The push towards e-conveyancing means time is running out for law firms to get their electronic services up to speed - and those that fail to act now could find themselves out of business, the solicitor founder of a new IT consultancy has warned.

From January 2007, the preparation of a home information pack (HIP) including terms of sale, evidence of title, replies to searches and planning consents, will be mandatory for residential sales. A voluntary 'dry run' of HIPs will start in 2006 and some estate agents, surveyors and search agents are already offering them.


Tim Platel, who recently set up Horizon Legal Sciences, said: 'HIPs will be prepared and distributed electronically. Conveyancing is moving from a paper-based to a digital transaction and firms that fail to make the necessary IT investment or to implement an IT strategy will find it hard to compete.'


He said: 'Once the new law comes in, the lay client is not going to have much say in which law firms are used; the estate agents will be in control of the process. Whoever produces the HIP will almost certainly go on to do the conveyancing and agents will be looking for the quickest and cheapest provider.'


Mr Platel, who also acts as general counsel for case management software company Easy Convey, said: 'Solicitors need to get their act together and create an electronic culture in their practices; e-conveyancing begins now. If by the end of the year a


firm has no Web site, case management software or electronic capabilities they will be out of the game.'


HIPs will also contain a home condition report prepared by accredited home inspectors.


Habitus Surveyors, chartered surveyors specialising in residential property, last week announced plans to add 1,000 surveyors to its network to meet the expected demand.