E-conveyancing may open door to lenders

The government has proposed that conveyancing solicitors should have four years to prepare for the 'paperless office' revolution - and has hinted that mortgage lenders could get in on the action by activating the dormant authorised conveyancing practitioners (ACP) scheme.

Launching a consultation at the Land Registry this week, the Lord Chancellor, Lord Irvine, announced that the government wants to see a 'world class, speedy, easy-to-use electronic conveyancing system' in place by 2006.

He said the cornerstones of the regime will be paperless offices, enhanced security, no registration gap, and a permanent connection between practitioners and the Land Registry.

It will also set up a 'linked transaction matrix', enabling practitioners to view each stage in the client's chain and allow for instant and simultaneous exchange of contracts.

It proposes a central electronics payment system to handle all payments necessary to complete the chain.

Public key infrastructure could be used to put controversial electronic signatures in place, and the government has also restated its aim of introducing seller's packs as soon as parliamentary time can be made available.

Land Registry solicitor Chris West hinted that it may relax the timetable for commercial conveyancers.

'We are going to try hard not to do daft things and cause problems for various sectors of the market,' he explained.

Bernard Clarke, communications manager at the Council of Mortgage Lenders, said recent developments had reignited lenders' interest in the conveyancing market.

The ACP scheme, which would give institutions the ability to offer conveyancing services, was a deregulation measure contained in the Courts and Legal Services Act 1990.

It allows anyone who meets various criteria to apply to become authorised to conduct conveyancing services but it has never been brought into force.

'With e-conveyancing and sellers packs, we believe we are closer to seeing a one-stop shop for the provision of mortgage and conveyancing services,' Mr Clarke said.

Chief Land Registrar Peter Collis said he did not rule out the possibility of introducing the ACP scheme.

'This revolution means recognising that the industry may well change, and that this will be brought about by new technology,' he explained.

Lord Chancellor's Department minister Michael Wills said the government would keep its options open on ACPs if it benefited the consumer.

Phillip Wallace, partner in south London-based Wallace & Co, said: 'Anything else that contributes to take business away from small high street firms is obviously a worry.'

A Law Society spokesman said it was confident an efficient electronic conveyancing system would make buying and selling property more streamlined and less stressful.

Paula Rohan