Needless to say, some practitioners are concerned that this is imposing an additional liability on solicitors. In response, the LR says ‘we are not asking conveyancers to confirm that they have verified the identity of their client. However… the LR relies on the steps that conveyancers take where appropriate, to verify the identity of their clients… We are not seeking to pass on the responsibility for identity fraud or for indemnity to the conveyancer. This is not our intention… In dealing with cases of fraudulent registration it has not been our policy to use our powers of recourse to recover moneys paid by way of indemnity where a conveyancer has been neither fraudulent nor negligent’. Be that as it may, many practitioners remain wary of this potential extension of liability. 



Do not forget that there are additional requirements if the other side was not represented by a conveyancer. In that situation, you must confirm that you are satisfied that sufficient steps have been taken to verify the identity of the unrepresented person, and you must also lodge evidence of that person’s identity using the appropriate certificate of identity forms (ID1 for private individuals; ID2 for corporate bodies). Needless to say, what this means is that if you are involved in a transaction with an unrepresented party, then you should insist on a special provision requiring that party to provide confirmation of identity (and deal with any identity-related enquiries or requisitions that may subsequently be raised by the LR). 



For further information, see LR Practice Guide 67. © Practical Lawyer