A legal organization has criticized the conveyancing system in England for being outdated and inefficient, calling for significant changes to the way things are done.
The Chartered Institute of Legal Executives (CILEX), which is made up of over 17,500 legal professionals, argues that home sellers should provide key details about their properties right from the start. The organization suggests the government should think about offering a package similar to what’s used in auctions, giving prospective buyers access to the home’s title and relevant documents when they view the house.
This comes in response to the Levelling up, Housing and Communities Committee’s request for insight into the process of buying and selling homes.
CILEX points out that leaving digitization efforts to voluntary action is causing inconsistency and confusion in the industry, affecting both professionals and consumers.
In a survey of CILEX members, of whom 20% specialize in residential property, 53% felt the current system is not efficient, and 81% observed an increase in the workload involved with home transactions over the past two years.
CILEX emphasizes the industry consensus that more information upfront is beneficial for the transaction process and important for protecting consumers. However, without requirements or enforcement for providing this information early on, it’s not guaranteed that buyers will have access to it when they need it.
Only 26% of their members are convinced that buyers currently receive adequate information at the right times during the purchasing process.
CILEX also notes the government’s failure to meet its commitment from the 2017 ‘Levelling Up’ white paper to make crucial buying information available online wherever feasible.
They propose creating a standardized approach for sharing digital information during transactions to ensure consistency and unity throughout the industry.
Additionally, they recommend regulating the roles of managing agents in the leasehold sector or adjusting the system for obtaining leasehold information to make the process smoother, as well as advocating for compulsory qualifications and regulation for estate agents.
CILEX acknowledges that requesting more upfront information from sellers might add to estate agents’ workloads before listing a property and could lead to earlier engagement of legal services, potentially increasing costs.
However, they argue that these increases in cost are likely to be offset by savings in other aspects of the transaction, like fewer deals falling through and a more streamlined conveyancing process. In the end, this could help buyers make more informed decisions and choose the right property for them.
Emma Davies, president of CILEX, states the need for a consistent approach to digitizing information in the industry. She underscores the necessity for industry collaboration and suggests the government should mandate digital advances where needed.
She highlights the absence of mandatory e-identity verification and the slow adoption of electronic signatures as major impediments within the property buying and selling process. Davies suggests that mandatory digitization policies would significantly improve these processes.
