Handbook

Acting for Lenders and Prevention and Detection of a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Fraud Code & many of our regulatory Codes are underpinned by guidance which identify considerations to be borne in mind when seeking to deliver the identified outcomes; the guidance provided is not mandatoryGuidance

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This Code must be read with the the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct. The the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct is the parent document of the the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC Handbook and Frameworks; it sits above all other Codes in our the sum of Codes, Guidance, Frameworks and Policies, which set out the responsibilities of the Regulated Community and our approach to regulation.regulatory arrangements. The the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct prescribes six Ethical PluralCAPITAL an essential quality; a characteristic, behaviour or ethic, which must be demonstrated so that positive Outcomes are generated for Clients.Principles of behaviour which are essential to delivering the specific delivery of a positive result for Clients; it is the end result of the application of a principle or specific requirement the CLC’s Regulatory Arrangements are focused upon these Outcomes, which everyone who we regulate must deliver.Outcomes which sit beneath each of the Ethical PluralCAPITAL an essential quality; a characteristic, behaviour or ethic, which must be demonstrated so that positive Outcomes are generated for Clients.Principles. All the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC regulated individuals and bodies are expected to comply with the the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct in the delivery of authorised under the Code of Conduct this means that Authorised Persons must personally carry out or supervise the Reserved Legal Activity provided.reserved legal activities and permitted non-under the Code of Conduct this means that Authorised Persons must personally carry out or supervise the Reserved Legal Activity provided.reserved legal activities.

The the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC also publishes several other topic specific Codes addressing important areas of practice, including this Acting for Lenders and Prevention and Detection of a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Fraud Code. Topic specific Codes underpin the the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct and support regulated individuals and bodies in delivering the Ethical PluralCAPITAL an essential quality; a characteristic, behaviour or ethic, which must be demonstrated so that positive Outcomes are generated for Clients.Principles and delivery of a positive result for Clients; it is the end result of the application of a principle or specific requirement the CLC’s Regulatory Arrangements are focused upon these Outcomes, which everyone who we regulate must deliver.Outcomes of behaviour defined in the the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct. Topic specific Codes apply to all regulated activities carried out by the individuals or bodies specified in that Code.

In this Code ‘you’ refers to individuals and bodies regulated by the the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC. You must ensure that you always comply with the the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct and topic specific Codes and must not permit anyone else to act or fail to act in such a way as to amount to a breach of this Code, the the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct, or the Ethical PluralCAPITAL an essential quality; a characteristic, behaviour or ethic, which must be demonstrated so that positive Outcomes are generated for Clients.Principles.

Should circumstances arise in which there is an apparent conflict between a topic specific Code, the the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct, or any other regulatory requirement, you must ensure that you comply with the the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct. If in doubt, contact the the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC for advice.

You must comply with the following a strict direction for conduct that must be complied with.specific requirements:

Part A – Acting for Lenders

1. When acting for a Lender, you take all necessary steps to ensure that the The process of buying or selling land or property.conveyancing services provided by it do not fall below the reasonably competent standard which should be expected.
2. You take all relevant steps to comply with the general and particular mortgage instructions contained in the current edition of Parts 1 & 2 of the Lenders’ Handbook for England & Wales issued by the Council of a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Lenders (“the CML Handbook”).
3. If you suspect a any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client of not being completely honest or transparent about any element of a proposed mortgage transaction, you must consider whether you should continue to act for the Lender and/or the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client.
4. You do not disclose confidential information to the Lender after you have ceased to act for a any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client.

