Council for Licensed Conveyancers Conveyancing 2030 www.clc-uk.org A DISCUSSION PAPER CLC Conveyancing whitepaper www.clc-uk.org Welcome About this Discussion Paper I am pleased to introduce our Discussion Paper on the future of conveyancing. While it is not the role of this paper to necessarily 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 provide answers to all of the issues raised, we years away from a fully digital conveyancing system that promises a faster do use it to highlight areas that we believe raise transaction and a better experience for all those involved. questions that will need answering by regulators, Digitalisation will open up a range of opportunities for improving the home those in conveyancing and wider stakeholders buying and selling nexperience for consumers. But it will not come without who will affect and influence how conveyancing 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 will develop. questions for the CLC as the specialist regulator and for conveyancers as they seek to develop their businesses. In the latter part of this paper, you will find While there are many areas of the law where there is little public pressure for questions and issues we have identified as Janet Paraskeva - Chair, reform, that is not the case for property and efforts to speed up the process Council for Licensed Conveyancers coming out of our research. We know we have are already underway. This report examines the longer-term trends and posits a future where the conveyancing market could look very different from today. not identified them all, but we will use these and others over the coming year to help us We do not expect paper and typewriters to suddenly make a resurgence, develop our thinking. 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 We encourage you, the readers of this discussion tasked with gathering. In other words, we could bring into existence a ‘digital twin’ for each property. paper, to join us in developing the thinking and contribute to shaping what conveyancing may Our aim is to help licensed conveyancers and others think about the impact of look like in 2030. 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. ? 2030 02 Council for Licensed Conveyancers Regulating Property And Probate Lawyers 03 CLC Conveyancing whitepaper www.clc-uk.org Future 1 There have been attempts in the past Future 3 Improving the UK’s standing in the Future 5 to use technology to improve the World Bank’s Ease of Doing Business What we Conveyancing will It’s all about the data The shape of the home-buying process, such as the index has previously been of concern be a fully electronic conveyancing Land Registry’s Chain Matrix system Issues identified by the to Government. A low ranking on discuss process by 2030 market will change back in 2007. However, none have CLC for discussion: the ease of property transfer drags After assessing how Issues identified by the yet come to fruition, perhaps because down our overall rating. Would Issues identified by the matters have developed CLC for discussion: they were ahead of their time. What The centrality of data to the future changes such as BASPI and the CLC for discussion: over the last decade are the barriers to success and why raises big issues that are already live other work of the Home Buying and As conveyancing becomes ever more may the next decade be different? in other sectors. If the data becomes Selling Group have a material impact Conveyancing businesses are exposed and examining current automated, what are the implications the single source of truth, then what on how easy it is to move and so to many factors out of their control, trends this paper looks for how the consumer is protected? The Government have previously needs to change to ensure all parties increase our performance against including the overall condition of the Will digital conveyancing demand ruled out mandating changes, can trust the data? Who will validate competitor nations? economy, the state of the housing at a range of potential a new regulatory approach or will but is this incremental market led the information and who becomes market, and changes in attitudes future developments. principals of legal businesses remain approach the right way? Should responsible if that data is incorrect or and demographics. CLC practices accountable for the output of the e-conveyancing be mandated? It something goes wrong? recovered from the credit crunch The analysis raises technology they either develop would undoubtedly have a huge Future 4 better than others but how do we themselves or buy-in? To enable data to flow across the ensure that firms are able to prepare questions and issues impact on the market, with the long The conveyancer’s tail of ‘part-time’ conveyancers less system and to allow interoperability, role is going to themselves for future disruption? for us to consider as a While it is possible to envision a likely to have the ability to cope there needs to be agreed standards change regulator and we hope time when technology could replace with this. But if progress is too slow, for the data itself. Should the Will new business models need Issues identified by the that you will also feel the conveyancer, will clients ever when should government move from standards be developed by consensus to emerge and will the existing be prepared to have a purchase as encouragement to compulsion? or is there a role for Government CLC for discussion: predominate model of the practice you wish to engage with significant as a property transaction or others? survive? How may legal businesses these and the wider proceed without the involvement of What are the new skills conveyancers need to structure to ensure they can a qualified lawyer to advise them and Future 2 As providers begin to develop may need to succeed in this new compete and will this entail different matters it discusses. world? Will curriculum for trainees ensure their interests are protected? Money and financial different standards and seek to forms of entity and different need to change and can ongoing information will impose their approach, is there a funding models? training support those who are Technology also has the theoretical move around risk that they effectively become already working in conveyancing? potential to enable ‘unbundled’ quickly and securely non-statutory regulators mandating Disruption in many sectors has conveyancing, with the consumer change without any oversight and Will it be the role of regulators to set been driven by consumers availing taking on more of the process for Issues identified by the imposing additional burdens on competences in this area? themselves of the new technology themselves. This, though, raises a CLC for discussion: businesses? There are already many and so driving change. But given number of issues that will need to be similar pressures on conveyancers How do we ensure users of systems that home purchases are a rare tackled for it to become a reality. How As new risks emerge, is the regulatory from other players who set rules for understand why they have to do occurrence for most, consumer will the conveyancer’s responsibility system ready to ensure that those engagement in the process. something rather than just what they influence may be less powerful and to other parties (such as lenders) risks are managed effectively through have to do? less effective in driving change. So be protected? Will consumers regulation by legal and financial Can insurance play a role in providing where will the power and influence understand and be willing to take on specialist regulators? a backstop if things go wrong Do regulators have a role in to drive change reside? additional risk? Who becomes liable if for consumers or is the potential facilitating the use of new technology things go wrong? Will the insurance As new solutions emerge, there are detriment such that we need different within regulated businesses? market develop products that will multiple regulators with a potential safeguards? 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 The legal market for conveyancing practices? These are financial regulation matter? conveyancing remains challenging questions that we do not highly fragmented, attempt to address in this paper. although it is – very slowly – consolidating.