Conveyancing: concern over one bank monopolising funds


Solicitors expressed doubts this week over proposals for an electronic funds transfer (EFT) system put out for consultation by the Land Registry last week.


Under the proposals, parties to a conveyancing transaction would all put their funds into one agent bank, which would then be able to make all the necessary transfers at the push of a button at a pre-arranged time.


The scheme is designed to improve the efficiency and reliability of funds transfers. It will address difficulties experienced by parties involved in property chains in establishing a time of completion and planning for the release of keys to new owners.


However, Denis Cameron, chairman of the Law Society's land law and conveyancing committee, was sceptical about the scheme. He said: 'The Land Registry should be getting on with the job of e-conveyancing first of all - it should crawl before it can walk. I do not see this electronic funds transfer service ever happening.


'Will we allow one bank to control the funds? That would be a monopoly system. What happens if the system breaks down, and you have all that money thrashing around?'


A Land Registry spokeswoman said the agent bank would be selected through a tender, with security one of the primary considerations.