Identity of the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client

5. You establish and obtain proof of the identity of any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Clients in line with the requirements of the CML Handbook and the legislation directed to the prevention of Money Laundering and Combating the Financing of Terrorism, and in particular, the: (a) Proceeds of Crime Act 2002 (as amended); (b) Terrorism Act 2000 (as amended); and Money Laundering Regulations 2007 – SI 2007/2157 (the ML Regulations).Anti-Money Laundering Legislation and Combating the Financing of Terrorism Legislation. You must advise the Lender if a Borrower any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client is unable, reluctant or unwilling to provide this verification.
6. Any system or product you use must be sufficiently robust to provide the necessary degree of certainty and include data from a range of sources, across time and incorporate qualitative checks that assess the strength of the information supplied. Your evidence base and level of verification must be composite and comprehensive.

Identity of the Property

7. You are certain you have correctly identified the property which is to be mortgaged and that the documents of title with which you have been presented accurately relate to and reflect that property, particularly where its name or its boundaries or other significant features have been changed.

an exchange of monies.Transaction

8. In registered title property transactions, you obtain Official Copies of the title and a copy of the Official Plan produced by the Land Registry.
9. You do not complete a mortgage transaction without first obtaining the results of Land Registry, Land Charges or has the meaning given by s. 1(1) of the Companies Act 2006.Company Searches, as appropriate.
10. You carry out a Bankruptcy Search (which must be current at completion) in the registered names of and any other names used by a Borrower or by which he is otherwise known.

    10.1        Where an entry is revealed against the name of the Borrower (or the mortgagor or guarantor) you must certify that the entry does not relate to the Borrower (or the mortgagor or guarantor) if you are able to do so from your own knowledge or enquiries; or if, after obtaining office copy entries or making other enquiries of the Official Receiver, you are unable to certify that the entry does not relate to the borrower (or the mortgagor or guarantor) you make a report to the Lender.

    10.2        You obtain clear bankruptcy searches against all parties to any deed of gift or transaction at an apparent undervalue (paragraph 5.15.4 CML Handbook).

11. You complete a mortgage for a registered title and the application for registration at the Land Registry lodged before the end of the priority period provided by the Land Registry Search. Any search application to create a fresh priority must be made in sufficient time before the expiry of the existing priority period to enable a substantive application to be lodged within the appropriate period if another “hostile” application is revealed.
12. You complete a mortgage over an unregistered title within the priority period provided by the Land Charges Searches. You register your application with the Land Registry within 2 months of the date of completion.
13. Where the Borrower is a has the meaning given by s. 1(1) of the Companies Act 2006.Company you register the charge at Companies House within 21 days (a period which may only be extended by order of the Court).
14. When acting for a Seller or Buyer, Official Copies and Official Plan you must check no additional charges have been registered.
15. When acting for a Seller, you check the Title Entries on receipt from the Land Registry (and before issue to the Buyer’s conveyancer) to ensure that any additional charges are noted and addressed at the outset. This will avoid causing problems in discharging an unequivocal declaration of intention, addressed to someone who reasonably places reliance upon it. It need not be in writing, nor contain the word “undertake”, to be enforceable.undertakings.

a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Redemption

16. To ensure compliance with the the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC’s an unequivocal declaration of intention, addressed to someone who reasonably places reliance upon it. It need not be in writing, nor contain the word “undertake”, to be enforceable.Undertakings Code and with Clause 17 of Part 1 of the CML Handbook, you:-
    16.1        ask a any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client at the outset of any sale or remortgage transaction whether there are any mortgages secured against the property and, if so, obtain details (including relevant mortgage account numbers);

    16.2        specifically ask those any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).clients whether, in addition to the principal mortgage account, they have any other loans with different account numbers with the same Lender (which may be secured against the property) or any other mortgages with any other Lenders and, if so, obtain details (including relevant mortgage account numbers);

    16.3        request an illustrative redemption statement from the Lender at the outset of the transaction giving details of mortgage account numbers, and verify the outstanding amount(s) shown on those statements with your any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).clients;

