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Combatting Money Laundering
New and detailed amended rules to combat money laundering are in force
As a result professional advisers must ask more questions and in some cases require more information and documentation from clients before they can accept instructions to act or advise.
We will need to ask for more information in connection with acting for companies, partnerships, trusts, other bodies of people (such as clubs) and anyone who is acting as agent for another person. We may also need to go through the identification and verification procedures for shareholders, directors, managers, partners, trustees, beneficiaries, club members, anyone acting under a power of attorney, a receiver, administrator or insolvency practitioner or anyone appointed as an agent or broker of any kind.
In addition, the exemption under the old rules for existing clients from the procedures for identification and verification has been removed.
As a matter of policy we operate the new rules in relation to all clients and all matters.
All we ask is that you attend at our offices with
- your passport or picture driving licence
- an original council tax, gas or electricity bill addressed to you and dated within the last three months
For Data Protection Act purposes, we must also advise you that we are required to retain this information for at least five years.
Improving the Home Buying and Selling Process – April 2018
The Government’s plan of action
1. Buying and selling a home is acknowledged to be one of the most stressful events a person will experience, often considered alongside other major life changes such as marriage, divorce or having a child.
2. We believe that improving consumer understanding of the process and making it more transparent are key to improving the experience.
3. Further Estate Agent Regulation: Estate agents are currently regulated through the Estate Agents Act 1979 and enforced by a small national enforcement team, the National Trading Standards Estate Agency Team. They have the power to issue warnings and banning orders to rogue agents, and approve customer redress schemes. There is currently no minimum professional standard requirement in order to operate as an estate agent, unlike our plans for letting agents. We believe that introducing a requirement to hold a professional qualification backed up with a programme of Continuing Professional Development would professionalise the industry, improve service and reassure consumers. This builds on our consultation to strengthen consumer redress in the housing sector. We will:
• work with the National Trading Standards Estate Agency Team to strengthen enforcement of the existing regulatory framework for estate agents with a focus on ensuring all agents comply with consumer protection regulations;
• launch a consultation on creating a mandatory professional qualification for estate agents following engagement with industry and regulators; and
• post-consultation, evaluate the responses and consider introducing legislation where appropriate to ensure all estate agents are suitably qualified.
4. Referral fees: Referral fees are paid by conveyancers or mortgage brokers to estate agents in exchange for recommending business to them. We want to create more transparency surrounding referral fees so customers can make an informed choice and feel they are being treated fairly. We will:
• work with industry to standardise the presentation of referral fees and ensure that customers are made aware of any potential referral fee before they make a decision whether to purchase;
• task the National Trading Standards Estate Agency Team to proactively monitor the disclosure of referral fees; and
• look more closely at the case for banning referral fees, particularly for new build properties and instances when buyers are being referred.
5. ‘How to Buy’ and ‘How to Sell’ guides: The government will develop and publish guides on ‘How to Buy’ and ‘How to Sell’ which will complement our existing guide on ‘How to Rent’ and planned guides on ‘How to Let’ and ‘How to Lease’. These guides will ensure customers are better informed of the process and know what to expect throughout. We will:
• develop and publish ‘How to Buy’ and ‘How to Sell’ guides; and
• consider how the guide is distributed, for example making it a standardised part of estate agency engagement in the same way the ‘How to Rent’ guide is with letting agents.
6. Choosing a conveyancer: We want consumers to be able to make a more informed choice of conveyancer which considers service levels, not just price. Currently when selecting a conveyancer, home buyers and sellers often rely upon recommendations from friends and family or referrals from estate agents. We will:
• work with industry and consumer groups to develop solutions using more transparent data, standard metrics, kite marks and quality standards; and
• include advice on points to consider when choosing a conveyancer in government guides on ‘How to Buy’ and ‘How to Sell’.
7. Buying a new build home: A 2017 report found that 98% of new build buyers had reported snagging issues to their builders since moving in.7 This is an unacceptably high proportion. Completion dates are often pushed back by developers with little notice, leaving buyers in limbo. We will:
• improve the process of dealing with buyer complaints, informed by the findings from our consultation on strengthening consumer redress in the housing market.8
8. Making moving day better: On moving day buyers are often left sitting on driveways waiting for keys to be released from the estate agents. This is not only frustrating for buyers, but also affects moving companies and their workers, who are forced to wait around and then work late into the day, costing consumers millions in extra fees. We will:
• work with removal firms, conveyancers and lenders to see how the process around the release of funds can be improved.
