As 2024 draws to a close, we spoke with Ian Quayle, founder of IQ Legal Training, to review the key issues and developments that have shaped residential conveyancing this year. From the complexities of the Building Safety Act to evolving trends like digital conveyancing and AI, Ian provides valuable insights and practical advice for practitioners. In this Q&A, he also looks ahead to 2025, sharing thoughts on how conveyancers can navigate ongoing challenges and prepare for anticipated changes in the industry.
Q1: What are the biggest challenges conveyancers faced with Building Safety Act (BSA) transactions this year?
IQ: The Building Safety Act continues to present challenges due to the lack of case law clarifying key issues. As I’ve discussed, cases like Lehner v. Lant Street Management Company Limited offer some guidance, by providing a series of questions that should be asked to determine the application of the Act some of which are particularly useful for residential conveyancers to ascertain whether a property qualifies as a “relevant building” or a “higher-risk building.” Landlord certificates, remediation orders, and service charge implications remain complex, especially where costs involve cladding systems (see AlmaCantar Centre Point v Various Leaseholders of Centre Point House). Conveyancers must be proactive in advising clients on potential liabilities tied to properties in these types of buildings. Hopefully 2025 will provide further case law that enables more light to be shed on the ongoing problems the BSA generates.
Q2: How have recent changes to the TA6 and TA7 forms affected conveyancing?
IQ: The revised TA6 and TA7 forms introduce a whole host of new questions, many of which are challenging for sellers to answer. Sellers now face queries about issues like Japanese knotweed on adjacent properties and Building Safety Act related questions which the average seller is likely to find problematical. The case of Rosser v. Pacifico provides a timely reminder that inaccurate, incomplete, or defective responses can lead to misrepresentation claims. I always recommend scoping the retainer carefully to ensure the client understands the limits of your advice when it comes to the TA forms in the hope that the limitation in the retainer prevents a misrepresentation claim against the seller transmitting into a potential negligence claim against the conveyancer.
Q3: What should clients know about leasehold transactions this year?
IQ: Leasehold transactions continue to be fraught with pitfalls, especially when it comes to service charge issues linked to the Building Safety Act 2022 and the revised TA7 forms.
In addition, there have been developments arising from case law with regard to residential leasehold management issues and the full impact of the Leasehold and Reform Act 2024 is yet to be felt. Of course, added to this courtesy of the Kings Speech this Autumn we have the spectre of the relaunch of commonhold.
Q4: How should conveyancers handle boundary disputes and restrictive covenants?
IQ: Boundary disputes are still a significant headache, often involving unregistered land or conflicting title plans. Again 2024 has seen a plethora of case law dealing with issues old and new. It is important to stress to clients that they cannot rely on title plans and to encourage your clients to carry out thorough inspections. When it comes to restrictive covenants it is important that clients are made aware of their existence but that, unless the opposite applies, your due diligence has not extended to include whether the covenants are in fact enforceable, and if so by whom. Clients need to understand the extent of your due diligence to manage their expectations.
Q5: What emerging trends in conveyancing should practitioners prepare for?
IQ: The world of conveyancing is evolving, with digital processes and AI tools becoming more prominent. Digital conveyancing and electronic signatures are gaining traction, although widespread adoption is probably a year or so away. AI is already being used for tasks like title checks and due diligence. While these technologies won’t replace conveyancers, they’ll certainly change how we work. Keep an eye on upcoming reforms, such as the reintroduction of commonhold and new Law Society guidance on climate change impacts in conveyancing.
Q6: What can conveyancers do to manage risks and avoid claims?
IQ: It’s all about getting the basics right. Regularly review and update the retainer to clarify responsibilities and limitations. The use of interim reports on title and follow-up emails to identify issues and risks and documenting advice should avoid misunderstandings.
Q7: What changes anticipated for 2025 should practitioners keep an eye on?
IQ: We’re expecting further case law on the Building Safety Act in early 2025, which should provide much-needed clarity. The Law Society’s guidance on climate change impacts in conveyancing is also on the horizon early in the year. Digital conveyancing will continue to evolve, and commonhold is likely to make a gradual comeback. While these changes won’t happen overnight, it’s worth staying ahead by keeping your processes and knowledge up to date.