    16.4        when obtaining either an illustrative or a final redemption figure from a Lender, request a statement of the total amount required to redeem all loans and monies secured by the Lender’s charge over the property. Failure to ask for details of all loans and monies secured by the Lender may 1. their spouse or civil partner;
    2. their child or step-child (if under 18 years of age);
    3. the trustee of a settlement* under which they have a life interest in possession;
    4. an undertaking of which they are a Director;
    5. an employee;
    6. a partner (except where the shareholding or entitlement is a partnership in which the Non-Authorised Person is a partner, another partner);
    7. if ‘the person’ means an undertaking – a director, a subsidiary undertaking (or a director or employee of it);
    8.a person they have agreement or arrangement with respects to the acquisition, holding or disposal of shares or other interests;
    9.a person they have agreement or arrangement with under which they undertake to act together in exercising their voting power (in relation to a body which does not have general meetings at which matters are decided by the exercise of voting rights this refers to the right under the body’s constitution to direct overall policy/alter its constitution); with 3% or more material interest. By ‘settlement’* we mean any disposition or arrangement under which property is held on trust (or a comparable obligation.mean that the redemption figure will only relate to those a current or deposit account (but not a share account) at a branch (or the head office) located in England or Wales of a Building Society or Bank, in each case in the name of the CLC regulated body, and in the title of which account the word ‘Client’ appears.accounts where details have been provided;

    16.5 ensure any discharge an unequivocal declaration of intention, addressed to someone who reasonably places reliance upon it. It need not be in writing, nor contain the word “undertake”, to be enforceable.undertaking given specifies both the identity of the lender and the date of each charge it is intended to discharge in reply to any requisitions on title or otherwise.

a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Instructions

17. You:-
    17.1        check the Lender’s mortgage offer and instructions carefully and ensure that that they match the details of the transaction exactly or otherwise report any discrepancies to the Lender, having first obtained instructions from his Borrower any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client so to do or, if the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client refuses to consent, to cease acting for the Lender;

    17.2        question and clarify any unusual or uncertain instructions before proceeding;

    17.3        cease to act for the Lender if his interests or the interests of anyone working within your body or the interests of the Borrower come into conflict with those of the Lender; and

    17.4        comply with Part B – the a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Fraud Code.

Part B – a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Fraud

18. You immediately cease to act for a any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client in any circumstances where you are aware or suspect that the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client is attempting to perpetrate fraud. If you decide to terminate the retainer, you must inform the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client unless to do so would constitute a “tipping off” offence under the Proceeds of Crime Act 2002 or the Terrorism Act 2000.
19. You maintain your duty of confidentiality to your any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client after ceasing to act for that any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client except where:
    • a court orders such matters to be disclosed
    • a warrant permits a police officer or other authority to seize confidential documents, or
    • there is compelling evidence that the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client was using its services to further a criminal or fraudulent purpose, in which case disclosure should be made to the police.
20. In acting in the best interests of the Lender you may be required to pass on or report information to the Lender. Where the Borrower any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client declines consent to its disclosure, a situation in which an individual or body has an interest, or a party they are representing has such an interest, sufficient to appear to influence the objective exercise of their regulatory responsibilities, in particular the separate duties to act in the best interests of two or more Clients in relation to the same or related matters.Conflict of interest will arise between the duty of confidentiality to the Borrower any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client and the duty to act in the best interests of the Lender. You must therefore cease to act for the Lender (and consider carefully whether you can continue to act for the Buyer).

Identity of the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client and any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client‘s Circumstances

21. You:-
    21.1        establish the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client’s identity in line with the the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC’s Anti-Money Laundering Code and the current Money Laundering Regulations,  obtaining proof of that identity to establish that a any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client is who he says he is and that he lives at the address given;

    21.2        advise the Lender if, in any case, a any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client is unable, reluctant or unwilling to provide this verification;

    21.3        identify all the other owners of the property and other persons who might have an interest in or rights over the property (if any) and ensure that the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client‘s current co-please see Material Interest and Beneficial Owner definitions.owner/partner is, where applicable, the co-please see Material Interest and Beneficial Owner definitions.owner/partner referred to on the title of the property;

