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Beware of bogus solicitors

This year has seen an increase in ‘scams’ relating to bogus law firms. Conveyancing, the legal process of buying or selling a property, is an area that has been particularly targeted.

The increased use of technology and increased use of online conveyancing services is enabling criminals to perpetrate fraud in a way that was not previously possible. Posing as legitimate law firms, they have succeeded in deceiving both solicitors and the public to obtain large sums of money.

The role of the Solicitors Regulation Authority

The Law Society’s webpage ‘Find a Solicitor’ has been considered a trusted source when checking the legitimacy of a firm. However, this webpage cannot guarantee a conclusive substantiation or verification that a firm is legitimate, as bogus law firms have been placed onto this list.

The BBC’s programme ‘Moneybox’ has highlighted a case where a homebuyer lost £735,000 to the criminals who had managed to register themselves on Find a Solicitor.

David Robinson, a solicitor representing these fraud victims, said that “It is unacceptable, in my view, that either a solicitor or a member of the public cannot phone up or email or write to the SRA and get reliable confirmation that X or Y is or is not a solicitor, since it is the SRA who set the criteria and requirements for getting onto the Law Society website.”

This raises the issue of how you can reliably check the credentials of a law firm and ensure that your money is safe.

How do you know that it’s safe to transfer your funds?

There are  tell-tale signs that a firm is bogus. For instance, if the only point of contact is an email account or telephone number and there is no registered firm or a physical address, you should be concerned.

In today’s internet world, the more remote you are from the professional ‘advice giver’, the greater the risk. The risk involved in providing your ID and financial details online to unverified firms is great, especially where your home and large sums of money are involved.

There is enough that can go wrong when buying a house at the best of times, so to ensure that your funds are secure, it is always better to use your local solicitor and meet them in person. This helps to confirm their identity and legitimacy, providing you with peace of mind.

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Alessandra Sulzer is a member of the Conveyancing team at FM&C Solicitors and may be contacted on +44 (0)1799 526 849 or +44 (0)7462 404 147.

Email: conveyancing@fmc-solicitors.com

For a Ha’penny’s Worth o’Tar

Should I do my conveyancing online?

This morning I ordered my food shopping, booked a holiday and read the news online. I even considered purchasing a husband online. Yes, it is possible to rent a husband online. It’s an amazing thing; your husband can cook, clean – who thought a husband could do either of those! Anyway, this is not the point I’m trying to make. Managing your life online is cheap, efficient, and easy.

The same applies to online conveyancing. Many are choosing to undertake the legal side of buying or selling a property from behind a computer screen. In my rockets and aliens pyjamas, I can instruct an online conveyancer to take on the process in a cost-effective and hassle-free manner.

But are there risks? As with an internet husband, the saying ‘what you get is what you pay for’ applies to online conveyancing.

Moving home is, for most, the largest financial investment they will ever make. Conveyancing quotes and fees can be misleading. There are often hidden extras in the small print and the lack of local expertise can lead to greater costs and wasted time in the long run, when additional issues arise.

Short term savings vs. long term gains

Searches are carried out to discover additional information about a property that often isn’t obvious. This part of the process is crucial. Searches identify where planning permission may be granted for a future development affecting the worth of your property, including chancel rights, the quality of the ground on which your house is built, or details of common drains.

These various strands of investigation can bring to light different issues as well as problems common to an area that can affect each property differently. Online conveyancing companies do not guarantee the same conveyancer throughout the process and therefore cannot provide as efficient and locally knowledgeable service as a Saffron Walden- or Haverhill-based solicitor.

But what if all searches undertaken come up clear and you reach completion?

Consider what could happen if in a worst case scenario you discover major legal defects after completion, or even ten or fifteen years later. Sometimes the crucial information is not what is immediately apparent in the documents before you, but what you wouldn’t have the legal knowledge to identify yourself and is therefore concealed. This highlights the need for a qualified local solicitor to undertake the legal side of buying or selling a home.

“A good quality local solicitor who is familiar with the area and has a depth of knowledge is often better than solicitors out of town. In addition cheaper online options can often be a false economy and can cause delays and issues in the conveyance process.” Bruce King, Cheffins Estate Agents.

So, going back to cheap. While it is unwise to pay too much, it is worse to pay too little. When spending £100,000 on a property, is it truly worthwhile to save £100 by going online?

While it is not immediately apparent, your local solicitor can ensure a faster, more efficient and friendly process to guarantee your peace of mind. While the internet means I rarely need to venture out into the cold, there are occasions where I am tempted out of my woolly rockets and aliens pyjamas to visit my local friendly solicitor.

2 Hailey Badger - FMC Portfolio 2013 (1 of 13)

Hailey Badger is a member of the Conveyancing team and may be contacted on +44 (0)1799 526 849 or +44 (0)7900 492 547.

Email: hailey.badger@fmc-solicitors.com