Legal bodies unveil template to allow exchanges to be delayed amid coronavirus pandemic

Legal industry bodies have released new guidance on what conveyancers, buyers and sellers should do to comply with Government guidance on home moving during the coronavirus crisis.

The Law Society, the Society of Licensed Conveyancers (SLC), the Chartered Institute of Legal Executives, Bold Legal Group and the Conveyancing Association (CA) have advised what should happen if a buyer has or hasn’t exchanged contracts in order to follow Government guidance that only essential moves take place.

Where the exchange has taken place, the guidance sets out the need for buyers and sellers to agree between each other or their estate agent to delay completion.

Conveyancers should draft a written agreement to alter the existing contract, to e-sign or authorise the conveyancer to sign on the client’s behalf to avoid the risk of passing on the virus and to ensure clients are fully advised.

The group has produced a draft clause that conveyancers can use to form a variation agreement that delays completion, but it warns it is intended as a starting point and may not reflect everyone’s needs.

The guidance adds that such an agreement should also allow the completion date to be changed again should the lockdown period be extended.

Where contracts haven’t been exchanged, the guidance suggests conveyancer clients prepare the relevant documents but consider whether they want to exchange and include any clauses that reflect the ongoing risks of the virus in the contracts.

If a client does move during this lockdown period, the guidance advises following the social distancing rules and gives the new home a deep clean.

Paul Smee, chairman of the CA, said: “At present, home moves should not be contemplated unless the need to move is critical.

“So, this guidance only applies to cases where contracts have already been exchanged and the parties involved have been unable to agree on a delay in completion.

“It outlines the relevant requirements that have been put in place by the Government to counter the spread of the virus, and what conveyancers need to do to work within them.

“Home moves can only occur where it is safe for them to do so. Some cases will have special features on which specific advice will be needed and home buyers and sellers should always talk to their conveyancer.

“Firms should be prepared for a changing situation and their service will need to respond flexibly in order to comply with the Government’s evolving objectives.

“This has been a real collegiate effort amongst a range of conveyancing trade and sector bodies, plus the regulators and Government departments such as HM Land Registry, to provide this supplementary guidance that should help firms to work through such cases.”

Simon Davis, president of the Law Society, added: “The Law Society recognises the real difficulties faced by those who are trying to move home, particularly for those who have exchanged contracts, but are not able to complete, for a variety of reasons created by the restricted movement requirements.

“The guidance from the Government, and that produced by the Law Society in conjunction with other conveyancing bodies, is our attempt to offer some solutions in these exceptional circumstances.

“There are no simple solutions and the position is one that is fluid and changing. We will keep it under review and if necessary step in again.”

You can download the guidance here: https://www.conveyancingassociation.org.uk/downloads/

 

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