Payments provider Shieldpay has helped create the first fully digitised facility for funds to be transferred between a buyer and seller during the exchange and completion process.
The transaction was completed by My Home Move subsidiary Premier Property Lawyers with Barclays on a property in Liverpool that was sold through Purplebricks.
Shieldpay provides digital escrow accounts that can hold funds from all parties in a chain at once and automates identity verification, speeding up the transaction so all sides of the chain can follow and receive their funds.
Usually a conveyancer for each partner in a property chain would require paper forms and a signature to authorise funds. For example, a buyer’s conveyancer would need to request funds from the buyer’s bank, usually requiring a signature from their client. The money then gets sent to the conveyancer’s escrow account to be forwarded on to the seller’s conveyancer once the purchase completes.
Instead, Shieldpay creates a centralised digital escrow for all parties that can be tracked online and everyone verifies their identities digitally. The account also automatically links with HMRC systems so the relevant Stamp Duty can be taken out as can any legal fees.
Peter Janes, founder of Shieldpay, told EYE the idea was to speed up sales and said similar digital transactions were planned through other banks.
He said: “For too long individuals and businesses have had to engage in unnecessary complexity when sending and receiving sizeable funds.
“Anyone who has ever bought or sold a home will know it’s probably the most important transaction of their lives, but unfortunately it’s also the most painful.
“They also suffer from a complete lack of transparency over the status of the transaction. We only have to look at the size of the mortgage market in the UK as an example to understand the benefits for enterprises and consumers of a completely digital payments process.”
Doug Crawford, chief executive of My Home Move, said: “Having completed the first residential property transaction with Shieldpay, we can see the immediate benefits that their solution brings and how moving day could be revolutionised for many home movers.
“Clients waiting with the removal van in the afternoon for money to reach the lawyers could soon be a thing of the past.”
The transfer of money is never an issue as bank to bank is so fast in 2018. Minutes…IF….the recipient is checking their banking system for the payment.
The issue is the recipient conveyancer being available in between 20+ completions to even be able to turn their attention to the receipt of money, locate their file, agree formal completion and do the necessary calls.
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So a breakdown of moving day for those of the not informed variety.
Roughly 8am-11am vendor and their removal company are packing up, hoping to be ready by lunchtime ish. Sale completes 11-12 goes and collects keys from estate agent for next property and moves in. This lunchtime period for completions is needed to give people time to move out. If everything completed quick smart first thing in the morning, imagine the chaos.
Also this doesnt take on board those people “saving money” and moving themselves who need 3 trips between properties and finally clearout their previous home at 5pm.
Apart from maybe 1 or 2 times a year the system works fine, no need to muck about with something that doesnt need changing.
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It is not ‘1 or 2 times a year’.
Thousands of people every single month suffer late key release.
4000 moving companies are blighted by it, year in, year out. They watch their staff, and customers suffer pointless delays and late days solely because of this.
Late key release is pretty much the biggest problem and cause of stress the moving industry (worth @£2bn a year and employing @30,000 people) deals with. With specific regard to staff working hours, happiness and conditions
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You must be joking Matt. We hardly ever have any issues and as stated pretty much all sales are completed by midday. I would say this is a combination of having good local solicitors involved that move the money on swiftly when it arrives and being a good estate agent having keys with us to dish out the minutes completion takes place rather than waiting for them to be dropped off. Of all the issues that our industry has to deal with, completion day problems is not one of them
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Key release delays are human. Not electronic.
I welcome anything that makes the process easier for all involved, but especially the paying public.
Make no mistake though, the pain, angst and trauma of late key release is bad planning, incompetence and lack of care by humans in the process.
Nowt else.
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I hate press releases like this – it does not even describe the current process correctly and certainly does not convey what benefits are to be gained – just another snout in the trough
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Tim Higham, I couldn’t disagree more. Our team are able to check constantly when money is in, it doesn’t matter how many completions they have that day. The problem is often to be found in the banking system itself. It is now so costly for the banks to design and implement new systems that they continue with this system. It takes up a huge amount of time for a bank manager to sort things out when their system collapses. The challenger banks have up to date systems but when there are a number of banks in the chain the potential for delay becomes inevitable.
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They may be ‘able. But then almost everyone involved is ‘able’.
