The CML Handbook was updated on 1 June (although, surprisingly, few
of the changes are as a result of HIPs). Note in particular:
the rules on acting for connected persons have been tightened up.
‘Your firm or company must not act for us if the partner or fee-earner
dealing with the transaction, or a member of his immediate family, is
the seller, unless we say your firm may act and a separate fee-earner
of no less standing or partner within the firm acts for us.’ Note that
‘immediate family’ includes a spouse, civil partner, co-habitee,
parent, sibling, child, step-parent, step-child, grandparent, grandchild,
parent in law, or child in law. In short, acting for family members has
now become more difficult (see para 1.13.2);
- references to specific searches have been deleted (the only exception
is for environmental searches – and the protection given to
conveyancers in relation to those searches remains in place).
Amendments have been made to allow lenders to accept personal
searches if they are carried out subject to specific requirements of
individual lenders (in Part II). Note that clause 5.2 no longer limits
‘personal searches’ to local searches. But, searches must still be no
older than six months at the date of completion;
- the Handbook now re-enforces the obligation on the conveyancer to
report to the lender when the mortgage offer is unclear whether the
property is to be let at completion or is currently let. The mortgage
must be for the buy-to-let purpose. If the house is in multiple
occupation (under HA 2004 – and remember that that definition is far
wider than it used to be) then the conveyancer must check Part II of
the Handbook to confirm that the lender will accept such a property
(clause 6.5);
- we all know it can sometimes be virtually impossible to get a lender’s
interest noted on the block insurance policy of a lessor. Accordingly,
Part II can now allow lenders to relax that requirement (clause 6.13.3).
. © Practical Lawyer
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June 2007 |
