• CML Solicitors Checking Of Facts

    By Guest on 21st Dec 2016

    Does a CML member send any protocol forms to a solicitor to get confirmation that the Lenders terms (mortage terms & conditions) have been complied with in full making the mortgage "valid" ??

    Should the lender make adequate checks if the solicitors doesn't return any forms or send an unqualified Cert Of Title ??

    If the lender has not had any confirmation that the solicitors has indeed complied with the CML handbook / instructions / protocol forms or whatever should the mortgage be afforded - Simply should some form of diligence take place to make sure the property which is a new build has all that's needed before allowing the drawdown of funds (mortgage) I would have thought that something was needed by the lender to show compliance and if not seek further information from the solicitor to ensure all is OK or not, & if not then not allow the release of the loan
    Many thanks

  • 3 Answers

    By Guest on 21/12/2016

    The lender's instructions to the solicitor are contained in the CML handbook. The lender may also impose transaction specific conditions in which case these will be contained in the mortgage offer. If the solicitor submits an unqualified certificate of title the lender will treat this as confirmation that all of the handbook requirements and any specific conditions have been complied with and will release funds. A CML lender will not except in very exceptional circumstances (if ever) release funds based on a qualified certificate of title

  • By Guest on 21/12/2016

    If all that was supplied to the lender was an unqualified Cert Of Title but then the lender does not ask anything about it ie require the solicitor to veryify it as there's no other documents from the solicitor then what if the mortgage is then afforded.

    In the case of an unqualified cert of tile how is the mortgage valid after the lender does learn that they did release funds wrongly - As has happend to me !!

    I thought the lender would need more than a copy of the title cert to ensure the CML terms had been complied with and, as such, the mortgage could be considered "Good"

  • By Guest on 23/12/2016

    No, the lender is entitled to rely on the solicitor's certificate of title. If the solicitor has made an error then the lender may make a claim on the solicitor's professional indemnity insurance, just as you can if an error by the solicitor (I assume the same firm acted for both you and the lender) has caused you loss. What are the full circumstances?

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