Yet still unreasonable moving day delays occur by the thousands.
‘Able’ and ‘on it, smart, switched on and wasting zero time’ are two different things.
(This post is in no way aimed directly at you, I have no idea which firm you represent).
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The length of the chain obviously has an impact on completion times, especially for those at the top end. It can be very frustrating for the client, agent, conveyancer and removal firms if completion drags on past 2.00 pm. A simultaneous completion at say 1.00 pm would seem to make sense. All removal vans packed am, journey time, then unpacking pm. Ok, there will be other issues to consider but a massive improvement surley?
There is a business in Australia that provides a simultaneous completion service and I know they are in touch with MHCLG and the HBSG.
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Mr Hailstone
“A simultaneous completion at say 1.00 pm would seem to make sense. All removal vans packed am, journey time, then unpacking pm.”
Good luck with that one. Can’t wait ’til you roll it out.
In the meantime I’ll stick to mastering the art of sewing buttons on f@rts whilst juggling jelly until you’ve got it sorted.
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I won’t be rolling it out PeeBee, just passing on the info. Wrong side of the bed today?
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Same side as usual, Mr H.
But – can you genuinely see this being rolled out?
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Yes.
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Rob, you’re spot-on. That would be perfect.
ArthurHouse sorry the statistics in our industry don’t support you.
Our own data shows it’s a huge problem.
Our industry association knows it is a huge problem.
Every employee in moving firms knows it is a pain in the backside and an expected occurance, let alone regular.
That the problem is the same now as 25 years ago, despite the advancements in technology proves it’s a human fault.
We had the same issue in the early nineties as now, and by ‘we’ I’m referring to the thousands of movers across the country.
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“…despite the advancements in technology proves it’s a human fault.”
Because you are dealing with HUMANS! Can’t you get that into your skull, after apparently 25 years of experience (or knowledge) of the process?
Technology does what in the process?
Nothing, that’s what. Without HUMAN input… a finger to press a key or button… ‘technology’ simply sits there counting down the hours to the end of life as we know it.
And when it does ‘do’ something – a human has to action whatever it has ‘done’.
Your vans are better now than they were 25 years ago. Yet your lot still turn up late when there are traffic problems. Why? You have better gear – what’s your excuse?
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No, we don’t turn up late due to any event within our control.
You are making my point for me.
Thank you.
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“You are making my point for me.”
No, I’m not.
You have NOTHING “within your control”.
Sometimes, you’re on time. Sometimes, you’re late. Sometimes, I bet you’re even early.
That’s the roll of the three-sided dice for you. No “control” there.
None whatsoever.
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Are you drunk?
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No…
…but you need a holiday.
That’s already been established previously.
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IF I was drunk, Mr Faizey, I would be able to see at least two more facets on that three-sided dice in my befuddled state.
And more’s the point, I would have been able to put forward a perfectly feasible (in my head, at least) explanation for each of them.
As it is, stuck with rolling the only dice there is – and it only has tres facetas, amigo.
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TODAY,
One of our crews, fifth in a chain of either 6 or 7. Arrived at the house @30minutes ago.
No keys yet.
It’s 13:19 now as I type.
I’ll reply to this post when I find out what time our customer gets through the front door and our crew start unloading.
For the record, there is @4hours worth of moving in.
We have other crews out there too, but as this one is so high in the chain it is this one that may be interesting
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Update 14:15.
Guy who has moved out of the house this crew are going into has walked over to our crew and said,
‘my solicitor doesn’t know anything, I’ve rang but they literally have nothing to tell me, sorry lads’
So, quarter past 2, four hours worth of unloading….. And still this crew can’t start, and still this set of customers are sat, in their car. Frustrated.
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Update on this crew
15:00 still no keys …..
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15:20,
I’ve just spoken to our customer.
She said her solicitor said ‘funds are on the way’.
Customer has just said ‘it’s been a long day already, it’s stressful this bit’
So, customer faces four hours of moving in and then all the time and hassle of getting straight, let alone unpacking yet.
15:20, still no keys. We have staff, sat in a cab for hours now. Some with young kids who won’t now get to see their children before they go to bed. Who won’t be home at a reasonable time no matter what.
For why? For what?