    21.4        obtain confirmation of instructions direct from the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client (and from all other interested parties) wherever possible, particularly where he or they communicate through an intermediary and

    1. obtain detailed instructions;
    2. satisfy itself that the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client is not subject to duress or undue influence and
    3. satisfy itself that the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client is entering into the transaction knowingly

    21.5        be satisfied that the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client‘s economic position, wealth and lifestyle correspond with the mortgage that he is proposing to enter into and there are no facts which suggest the potential for mortgage fraud (e.g. that he has not overstated his income in the mortgage application or that he does not have substantial arrears on an existing mortgage account); and

    21.6        check all signatures to reduce any risk of forgery of the signatures of other interested parties (e.g. a husband who forges his wife’s signature).

Linked an exchange of monies.Transaction

22. Having obtained the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client’s instructions to do so, you notify the Lender of any sub-sale or back-to-back element in any transaction and ensure you have the Lender’s written consent before proceeding. If the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client refuses to consent to that disclosure, you cease acting for the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client and the Lender.

Identity of the other a lawyer is a legally qualified person, someone who gives legal advice and represents people in legal matters.lawyers

23. You check the identity of the  a lawyer is a legally qualified person, someone who gives legal advice and represents people in legal matters.CLC Lawyer(s) or Solicitors acting for the other party by reference to the the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC or the Records Department of the Law Society of England & Wales respectively.

Proceeds of Sale

24. You pay particular attention to instructions given for the distribution of the net proceeds of a sale or remortgage:
    24.1        If the property or the mortgage is held in joint names, the net proceeds of sale must be sent to an account in the joint names of all any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).clients or a cheque must be written to all parties jointly

    24.2        The net proceeds are sent to all the parties except as otherwise instructed by all the parties in writing.

Variations in Price, Incentives and other Material Considerations

25. When acting for a Buyer and a Lender, you, with the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client‘s consent, notify a Lender immediately where:-
    25.1        there is an alteration to the purchase price or the details are different from the details set out in the mortgage offer (other than as permitted by the Lender).

    25.2        you become aware of any other information which you would reasonably expect the Lender to consider important in deciding whether, or on what terms, it would make the mortgage advance available to the Buyer.

26. You do not complete the mortgage until the Lender has confirmed that it is happy to proceed and, if applicable, the terms upon which it is willing so to do.
27. You establish and maintain proper systems, procedures, processes and internal strategic management, risk management, accounting and financial arrangements (including supervisory and audit functions) which eliminate, or reduce to acceptable levels, risks to positive Outcomes.controls for approval of Certificates of Title prior to submission to the Lender.
28. You remain mindful of your duty to act in the best interests of the Lender as your any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client.

General

29. You do not witness any signature unless the person signing does so in your presence. You ensure that any signed document which has been witnessed other than by a conveyancer has been properly signed in the presence of a witness.
30. You verify the signatures of any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).clients (and any other interested parties) on all documents connected with a transaction.

Warning Signs

31. You question the probity of unusual instructions and are particularly circumspect if any one or more of the circumstances set out in the “Summary of Warning Signs” Guidelines apply to a transaction where you are acting

Acting for Lenders many of our regulatory Codes are underpinned by guidance which identify considerations to be borne in mind when seeking to deliver the identified outcomes; the guidance provided is not mandatoryGuidance

Checking Identity by Documentary 1. their spouse or civil partner;
2. their child or step-child (if under 18 years of age);
3. the trustee of a settlement* under which they have a life interest in possession;
4. an undertaking of which they are a Director;
5. an employee;
6. a partner (except where the shareholding or entitlement is a partnership in which the Non-Authorised Person is a partner, another partner);
7. if ‘the person’ means an undertaking – a director, a subsidiary undertaking (or a director or employee of it);
8.a person they have agreement or arrangement with respects to the acquisition, holding or disposal of shares or other interests;
9.a person they have agreement or arrangement with under which they undertake to act together in exercising their voting power (in relation to a body which does not have general meetings at which matters are decided by the exercise of voting rights this refers to the right under the body’s constitution to direct overall policy/alter its constitution); with 3% or more material interest. By ‘settlement’* we mean any disposition or arrangement under which property is held on trust (or a comparable obligation.Means