9. Reducing time from offer to completion
10. The average time from offer to completion in England and Wales currently stands somewhere between 8 to 12 weeks, with around 40% of buyers and sellers stating it took longer than expected to buy their property.
11. We know that the longer the process takes between offer and completion, the more opportunity there is for buyers and sellers to get nervous, which can lead to people pulling out and in some cases, a whole chain of transactions collapsing.
12. We believe that a quicker process would reduce stress for consumers, and also reduce the number of failed transactions. Making more use of digital technology and getting buyers and sellers to provide more information up front is key to speeding up completions.
13. Ultimately, we see no reason why the home buying and selling process should be so lengthy. We want to work with consumers and industry to improve and redesign the process so it takes weeks rather than months.
14. Better technology: In the long term we want the process to be enabled by the wide range of technological improvements which are already speeding up other aspects of our lives. We also want to encourage digital innovators so that they can use their skills and expertise to transform the process. In the short term, we want to work with industry and other public sector bodies to encourage the development of digital signatures, improve the ID verification process and promote the adoption of e-conveyancing. To do this we will:
• establish a technology working group to engage users, industry and partners such as HM Land Registry to better understand user needs for new digital technology and stimulate innovation;
• task the group to prioritise work on digital signatures, improving and streamlining ID verification processes, and promoting the wider adoption of e-conveyancing; and
• work with innovators to explore routes to market for technological solutions.
15. More information up front: One of the reasons why the current process takes so long is that buyers (and their lenders) need to be satisfied that they have all of the information they need in order to proceed with their purchase. This information can take considerable time to assemble, and we believe this process should start much earlier. In the long term, we believe that most of the information consumers need to know about a property should be available when the property is marketed, for example through the development of a property passport. However, in the short to medium term we will use our ‘How to Sell’ guide to:
• encourage sellers to collect together relevant information (e.g. planning permissions, certificates for works done, previous searches) in an effort to be ‘sale ready’.
16. Earlier contact with freeholders: We already know that transactions involving a leasehold property take on average 2-3 weeks longer than transactions involving only freehold property. This is due in part to delays in receiving property information from the freeholder or managing agent. This is unacceptable. We will:
• set fixed time frames and maximum fees for the provision of leasehold information, potentially with a statutory underpinning, and encourage managing agents to make this information available electronically to enable instant access;
• work with industry to standardise the leasehold information form; and
• use our ‘How to Sell’ guide to encourage sellers to have early contact with their freeholder.
17. Speeding up local authority searches: Although response times to search requests have improved considerably over recent years, they still vary considerably between different local authorities. Lengthy waits can add weeks to the time taken to buy and sell. We will:
• write to all local authorities to set an expectation that they should respond to search requests within 10 working days and allow timely access for external search agents; and
• take action against authorities if they fail to meet these expected performance levels.
18. Getting a Decision in Principle: A Decision in Principle is a certificate from a mortgage lender setting out how much money they will lend to a buyer. We believe that all non-cash buyers should obtain a Decision in Principle before they start house hunting, and we know that many estate agents already ensure that prospective buyers have a Decision in Principle before they are able to view or make offers on properties. We will:
• make it clear in our ‘How to Buy’ guide that buyers should seek a Decision in Principle early in the process.
19. Reducing failed transactions
20. Over a quarter of all transactions fail costing hundreds of millions a year to consumers and causing undue stress to both buyers and sellers. Over 65% of all buyers and sellers are worried whether they will make it to completion following an offer being accepted.11 Government is particularly interested in the introduction of reservation agreements to address this problem given that a high proportion of buyers and sellers have expressed an interest in up front legal commitment. This will help to reduce the fear of gazumping.
21. Reservation Agreements: Reservation agreements are contracts which increase commitment between buyers and sellers earlier in the process, providing more certainty and reducing the risk of gazumping. These agreements are already used in some high value transactions but their use is not currently widespread. However, BEIS research, supported by the responses to the Call for Evidence, showed that buyers and sellers would be willing to use them. We believe that making use of these agreements a more common part of the process will reduce the rate of failed transactions and the fear of gazumping. We will:
• work with industry to develop a short standardised reservation agreement which can be used in any transaction;
• commission some behavioural insight research in order to consider ways to encourage consumers to adopt these agreements; and
• pilot these agreements with aim of making them a standard part of the process.