Because the ‘professionals’ involved operate with zero empathy and utter incompetance within a chaotic and useless system.
Still no keys…….
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15:45 no keys.
Customer warned about the 16:30 cut-off to start unloading.
At 16:30 we call time and bring the vehicle and crew back if front door not open.
Anyone want to suggest it’s ‘just one of those thing’s’ to our customers face?
Any of the Solicitors or conveyancers on here want to suggest no key release at 15:45 is reasonable?
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“She said her solicitor said ‘funds are on the way’.”
That counts for diddly.
HER solicitor doesn’t authorise key release.
The SELLER’S solicitor does.
And only when they have the monies in their account.
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You are too drunk to be worth replying to
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16:05.
Our client informed their buyers funds not received yet.
It’s going to be game over.
I’ve told our client to TELL their solicitor to serve notice.
And to think so, so many people suggest this ‘rarely happens’.
In 24minutes our fully loaded vehicle comes back.
Our customer will need a hotel.
Costs will run well into four figures….
Will our clients solicitor serve our clients best interests or ‘others’.
If by miracle we get the front door open in next 23mins – I’ll let yer know!
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You mean you have no answer.
Have a holiday… come back refreshed.
THEN you might not sound like your head is in desparate need of a well-overdue 5h!te.
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Game over.
Crew about to leave.
Customer in full agreeance.
Their solicitors secretary said on phone ‘I don’t know if we can serve notice’
I have said to badger, badger and badger more.
Our crew about to leave.
Customer homeless.
We now have to work out when on earth we can re-deliver. It likely won’t be this week.
What a wonderful system!
My thoughts are with our customer, who was choking back tears on the phone just now.
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Your customer is not homeless.
They still own the property they vacated at lunchtime.
Please state fact rather than blatant sensationalism.
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Great, no possessions. It’s 1 hour away. They have no keys for it.
Even if they could go back in it’s empty.
I’d say they are pretty homeless you flipping ******
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And ‘peebee’. Start posting using your real name you f&*king coward.
Making light of a deadly serious set of events that renders a family homeless due to this terrible system being operated with idiocy further proves my point.
Stand by your words, what’s your real name?
ETA (in response to you below).
You’re an idiot. Moving firms are reactionary to events. We don’t control them.
Maybe you just don’t have many customers. And perhaps that is why you have to hide? Everyone knows you’re a nobody.
You certainly have no clue with regards this process.
I’m done engaging with you. You’re a troll
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I am not making light of anything, Sir.
Assuming that these are genuine cases you have been commentating on today, I feel for your customers.
But I cannot ignore the fact that you seem to have had more ‘moving’ issues in one day than I have experienced in the last 25 years of Estate Agency. And almost 15 years in associated industry prior.
Did you warn your customers that, as in your own words, “it is a pain in the backside and an expected occurance”?
I’m glad you don’t operate in my patch. I’d be dreading the thought of every move.
Removals people up here seem to manage quite well.
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Mr Faizey
In answer to your most recent post.
Trust me – I have a little knowledge of the “process”.
I was doing my bit moving people from one home to another at the same time you were soiling nappies 24/7.
Looks like we haven’t moved on much – I’m still helping people move and you’re still full of 5h!te.
For what it’s worth – I’ve carried a fair share of boxes and furniture in the time. Not my forte however – I’m more of a drover than a donkey.
“Moving firms are reactionary to events. We don’t control them.”
Neither do Estate Agents. Yet you burst onto a site aimed primarily at them chucking lit fireworks into the room showering blame over us all for your customers’ predicaments – and then you whinge when someone bites back.
“Maybe you just don’t have many customers.”
I’ve had a few. But it doesn’t matter how many I have or have had – this is all about your little gatecrashing exercise – and your claims that the majority of those moving suffer some form of upheaval, inconvenience or stress overload because of “the system”. I’ve simply stated that less of mine in a period of almost 40 years, have ever suffered the fate on moving day that two of yours have been subjected to today of all days – quietest move-day of the week… but totally coincidentally on the same day that EYE runs this article.
I’d dread to be in the same county as you on the last Friday of the month, frankly.
“Everyone knows you’re a nobody.”
I’ve never said I am “anyone” other than me. Don’t profess to be something or someone that I’m not.