1. The identity of a Borrower can be verified by checking their identity against appropriate original documents provided to you which appear to be authentic, are current and, where applicable, have been signed in the relevant place. A document or a series of documents meeting the expectations contained in Clause 3.1.6 of Part 1 of the CML Handbook is likely to satisfy the Lender’s requirements.
2. Care must always be taken to ensure that the extent of the evidence seen will also meet responsibilities for any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client identity verification under the Regulations and the expectations contained in the the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC’s Anti-Money Laundering and Combating Terrorist Financing Code.
3. Clause 3.2 of Part 1 of the CML Handbook prescribes requirements for safeguards and identity checks.

Checking Identity by Electronic 1. their spouse or civil partner;
2. their child or step-child (if under 18 years of age);
3. the trustee of a settlement* under which they have a life interest in possession;
4. an undertaking of which they are a Director;
5. an employee;
6. a partner (except where the shareholding or entitlement is a partnership in which the Non-Authorised Person is a partner, another partner);
7. if ‘the person’ means an undertaking – a director, a subsidiary undertaking (or a director or employee of it);
8.a person they have agreement or arrangement with respects to the acquisition, holding or disposal of shares or other interests;
9.a person they have agreement or arrangement with under which they undertake to act together in exercising their voting power (in relation to a body which does not have general meetings at which matters are decided by the exercise of voting rights this refers to the right under the body’s constitution to direct overall policy/alter its constitution); with 3% or more material interest. By ‘settlement’* we mean any disposition or arrangement under which property is held on trust (or a comparable obligation.Means

4. You must obtain “satisfactory evidence of identity”, which must be reasonably capable of establishing (and does in fact establish to the satisfaction of the person who obtains it) that the potential any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client is the person he under the Professional Indemnity Insurance Code and Operating Framework and Compensation Fund Operating Framework, unless otherwise stated, this means a request of payment due under the terms of a professional indemnity insurance policy (including the CLC’s Master Policy) or the CLC’s Compensation Fund.claims to be. The the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC considers verification of identity by appropriate electronic 1. their spouse or civil partner;
   2. their child or step-child (if under 18 years of age);
   3. the trustee of a settlement* under which they have a life interest in possession;
   4. an undertaking of which they are a Director;
   5. an employee;
   6. a partner (except where the shareholding or entitlement is a partnership in which the Non-Authorised Person is a partner, another partner);
   7. if ‘the person’ means an undertaking – a director, a subsidiary undertaking (or a director or employee of it);
   8.a person they have agreement or arrangement with respects to the acquisition, holding or disposal of shares or other interests;
   9.a person they have agreement or arrangement with under which they undertake to act together in exercising their voting power (in relation to a body which does not have general meetings at which matters are decided by the exercise of voting rights this refers to the right under the body’s constitution to direct overall policy/alter its constitution); with 3% or more material interest. By ‘settlement’* we mean any disposition or arrangement under which property is held on trust (or a comparable obligation.means to be acceptable, though urges caution. Electronic evidence obtained should provide you with a strong level of certainty that any individual is the person they under the Professional Indemnity Insurance Code and Operating Framework and Compensation Fund Operating Framework, unless otherwise stated, this means a request of payment due under the terms of a professional indemnity insurance policy (including the CLC’s Master Policy) or the CLC’s Compensation Fund.claim to be and that a person of that name lives at the address given using the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client‘s full name, address and date of birth as its basis.
5. Any system or product used must be sufficiently robust to provide the necessary degree of certainty. Data accessed from a single source (e.g. the Electoral Roll) will not normally be sufficient on its own. Some databases will offer a higher degree of confidence than others.
6. Before using a commercial agency for electronic verification, you must be satisfied that:-
   6.1          the information supplied by the data provider is considered to be sufficiently extensive, reliable and accurate; and

   6.2          the agency has processes which allow its users to capture and store the information that they have used to verify an identity.

