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Conveyancing 2030 a DISCUSSION PAPER CLC Conveyancing Whitepaper

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Conveyancing 2030 a DISCUSSION PAPER CLC Conveyancing Whitepaper Council for Licensed Conveyancers Conveyancing 2030 www.clc-uk.org A DISCUSSION PAPER CLC Conveyancing whitepaper Welcome I am pleased to introduce our Discussion Paper on the future of conveyancing. It is an exciting time to be involved in the property sector as technology rapidly replaces the old ways of operating. We are probably just a few short years away from a fully digital conveyancing system that promises a faster transaction and a better experience for all those involved. Digitalisation will open up a range of opportunities for improving the home buying and selling nexperience for consumers. But it will not come without risk, and this paper explores how the conveyancing market is already changing and could be radically reshaped in the years to come. This change points to questions for the CLC as the specialist regulator and for conveyancers as they seek to develop their businesses. While there are many areas of the law where there is little public pressure for Janet Paraskeva - Chair, reform, that is not the case for property and efforts to speed up the process Council for Licensed Conveyancers are already underway. This report examines the longer-term trends and posits a future where the conveyancing market could look very different from today. We do not expect paper and typewriters to suddenly make a resurgence, nor to see a return to personal completions. Instead we expect smart homes to enable properties to maintain an up-to-date electronic logbook that automatically collates much of the information that conveyancers are currently tasked with gathering. In other words, we could bring into existence a ‘digital twin’ for each property. Our aim is to help licensed conveyancers and others think about the impact of these changes on their businesses. Of course we do not seek to offer a future- proof strategy –but to encourage those we regulate to give early thought to what is coming their way. The changes detailed in this Discussion Paper also present significant challenges for the CLC as a regulator. How might we need to adapt our regulatory model to an era of artificial intelligence, for example? We don’t pretend to have the answers, but this report is further evidence that we are actively thinking about the issues and what our response should be. We urge others to do the same and would love to hear your thoughts too. 02 Council for Licensed Conveyancers www.clc-uk.org About this Discussion Paper While it is not the role of this paper to necessarily provide answers to all of the issues raised, we do use it to highlight areas that we believe raise questions that will need answering by regulators, those in conveyancing and wider stakeholders who will affect and influence how conveyancing will develop. In the latter part of this paper, you will find questions and issues we have identified as coming out of our research. We know we have not identified them all, but we will use these and others over the coming year to help us develop our thinking. We encourage you, the readers of this discussion paper, to join us in developing the thinking and contribute to shaping what conveyancing may look like in 2030. ? 2030 Regulating Property And Probate Lawyers 03 CLC Conveyancing whitepaper Future 1 There have been attempts in the past to use technology to improve the What we Conveyancing will home-buying process, such as the be a fully electronic Land Registry’s Chain Matrix system discuss process by 2030 back in 2007. However, none have After assessing how Issues identified by the yet come to fruition, perhaps because matters have developed CLC for discussion: they were ahead of their time. What over the last decade are the barriers to success and why As conveyancing becomes ever more may the next decade be different? and examining current automated, what are the implications trends this paper looks for how the consumer is protected? The Government have previously Will digital conveyancing demand ruled out mandating changes, at a range of potential a new regulatory approach or will but is this incremental market led future developments. principals of legal businesses remain approach the right way? Should accountable for the output of the e-conveyancing be mandated? It The analysis raises technology they either develop would undoubtedly have a huge themselves or buy-in? impact on the market, with the long questions and issues tail of ‘part-time’ conveyancers less for us to consider as a While it is possible to envision a likely to have the ability to cope regulator and we hope time when technology could replace with this. But if progress is too slow, that you will also feel the conveyancer, will clients ever when should government move from be prepared to have a purchase as encouragement to compulsion? you wish to engage with significant as a property transaction these and the wider proceed without the involvement of matters it discusses. a qualified lawyer to advise them and Future 2 ensure their interests are protected? Money and financial information will Technology also has the theoretical move around potential to enable ‘unbundled’ quickly and securely conveyancing, with the consumer taking on more of the process for Issues identified by the themselves. This, though, raises a CLC for discussion: number of issues that will need to be tackled for it to become a reality. How As new risks emerge, is the regulatory will the conveyancer’s responsibility system ready to ensure that those to other parties (such as lenders) risks are managed effectively through be protected? Will consumers regulation by legal and financial understand and be willing to take on specialist regulators? additional risk? Who becomes liable if things go wrong? Will the insurance As new solutions emerge, there are market develop products that will multiple regulators with a potential enable conveyancers and consumers interest in property transactions, to share risks? Just because it may including legal, financial and be possible for this to happen, will it information. Should legal regulators actually be a positive for consumers? take the lead in developing common How will it affect the profitability of standards for providers or is this a conveyancing practices? These are financial regulation matter? challenging questions that we do not attempt to address in this paper. 04 Council for Licensed Conveyancers www.clc-uk.org Future 3 Improving the UK’s standing in the Future 5 World Bank’s Ease of Doing Business It’s all about the data The shape of the index has previously been of concern conveyancing Issues identified by the to Government. A low ranking on market will change CLC for discussion: the ease of property transfer drags down our overall rating. Would Issues identified by the The centrality of data to the future changes such as BASPI and the CLC for discussion: raises big issues that are already live other work of the Home Buying and in other sectors. If the data becomes Selling Group have a material impact Conveyancing businesses are exposed the single source of truth, then what on how easy it is to move and so to many factors out of their control, needs to change to ensure all parties increase our performance against including the overall condition of the can trust the data? Who will validate competitor nations? economy, the state of the housing the information and who becomes market, and changes in attitudes responsible if that data is incorrect or and demographics. CLC practices something goes wrong? recovered from the credit crunch Future 4 better than others but how do we To enable data to flow across the The conveyancer’s ensure that firms are able to prepare system and to allow interoperability, role is going to themselves for future disruption? there needs to be agreed standards change for the data itself. Should the Will new business models need standards be developed by consensus Issues identified by the to emerge and will the existing or is there a role for Government CLC for discussion: predominate model of the practice or others? survive? How may legal businesses What are the new skills conveyancers need to structure to ensure they can As providers begin to develop may need to succeed in this new compete and will this entail different different standards and seek to world? Will curriculum for trainees forms of entity and different impose their approach, is there a need to change and can ongoing funding models? risk that they effectively become training support those who are non-statutory regulators mandating already working in conveyancing? Disruption in many sectors has change without any oversight and Will it be the role of regulators to set been driven by consumers availing imposing additional burdens on competences in this area? themselves of the new technology businesses? There are already many and so driving change. But given similar pressures on conveyancers How do we ensure users of systems that home purchases are a rare from other players who set rules for understand why they have to do occurrence for most, consumer engagement in the process. something rather than just what they influence may be less powerful and have to do? less effective in driving change. So Can insurance play a role in providing where will the power and influence a backstop if things go wrong Do regulators have a role in to drive change reside? for consumers or is the potential facilitating the use of new technology detriment such that we need different within regulated businesses? safeguards? The legal market for conveyancing remains highly fragmented,
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