Buying or selling a property is one of the biggest financial transactions you will ever make in your life, which is why it’s many people’s goal in life. The process is known as conveyancing and it involves a lot of legal work, such as conducting searches to drafting contracts and managing the exchange of funds. For most people, this task is entrusted to a solicitor or licensed conveyancer.
While most real estate transactions go smoothly, professionals can still make mistakes which can create hurdles. When a conveyancer makes an error that falls below standard and causes you financial loss, it is called conveyancing negligence. Understanding what it is, how it happens and what you can do about it is crucial for protecting your investment.
This guide will give buyers and sellers knowledge about conveyancing negligence and what you can if you have fallen victim to it. Continue reading to find out more.
What Is Conveyancing Negligence?
Conveyancing negligence is when a solicitor or conveyancer provides a substandard service in a property transaction. They can fail to act with the expected standard of care and competence, which can lead to financial loss, legal issues or emotional distress for the client due to errors such as missing key searches, incorrect contract drafting or failing to identify title issues.
To prove a claim for negligence, you need to demonstrate that duty of care hasn’t been met, there has been a breach of duty or that you have suffered losses as a direct cause of the conveyor’s actions.
Read: How Smart Contracts Automate Claims in Insurance?
Common Types of Conveyancing Negligence
Failure to Conduct Searches
Missing key searches or misinterpreting the results can lead to problems like lack of access to services or new construction impacting the property’s value. This can have a financial impact on both buyers and sellers who are unaware of the right things to do due to the negligence of conveyors.
Issues with Property Title
Title defects are one of the most common mistakes a conveyancer can make. When you buy a property, your solicitor’s job is to check the legal documents that proves who owns the land and what limitations exist. Negligence occurs when they fail to identify hidden problems in these documents. These errors impact what you can legally do with your home and its potential resale value, so they count as a serious financial loss.
Inadequate Planning Permission
When you buy a house, you rely on your solicitor to confirm that any major alterations done by the seller had the required planning permission from the local council and adhered to building regulations. If your solicitor misses when paperwork is absent, you become responsible. This can leave you facing a stressful situation where the local authority demands that you either demolish or alter the illegal work at your own expense.
Contract Errors
Your solicitor or conveyancer is responsible for making sure all the key details in the contracts are perfectly accurate. If they make an error, such as putting in the wrong completion date for when you get the keys, it can throw the entire moving schedule into chaos and lead to financial penalties. It’s their job to check these details thoroughly and failing to do so counts as negligence.
Leasehold Issues
If your lawyer doesn’t clearly warn you that the small annual rent you pay will double every ten or twenty years, you could face huge bills in the future that can make your home impossible to sell or get a mortgage on. This failure to highlight a crucial and expensive term means your lawyer did not protect your financial interests and you may have a claim against them for their negligence.
What Can Buyers and Sellers Do?
Choose a Good Conveyor
You should focus on choosing a qualified conveyor to minimise the risk of suffering negligence. If you are getting a mortgage, your conveyancer must be on your specific bank or building society’s approved panel of legal representatives. If they are not on the panel, you will have to pay for two legal firms: your own and the one the lender chooses to protect their interests, which increases cost and complexity.
Communicate Clearly
Having clear communication between yourself and the conveyor will lead to less errors and streamline the entire process. Ensure that you give your conveyor instructions that are clear and that you understand the advice you receive, so you can act on any negligence accordingly. This will cover you if you are looking to receive any compensation.
Fulfill Your Seller Obligations
Answer all questions truthfully on the Property Information Form (PIF) and report any previous issues or disputes about the property. This will show that you are being fully compliant with the process and aren’t the one who has made the mistakes that have led to your financial losses.
Final Thoughts
If anything goes wrong during the sale or purchase of a home, it can be confusing to know where to turn for help. If you’ve been let down, this is where conveyancing negligence solicitors can come in. They will have the relevant experience with conveyancing negligence cases, which they can use to help you make a claim and gain compensation.