7. The process should be cumulative and you may consider it appropriate to seek additional evidence (e.g. a copy of a document bearing a signature and a date of birth) in all cases or, at least, where any any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client poses a higher risk of identity fraud, money laundering or terrorist financing, or where the result of any electronic verification check gives rise to concern or uncertainty over the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client’s identity.
8. You may wish to consider whether the provider meets each of the following criteria, namely that it:-
   8.1          is a body corporate or incorporate recognised by the CLC under s.32 of the 1985 Act to provide regulated services to the public.recognised to store personal data through registration with the Information Commissioner’s Office;

   8.2          uses a range of positive information sources that can be called upon to link an as determined by the particular context: 1. any person who intends to apply, or is currently applying, for registration as a CLC student or for a CLC Licence; 2. a body which intends to apply, or is currently applying, for registration as a CLC Recognised Body; 3. a body which intends to apply, or is currently applying, for a Licensed Body (ABS) licence. Approved Person: under the Accounts Code this means: 4. an Authorised Person; or provided the CLC Body is in compliance with 9.1.4 of the Accounts Code, any other appropriately skilled, trained and competent person of integrity who has been authorised on Durable Medium by the CLC Body.applicant to both current and previous circumstances;

   8.3          accesses negative information sources such as databases relating to identity fraud and deceased persons;

   8.4          accesses a wide range of alert data sources; and

   8.5          has transparent processes that enable you to know what checks were carried out, what the results of these checks were and what they 1. their spouse or civil partner;
   2. their child or step-child (if under 18 years of age);
   3. the trustee of a settlement* under which they have a life interest in possession;
   4. an undertaking of which they are a Director;
   5. an employee;
   6. a partner (except where the shareholding or entitlement is a partnership in which the Non-Authorised Person is a partner, another partner);
   7. if ‘the person’ means an undertaking – a director, a subsidiary undertaking (or a director or employee of it);
   8.a person they have agreement or arrangement with respects to the acquisition, holding or disposal of shares or other interests;
   9.a person they have agreement or arrangement with under which they undertake to act together in exercising their voting power (in relation to a body which does not have general meetings at which matters are decided by the exercise of voting rights this refers to the right under the body’s constitution to direct overall policy/alter its constitution); with 3% or more material interest. By ‘settlement’* we mean any disposition or arrangement under which property is held on trust (or a comparable obligation.mean in terms of how much certainty they give as to the identity of the subject of the identity enquiry.

9. Data from more robust sources where inclusion is based on proof of identity (such as government departments) ought to be included (under paragraph 8.2). Negative information checks (under paragraph 8.3) minimise the risk of impersonation fraud.
10. It is also important for:-

    10.1        the process of electronic verification to meet a standard level of confirmation before it can be relied on. In circumstances which do not give rise to concern or uncertainty, the standard level would be expected to be:

    1. 1. one match on an individual’s full name and current address and
       2. a second match on an individual’s full name and either his current address or his date of birth.

    If the result of a standard verification check gives rise to concern or uncertainty over the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client‘s identity, the number of matches required to provide reasonable satisfaction as to his identity should increase.

    10.2        You should ensure you understand the basis of the system you use in order to be satisfied that the sources of the underlying data reflect the the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC’s requirements and cumulatively meet the standard level of confirmation set out above as commercial agencies use various methods of displaying results (e.g. by the number of documents checked or through scoring mechanisms, etc).