So why you’re so full of sn0t and fire because I don’t post under my full name is a complete mystery to me.
“…you f&*king coward.”
Sticks and stones…
“…you flipping ******”
OI – enough! I might well be a ****** – but calling me a flipping one is just taking it a step too far. Tone it down – this is a public site.
“You’re an idiot.”
You’re entitled to your opinion. Like @rses – we’ve all got one. And we’ve already covered yours.
I won’t end by effing and blinding, or calling you an idiot.
I know many genuine idiots and I wouldn’t want to upset them by association.
Good evening, Mr Faizey. Until the next time…
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To conclude this tale.
We have managed to find a slot today. The crew are on their way over as I type.
Lady and Gent were told they could go and get the keys for @5pm on Wednesday. Frankly absurd.
Their Solicitor is blaming ‘the banks’. However, as per an email I shared with two colleagues on here;
Client never got a call back after telling the secretary at @ten past four to serve notice to complete. Which was the conversation where the secretary said ‘not sure if we can do that’. Moreover in that same conversation the same secretary told her no funds had been received yet.
The next call she had was from the same secretary @45minutes later informing her that not only had funds been received but also sent on, chased, receipt confirmed and everything should now be fine!
For anyone following this, if you scroll down you’ll note one of the solicitors in the other chain I commented on has confirmed all this. Moreover Mr Hailstone too who knows the soli as a friend (not a Bold Group member) can also confirm this.
We wish stories like these were ‘once in a blue moon’. They are not. And, as previous posts from me have shown, both on here and ‘EAT’ I have published the mathematics and our industry profession supports with knowledge and data the fact that these type of events happen day in, day out. Especially during busy periods.
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Ooh, in other news;
Different crew who we will refer to as number 2. We imagined would have no issues. They are merely second in the chain to a first time buyer.
14:04 – no key release yet. This crew were loaded by @12, and at the new house by half past.
The solicitor acting for our customer, who I know has just emailed me forwarding on an email from the buyers solicitor. Turns out they only drew down (or asked to) mortgage funds this morning. They still haven’t had them.
Our customers solicitor has made them aware that shortly notice to complete will be served.
So, our customers, sat in their car, frustrated. Our crew of the lovely Anthony and Terry sat there, now for 1.5 hours.
All because of what?
One of those ‘able’ people? So able they couldn’t be bothered to draw down mortgage funds in advance and set the ball rolling first thing!
I’ll update on this crew too.
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14:30, our customers solicitor still hasn’t been notified funds have been sent.
Remember, just the one party below. One solicitor.
It’s like the Chuckle Brothers wrote the ‘conveyancing good practice handbook’
Oh, no, wait, there isn’t one.
Anthony, sat in the cab of this vehicle (for 2hours now) has a young son. He now is wondering if he’ll see his son before his son goes to sleep.
How is this fair?
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14:55
Rightly or wrongly, the front door is open.
Crew unloading. Sent customer in house.
House not paid for!
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And solicitor has served notice to complete!
Interesting day!
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Would love the inside track on this to find out what went wrong and why Matt.
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It’s simple this one Rob. Soli acting for the bottom simply didn’t request mortgage funds until this morning.
And then flaps and flutters on email to the solicitor above blaming the bank!
And, as a result, other people’s day goes to ratsh$t . Honest paying customers and removal men get shafted because one idiot couldn’t be bothered to operate with empathy or competance.
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To conclude.
Completion on this one was just after 4pm….
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Matt, I have no doubt that your experiences are genuine. I would like to know why the solicitor didn’t request funds until today? Did he/she have a reason or just inefficiency?
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Everything Matt has said is true. I was the solicitor in the middle of the chain to which Matt refers. I was lucky enough to be home by five o’clock after an incredibly stressful day and such stress to my clients was completely unnecessary. Matt’s employees are still working now. I am sure that my counterpart has no real knowledge or awareness of the stress caused by a failure to send the monies in a timely fashion, and a comment at half past ten this morning that ‘ this could be a late one’ did nothing to reassure me, my clients , the seller and their solicitor that it was going to be an easy day. At the point when my counterpart advised her client that the monies were sent but an hour later (at three o’clock) told me in an email that she had not yet received the mortgage monies was unforgivable. The chain was dependent on her……
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