Property information forms will make 'transactions more straightforward

Two years have passed since the publication of the Law Society Conveyancing Protocol and the Standard Conditions of Sale (Fifth Edition). Another two pieces in the jigsaw designed to improve conveyancing practice for solicitors and clients have now been issued: the new Law Society Property Information Form (TA6) and Fittings and Contents ?Form (TA10).

The new forms are a substantial revision on the previous versions. They are also designed to help solicitors comply with the protocol obligation, only to raise those enquiries required to clarify issues arising out of the documents submitted or which are relevant to the particular nature or location of the property or which the buyer has expressly requested.

The growth in unnecessary and sometimes spurious additional enquires complicated and delayed the process, sometimes potentially creating risk or giving buyers a false sense of security by asking sellers to speculate on things which the buyers should properly find out by asking their own surveyor or making their own direct enquiries.

New risks

Some areas in practice have also developed, including, for example, the desirability of asking about Japanese knotweed and more detailed questions about flooding.

The insurance industry's concerns on managing risk for flooding impacts on the buyers (and sellers) ability to continue buildings insurance cover on normal terms which, in turn, may lead to difficulty with complying with mortgage lenders requirements.
The protocol requires buyers to be advised early in the transaction to seek terms, not wait until the last moment, so that if there is a problem they discover it sooner rather than later. Better information on the Property Information Form should assist them in doing so, drilling down into different flooding types.

Previous editions of the form have been produced by a committee of practitioners under the auspices of the Conveyancing and Land Law Committee. The same procedure was followed this time, with the added assistance of a consultation with the profession, primarily through Conveyancing Quality Scheme (CQS) firms, the Law Society Property Section, and local law societies.
The results showed a considerable consistency in requests for particular types of question, which have been incorporated.
The Law Society wanted this form to be fit for purpose and to be accepted by practitioners and clients alike, so having that input early on was very valuable.

Building work

One area singled out for criticism in the last version related to building works (question 4a). Quite simply the form did not allow enough detail. That whole section has been re-written, allowing the box requiring sellers to complete the detail which the buyer should require. There is also a more detailed explanation on building regulations and competent person's certificates. If the client completing the form understands what we are getting at, that should save time later.

There are also some new questions, taken from a range of commonly used additional enquiries. Some may think these are not strictly necessary, but many practitioners wanted them and the form is of course for the benefit of buyers. Asking sellers to make sure that a property will be left clean and tidy, that they will take reasonable care when removing items and will leave all the keys should not be too contentious, even if they do little more than remind the seller what they should be doing anyway.

Many of the old overriding interests questionnaires duplicate information in question 8 of the previous form, but in order to assist practitioners the point has been expanded to cover the main items arising on from those.

Fittings and contents

Revision of the Fittings and Contents Form (TA10) should be somewhat less contentious. The previous version had ?been slimmed down but was harder for ?clients to complete and sometimes confusing ticks and crosses, leading to unnecessary enquiries.

This version reverts to the longer ?form with more boxes which should be clearer for sellers and buyers alike, particularly around the vexed question of kitchen fittings.

It is easy for solicitors only to concentrate on what we think are the important legalities, but we must remember that for many clients the existence of rights and covenants is not quite as important as whether the seller is taking or leaving the white goods, carpets or curtains. This form should assist in helping us to spend less chargeable time corresponding about items which may be less valuable than the time we have to take writing about them.

Within the protocol 'General Obligation 11' firms are required to use the most up-to-date version of the forms. A little time will be needed to ensure there is a proper crossover where there are existing transactions or forms were completed prior to launch, so I would initially expect a light touch in implementation and enforcement, but as the senior responsible officer of every CQS Firm has signed an undertaking to use the protocol, adjustments in procedure will need to be made sooner rather than later.

Landlord and managing agent

Please don't think that the Conveyancing and Land Law Committee is sitting back and resting on its laurels, far from it; work has now commenced on production of what we hope will be an industry standard Landlord & Managing Agent Questionnaire. This is a significant challenge due to ?the many and various different ways in ?which freehold and leaseholds are owned ?and managed and the multiplicity of organisations from whom we ?need information.

The newly launched forms will help us continue leading the way in which property is bought and sold in England and Wales, for the benefit of our profession, and more importantly for the public, who are doing the buying and selling.