CML respond to Scottish Sep Rep consultation
The Law Society of Scotland (LSS) released the results from their separate representation consultation last week.
The consultation generated 279 responses with 49% in favour and 51% against the proposed rule change.
The results clearly showed opinion was divided on whether there should be a change to the rules in Scotland making separate legal representation mandatory for buyers and their mortgage lenders in property transactions.
The CML has previously raised concerns about the rule change, noting that there both time and cost efficiency benefits to lender and borrower in shared representation.
They believe that the CML Lenders’ Handbook already provides for separate representation in the minority of cases where it is genuinely necessarily (for example if there is a conflict of interest).
They have emphasised its willingness to work with LSS in addressing any concerns regarding the Lenders’ Handbook and to facilitate any refinements that may be desirable.
Kennedy Foster, CML Scotland’s policy consultant, said: “We welcome the LSS’s measured response to their consultation.
“The issue has clearly divided the legal profession in Scotland and we want to engage with the LSS to ensure that lenders, consumers, and solicitors alike are well served by the conveyancing system in Scotland.”