“Members should welcome the challenge and see the changes that will follow as an opportunity to root out those firms who are either incompetent or fraudulent,” said the trade body.
In a recent survey, being cut from a lender’s panel as a mortgage fraud risk emerged as conveyancing firms’ biggest fear, but the trade body said members agree lenders are entitled to manage risk this way.
Over a fifth of respondents said the impact of changes to Professional Indemnity (PI) insurance was another key issue for legal firms and could prompt lenders to demand disclosure on insurance arrangements.
Big volume conveyancers said falling transactions and smaller fees mean the conveyancing industry is likely to contract in future.
The results also showed that all CA members eligible for the Law Society’s Conveyancing Quality Scheme (CQS) have either applied or are in the process of applying, showing a commitment to raising and maintaining standards.
The Legal Services Act – in force from 6 October – allowing any firm to run a legal services arm, is another issue unsettling the industry, said Eddie Goldsmith, chairman of the Conveyancer’s Association.
“These results are highly indicative of the sentiment that has been rippling through the conveyancing industry for some time now. The Legal Services Act heralds the biggest change in legal services in decades. This alongside the other pressures raised by our members creates a perfect storm that will force conveyancers to make changes to their business,” said Goldsmith.
“The danger is that if conveyancers don’t re-assess their business models, don’t improve their standards or qualities and don’t demonstrate effective fraud prevention methods, they will simply lose business.”
Sue Brown, Partner at O’Neill Patient Solicitors LLP, a member of the CA, said: “With all the challenges facing the industry it can be quite difficult to gauge what the future will look like and how it will affect us. Our decision to join the CA was to ensure that we are part of a group that can shape developments in the marketplace that effectively help us to survive and thrive through the changes.”
