CLC warns conveyancers on ethics

The Council for Licensed Conveyancers (CLC) has published its annual Risk Agenda, underscoring the pressing need for integrity in the conveyancing sector. In the accompanying press release, the CLC cautioned conveyancers against viewing post-completion tasks as less significant just because payment has been received. “The term ‘post-completion’ can feed into the notion that the applications to HMLR and, where needed, elsewhere (such as Companies House) are an afterthought, especially as they are done after collecting the fee,” the CLC stated.

The CLC highlighted that taking a fee without executing HMLR applications amounts to a breach of its Accounts Code. It emphasizes the obligation of conveyancers to perform these tasks with diligence and in a timely manner. The potential consequences of neglecting these responsibilities can be severe; failing to respond adequately to requisitions from HMLR could lead to property registrations being reversed, a complication that might only surface years later when a client wants to sell their property.

Last year's Risk Agenda reported a spike in complaints linked to practices not honouring their undertakings regarding HMLR applications. The CLC has intensified its scrutiny of such breaches, particularly those that emerge from inadequate processes in handling post-completion duties. “While we understand that sometimes an individual breach is due to the action/inaction of a third party – such as a lender or management company – the CLC is increasing its activity on this issue and tracking practices where we are seeing repeated or systemic breaches,” the CLC noted.

Moreover, the 2025 Risk Agenda addresses emerging challenges, including the readiness of some CLC practices to engage in transactions involving cryptocurrencies, which raises substantial anti-money laundering (AML) concerns. It also mentions the implications of China's stringent controls over citizens’ fund transfers, adding complexity to transactions involving funds from that region. The growing trend of properties being sold at auction is flagged as a further AML risk, with the CLC warning that this could expose practices to the threat of committing money laundering offences, particularly if due diligence is compromised.

Dame Janet Paraskeva, chair of the CLC, remarked on the essential role of integrity within the sector, stating, “The CLC has long been and remains on the front foot in ensuring that the sector we regulate is held to account to the highest standards of integrity and ethical conduct so fundamental to maintaining public trust and confidence in the legal profession.” She expressed pride in the CLC's proactive approach to reforms and urged all conveyancers to engage with the Risk Agenda to mitigate the risks identified.