By Legal Futures’ Associate OneSearch Direct
Leading search companies in England and Wales have teamed up with risk and compliance experts Lexsure to enable law firms to order a LENDERmonitor LM04 Policy Search alongside other conveyancing searches.
The integrated policy search makes it easier for conveyancers to protect themselves from the risk of missing updates to Part-2 of the UK Finance Mortgage Lenders’ Handbook, which if not adhered to, can leave the conveyancing solicitor exposed to claims.
The insurance-backed LM04 search enables the conveyancer to quickly identify Handbook changes and see whether an issue has arisen. The search, which should be carried out prior to submitting the Certificate of Title (COT), has been welcomed by insurers and lenders who are keen to see conveyancers taking as much care as possible to manage this area of risk.
Jeremy Dorkins of Index PI has said that, “Lenders regularly change their Part-2 policies. We want to make it as easy as possible for our client firms to carry out an LM04 Search before submitting their COT to the lender and ensure that there are no changes to the policy that may leave them exposed. It was important to find a path whereby there is no direct cost to the law firm whilst undertaking this due-diligence”
Lidia Quinlan of OneSearch Direct said: “As a conveyancer, it is essential to be aware of the latest changes, since a liability arises to the lender if terms are not adhered to. The LM04 Lender Policy Search, available as part of our search bundle, supports our clients by providing them with immediate access to any updates that they need to know about, prior to submitting their COT.”
Lisa Summerton of Searches UK said “We are pleased to partner with Lexsure in this area of risk. The LM04 provides a simple, low cost and reliable way to access the latest amendments to the Lenders’ Handbook, saving lawyers a great deal of time, as well as reducing their potential exposure to risk should they not be aware of the latest amendments.
Summerton continued, “It also adds a further risk management solution to our existing armoury of risk-related tools that currently support solicitors.”