2012 Q1 Conveyancing Periodical - Good News for Quality Conveyancers

January 2012

by Phillip Oldcorn

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How often have we heard the complaints about unhelpful or inefficient solicitors in relation to conveyancing transactions? Isn't there a perception that clients don't want to pay for quality service and that "price matching" is the key driver in choosing a conveyancer?  Indeed, the profession is doubtless weary of the tiresomely constant perception of poor performance that seems to permeate the public psyche.

Well, here's some positive news.  In a recent independent survey carried out by pollsters YouGov*, many of these perceptions were challenged. 

Solicitors were easily the top choice for conveyancing, used by almost nine in ten recent house purchasers.  A significant majority of respondents (68%) said that their conveyancer had done a professional job.  Furthermore, 44% cited the individual solicitor looking after their transaction as being well informed.  And a third of house buyers said they were happy to leave the whole process to their conveyancer.  

According to the survey, just under a third of people (29%) want someone local, while 24% tend to use their family solicitor.  Twenty three per cent of house buyers use a solicitor who is recommended to them by their estate agent.  Having a conveyancer who was unbiased was an important factor for 36% of respondents.  

Local knowledge is an important asset when dealing with a property purchase, and using someone local was the most frequently mentioned reason for choosing a particular conveyancer.  Only one in ten said they shopped around for the cheapest option.

Despite the significant shift toward the use of the Internet in all manner of everyday activities, only 4% rely on on-line recommendations for choosing their conveyancer. 

At last then, some robust data that demonstrates a strong degree of appreciation for, and trust in, quality, high street conveyancers.  We see this is a welcome shot in the arm that could go a long way to redressing the balance between perception and reality.  The research reinforces what we know to be true - that the vast majority of conveyancers are committed to delivering the highest levels of professional service. 

But what of any potential areas for improvement?  The survey usefully highlighted a few areas for more focus, in amongst this positive news. 

The YouGov survey delved further into the issue of risk.  And here, there appears to be a relative lack of awareness of, and/or interest in, the key things that can cause the most potential emotional distress and financial pain for a house buyer.

Feedback from the survey suggested that, when it comes to risks such as boundary disputes, seller misrepresentation and mortgage fraud, house buyers receive less information than might be expected.  Apparently, conveyancers tend to explain these to clients in only a limited number of cases (13%, 7% and 4% respectively).  This is a curious corollary to the broader picture of professionalism that emerges as the glowing headline from the survey.

One of the key risks that remains poorly understood is boundaries. Over half (54%) of house buyers think their boundaries are either completely accurate (27%), or accurate to within a small distance in either direction (27%).  The reality, of course, is very different. There is a common misconception that individual property records held at the Land Registry provide accurate information about boundaries. However, this is not the case. And it would seem that conveyancers often don't communicate this fact to their clients.  Ignorance about the accuracy of boundaries leaves house buyers exposed to the potential of disputes with their new neighbours.  

So far as mortgage fraud is concerned, house buyers ignore rather than accept the facts.  The level of mortgage fraud has continued to rise year-on-year and yet the survey reveals that over half (52%) of the respondents don't believe it is likely to affect them.  Here again, there is clearly scope for further client education.

As you would expect, nearly half of the UK's house buyers (46%) are concerned about the length of time it takes to exchange contracts.  And just over one in three (36%) is also fearful that a property deal will fall through - a fear which might be connected to the time it takes to reach exchange.  Perhaps unsurprisingly, the same number is keen to make sure that the process of buying remains as stress free as possible. 

On the all-important subject of pre-purchase house surveys, 42% opt for a 'homebuyer's survey', which is just as well. But, much more worryingly, nearly two out of ten people (17%) take out no survey at all.

So, what insights can we glean from the report?  Well, this sample of consumers gave a consistent message.  They prefer quality work, delivered by an experienced, usually local, conveyancing expert.  They want value for money, rather than the cheapest service.  They are not bought into the concept of on-line services, at least not yet.

They are nervous about the conveyancing process and understandably, naive, since they are not legally trained and it is not an experience, which happens often.

They are oblivious to serious risks that exist in today's conveyancing landscape. Conveyancers who do not properly manage the consumer's risks, with careful advice about the potential weaknesses in the system, leave their clients exposed.  They also leave themselves open to criticism.

However, this survey is good news for struggling conveyancers up and down the country. The message is clear: consumers want quality, local experience.  They don't want the cheapest guy in town and they don't want to walk into their local supermarket and buy conveyancing services just down the aisle from the deli counter.  

We hope this comes as a welcome confidence-booster for conveyancers everywhere.  

The message from First Title is also clear: hold your heads, quality standards, fees and spirits up, keep calm and carry on conveyancing.

Summary of survey findings / implications

  • Solicitors retain their 'brand' as preferred conveyancing adviser
  • Perceptions that clients shop for cheapest price and are happy with web-based suppliers dispelled
  • Consumers want a value-for-money but thorough, professional conveyancing service
  • ABS providers have some convincing to do
  • There is ignorance amongst consumers of some significant risks in the conveyancing process
  • Insurance solutions to protect family home are not discussed

*The research was carried out by YouGov / SixthSense.  It was conducted via a survey circulated among YouGov's online panel, drawing on a sample of 1,959 UK adults aged 18+ who had bought a residential property within the last two years.  The survey was conducted between 19 and 22 September 2011.

Phillip Oldcorn is a non-practising solicitor and worked in private practice before joining First Title plc in 1995. After establishing First Title in the UK, he spent two years with First Title in Australia before returning in May 2005 to develop the European market. Phillip is now Senior Vice-President for FAF International, a trading style for First Title Insurance plc in Europe and Turkey, focusing on new products and new markets.

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