Transactional Considerations

11. 11. 1     For a registered title, the date from which the Land Registry search should be made is the date of issue of the Official Copies supplied or obtained at the outset of the transaction and the search should be made in the registered name of the Lender (and not its trading name) to avoid any conflict of priorities.
    11. 2     For unregistered land, searches must be made against all names and any variations on those names on the title documentation and, where an address has changed, a search should be made against any former address and/or counties.
    11. 3     For unregistered land, an Index Map Search must always be undertaken to ensure that the extent of the land to be conveyed is consistent with the title documentation and the Borrower’s understanding.
12. In unregistered title property transactions, it is good practice both when acting for a Seller or a Buyer to make a Land Charges Search at the outset of the transaction to ascertain any entries details of which have not been supplied by the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).clients or are not revealed in the Abstract or Epitome of Title.

a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Fraud many of our regulatory Codes are underpinned by guidance which identify considerations to be borne in mind when seeking to deliver the identified outcomes; the guidance provided is not mandatoryGuidance

1. a loan to purchase a property which is secured by a portion of the value of that property.Mortgage fraud may be perpetrated by one or more participants in a mortgage loan transaction, including the Borrower, or by multiple parties (a mortgage fraud ring) working dishonestly together (and often in a professional capacity).
2. a loan to purchase a property which is secured by a portion of the value of that property.Mortgage fraud is a criminal offence which can often result in imprisonment on conviction. Some conveyancers have been caught up unwittingly in a mortgage fraud, not because of any willfully fraudulent acts on their part but because they have failed to act in accordance with this Code, neglecting to check all details of the transaction and failing where appropriate to report to the Lender for whom they are also acting. They have not appreciated that the circumstances of the transaction might lead to or give rise to fraud.
3. Proceeds of mortgage fraud are criminal property. A conveyancer who assists in such a fraud will facilitate the acquisition, retention, use or control of criminal property contrary to s.328 of the Proceeds of Crime Act 2002. He may also aid and abet a fraud or be complicit in a conspiracy to defraud.
4. a loan to purchase a property which is secured by a portion of the value of that property.Mortgage fraud is likely to require a report to be made to the the law enforcement agency (replaced SOCA) which has harm reduction responsibilities and which targets criminal activities such as fraud, money laundering and identity theft.National Crime Agency.
5. Any attempt to deceive a Lender may expose you to civil action (e.g. breach of contract, breach of trust or negligence) and/or to disciplinary proceedings.

Linked Parties

6. You should always exercise caution if:-
   6.1          there appear to be links between a Buyer and Seller; or

   6.2          you are acting for both parties; or

   6.3          the Seller is a private has the meaning given by s. 1(1) of the Companies Act 2006.company or the Seller has recently purchased from a private has the meaning given by s. 1(1) of the Companies Act 2006.company and the names and addresses of the officers and shareholders of the has the meaning given by s. 1(1) of the Companies Act 2006.company appear to be connected with the transaction, the Seller or Buyer.

Concerns of variations

7. It is in your interests to check whether:-
   7.1          the contract papers have incomplete or missing dates, incorrect descriptions or any sections (particularly the price) which have been left blank;

   7.2          the price shown in the Contract and Transfer documentation differs from the amount actually being paid for the property;

   7.3          any fixtures and fittings included in the purchase price materially reduce the value of the property;

   7.4          the Seller is offering the Buyer any incentive(s) to buy the property unless these clearly fall within a Part 2 CML Handbook dispensation given by the Lender concerned;

   7.5          any allowances are made or any other sum is being set-off against the money payable by the Buyer to the Seller (e.g. for repairs to the property):

   7.6          the Buyer proposes to pay or has apparently paid a deposit direct to the Seller (except for a nominal reservation fee); or

   7.7          there is anything else that affects the price of the property or the amount actually being paid for the property, however small.

8. It is not advisable for you to determine whether any change is material. With your any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client’s consent, you should make a report to the Lender. It is good practice to advise any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).clients at an early stage that
   1. it would be regarded as fraud to misrepresent the purchase price or the existence of any incentives and inducements; and
   2. you have a duty to inform a Lender of the true or underlying price actually being paid for a property.
9. It is good practice to include a term in the a statement on a Durable Medium of all terms upon which instructions are accepted.Terms of Engagement permitting the disclosure to Lenders of material facts relating to the property and the Borrower any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client.

