The situation with regard to mortgagees quoting inaccurate redemption figures is one with which I am closely concerned (see [2007] Gazette, 20 September, 5; 27 September, 16; 4 October 14). We had a case some time ago where we obtained a redemption figure, which we paid immediately and also paid our client the balance, to be told a month afterwards that there was a further sum due.


We relied upon the references to the Council of Mortgage Lenders contained in the Guide to the Professional Conduct of Solicitors (1999) to the effect that where a building society or a mortgagee has quoted an incorrect figure, the solicitor should not be put in breach of his undertaking.



However, the purchaser's solicitors made a complaint to the Solicitors Regulation Authority, which has now been investigated. The authority has written in the following terms: 'This office is satisfied that you forwarded the amount specified by the lender as required to pay the account on completion (which was less than the total amount outstanding because the lender's had given us the wrong figure) and forwarded the discharge document in accordance with your undertaking.'



As a further precaution, when requesting redemption figures we now have a paragraph in our letter saying that we rely entirely upon the information given by the mortgagee as being the correct amount outstanding but that, if subsequently they quote different figures, we would not be responsible for any further payments.



With great respect to the Financial Services Authority, its response in the original article - that this was 'simply a problem between the two solicitors' - is unfortunately transparent nonsense because there is no reason why solicitors should be put in the position which they are by lenders who cannot get the redemption figure right.



Brian Woodhams, E Rex Makin & Co, Liverpool