Did you see the Panorama programme on BBC 1 on 9th August?
If you do not have a Will you need to know what to look out for so why not pop in for a chat.
Link to the programme at www.bbc.co.uk/i/tfqqj
see the ICO web site and basic steps. Many small businesses and landlords and charities do not yet realise and how they are affected and all the data they are holding. seehttps://ico.org.uk/media/1624219/preparing-for-the-gdpr-12-steps.pdf
These leaflets tell you what is
involved in legal situations – click on the topic
that interests you for our checklist –
you are made redundant
you are sacked
you are sued
you are owed
you are involved in a
you are injured at work or in an accident
you want to sell your home
you want to buy a home
you want to make your will
someone has died
you want to start a business
you want to take on a partner
you have an employment problem
you want to invest in
you want to sell a business
Case you lose your job
Have you been employed for
less than 12 months?
Does your employer have a
Had you received any warnings
before you were sacked?
Have you appealed against
How much notice were you
Did you ask for a written
reason for your dismissal?
Was a notice of dismissal
with reasons given to you?
You may be able to bring a
Call for a meeting and bring
wit you any documents relating to your
employment and dismissal.
you want to start a business
Have you decided whether you want to trade in a
partnership or through a limited company?
Have you received advice – legal and financial -
as to what is the best option for you?
Have you prepared a business plan and cash flow
Have you found premises that suit your business?
If you plan to start the business from your
home, do you know about any statutory
Do you know if, when and how to register for
Data Protection, VAT, PAYE and other statutory
Have you thought about what terms and conditions
of business you need?
If employing staff, do you know what your
obligations are as an employer?
Do you understand your legal obligations to
other businesses and to consumers?
Getting on the right track from day one is crucial
for a successful business, so call for a meeting and
we can help you with practical assistance and
you want to take on a partner
Do you trade in your own name or through a
Do you have or have you had a partner or
Do you have any written agreement that sets out
how the business should be run?
Will the new partner be putting any money into
Will the new partner be working full or part
time in the business?
Are you prepared to give away some control of
the business and, if so, how much?
How long do you want the new arrangements to
Do you want to exclude any parts of the business
or any assets?
Taking on a partner is like a marriage – it may be
easy to get into but may be difficult and costly to
get out! Call to make an appointment to discuss your
plans with us.
you have an employment problem
Does the employee in question have particulars
of employment or a written contract?
Has the employee raised a grievance with you?
Do you have a written grievance procedure?
Have you instigated a disciplinary procedure
involving the employee?
Do you have a written disciplinary procedure?
Has the grievance/disciplinary procedure been
Are you considering a change in employment
terms, redundancy, or termination of employment?
Do you think the employee is planning to make a
claim against you?
are experienced in employment matters – both in
preparing contracts of employment and other
employment related procedures.
handle claims in the Employment Tribunal for unfair
or constructive dismissal
us to arrange to meet and discuss the best way
forward for your employment situation
you want to
invest in a business
Have you been offered a stake in a business?
Is it in a trade you know or is it something new
How well do you know the people who run this
Will you be a ‘sleeping partner’ or will you be
involved in day to day running of the business?
What ‘return’ on your investment are you being
What protection have you been offered to secure
What right to information about the business
have you been promised?
Will you have any right to be consulted or make
major business decisions?
Will you be expected to make further investment
in the business?
may be a ‘sure-fire winner’ but you need to be able
to talk the proposition through with experts in the
business of business
phone for an appointment
you want to sell a business
Have you decided to retire and sell your
Has someone made you an offer you can’t refuse?
Have you agreed what you will sell and how much
Are there any on-going obligations that you want
the buyer to take over?
Are there any guarantees to banks or any one
else that need to be considered?
Will the buyer be asking you to guarantee the
business you are selling?
If you have employees have you considered how
employment protection legislation could affect
Do you need to make any property transfers, or
are leases needed?
How can you transfer essential licences or
contracts to the buyer?
want to make sure the sale goes through smoothly so
planning is key – phone for a preliminary meeting to
discuss this transaction.
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