Conditions in loan offers

It has been brought to the attention of the Conveyancing Committee that one or more lenders participating in the Residential Mortgage Lending Certificate of Title system (the “System”) are issuing loan offers with conditions requesting the certifying solicitor to confirm certain title matters prior to drawdown. Examples include lenders seeking confirmation of matters relating to roads and services or planning.

Practitioners are reminded that the approved form of Certificate of Title under the System states that a good marketable title means a title of a quality commensurate with prudent standards of current conveyancing practice.

The committee encourages practitioners to maintain an open dialogue with the lender prior to an undertaking being given in order to secure agreement on any proposed qualifications to the Certificate of Title.

Notwithstanding this the committee is of the view that if the relevant title matter is covered by the undertaking solicitor’s Certificate of Title without qualification, then the lender operating within the System should not be seeking separate confirmation of the matter prior to drawdown (or at all).