ve seen a significant interest from agents in our services and so we will be extending our coverage and are now redesigning our website for a September launch to reflect the change in marketing. We are monitoring this closely and are interested in feedback from our subscribers and how we can improve the information that we provide.
Great client stories - Part 1
Not that we're implying that this is going to be a regular piece on amusing anecdotes about agent's experiences with clients but we did hear one the other day that demonstrates how little people know about the conveyancing process, and why maybe cheap isn't always best.
As per the usual instruction process, one of our agents asked their prospective seller whether they had a date in mind that they should aim to move by. Naturally, client pulled a date out of the air, and thought that it would be convenient to move on that date (approximately 6 weeks time).
Instruction started and was going through the usual process - hadn't got to exchange or anywhere close, but our agent received a call from the client the day before that aformenationed date, explaining that she had booked the removal firm, was all ready to go and could she come into the agent's office to sign the paperwork.
Suffice to say. our agent had to put her straight and told her to cancel the removal firm.
The client had been using a large conveyancing firm who obviously hadn't explained that the process involved a little more than just wishful thinking on her part!
As per the usual instruction process, one of our agents asked their prospective seller whether they had a date in mind that they should aim to move by. Naturally, client pulled a date out of the air, and thought that it would be convenient to move on that date (approximately 6 weeks time).
Instruction started and was going through the usual process - hadn't got to exchange or anywhere close, but our agent received a call from the client the day before that aformenationed date, explaining that she had booked the removal firm, was all ready to go and could she come into the agent's office to sign the paperwork.
Suffice to say. our agent had to put her straight and told her to cancel the removal firm.
The client had been using a large conveyancing firm who obviously hadn't explained that the process involved a little more than just wishful thinking on her part!
Santander - a breath of fresh air!
Really pleased to see that given all the anecdotal doom and gloom about lenders withdrawing panel status and changing criteria to make life more difficult for solicitors, we see that Santander (one of our favourite lenders) are implementing a new panel management scheme and extending this to new firms.
Obviously there are major challenges for some legal firms but if large lenders such as Santander are accepting panel applications then this gives us great encouragement.
Obviously there are major challenges for some legal firms but if large lenders such as Santander are accepting panel applications then this gives us great encouragement.
Monday, 25 July 2011
Interesting development from a lender
We have just been informed by one of the main high street lenders that in future, we're going to have to pay to remain a member of their panel. This is due to the overheads involved in their managing our panel membership.
We expect that they won't be the last to implement such a scheme, and we are watching carefully to see what approaches other lenders will take when it comes to working with solicitors.
We expect that they won't be the last to implement such a scheme, and we are watching carefully to see what approaches other lenders will take when it comes to working with solicitors.
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