Acting in the best interests of the Lender any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client

10. In the event of the circumstances detailed in paragraph 7 your safest course of action may be to cease to act for both the Lender and the Borrower any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client.
11. Where you cease to act for the Lender in such circumstances, you should return the mortgage instructions to the Lender merely stating that they are returned because of a situation in which an individual or body has an interest, or a party they are representing has such an interest, sufficient to appear to influence the objective exercise of their regulatory responsibilities, in particular the separate duties to act in the best interests of two or more Clients in relation to the same or related matters.Conflict of interests (without giving any further explanation).

Valuations

12. It is good practice to check any valuation supplied by the Lender to check it is not:
    12.1        higher than the actual price being paid for the property or higher than might be expected for a property of that type in the location in which it is situated; or

    12.2        considerably higher than the price paid for the property on any earlier sale or disposal within the last 12 months, taking into account any subsequent inflation or deflation in property prices since the date of that sale or disposal.

13. You are not a valuation expert and cannot be expected to advise on the accuracy of a valuation. Nevertheless, a valuation which is patently out of line with the apparent value of a property may be a ground for suspicion of fraud, particularly where there is a possibility or risk of complicity between prospective Borrowers and Valuers.

Verifications of Signatures

14. This can be done by examination and comparison with signatures on any other available documentation.

Fraud schemes

15. 15. 1     a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Fraud can take the form of fraud for property or profit (or both). It can be opportunistic e.g. parties misrepresenting their income or not declaring other debt obligations; or perpetrated by mortgage fraud rings e.g. organised crime syndicates overvaluing properties, ‘professionals’ not acting professionally, provision of fake IDs, fake firms, flipping, inflated, or low, property valuations, illegitimate source of funds etc. Criminal methodologies are continually evolving but fraud activities have previously included:
        1. criminals posing as the buyer’s new lawyer obtain the mortgage advance instead of the real buyer
        2.   usage of at least one ‘professional’ party to appear to verify the transaction’s legitimacy and reassure other professionals within it
        3.   fraud rings acquiring machinery which produces fake – yet undetectable as such – driving licences for ID purposes, creating fictitious nominated purchasers
        4.   fictitious property or vacant land or non-developed property (particularly targeting property clubs)
        5.   selling property, at inflated values, between related private companies
        6.    back-to-back sales where the first mortgage is not registered against the property (and not redeemed upon second sale completion)
        7.   Equity Release Schemes where the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client sells the property to a fictitious person or mortgage mule, who takes out an inflated value mortgage and on which it makes no payments (or where the person is vulnerable and does not understand the scheme’s conditions and implications)
        8.    purchasing via auction a repossessed property and (usually within a year) seeking external funding against the property, or posing as a property developer seeking bridging loans
        9.     identifying deceased estates through local papers’ notices sections, establishing identity as either the deceased person or a long-lost heir and seeking a mortgage over the existing equity; and
        10.    applying for a County Court Judgement against the please see Material Interest and Beneficial Owner definitions.owner of a repossessed/ unoccupied property concerning a non-existent debt.

    Examples of linked parties and sub-sales schemes:

    15. 2      Sale at an inflated price to an individual by a has the meaning given by s. 1(1) of the Companies Act 2006.company or other entity controlled or owned by her/him may be a device designed to raise additional finance for the has the meaning given by s. 1(1) of the Companies Act 2006.company or other entity and be linked to larger-scale frauds involving tax, improvement grants, etc. Sale by a Borrower to an associate at an inflated price (known as roll-over fraud) can then enable the associate to obtain a higher mortgage. No repayments are made under the mortgage and before the Lender is able to repossess the property, it is sold to another associate for a higher price, and so on.
    15. 3      A Buyer at one price instructs his conveyancer that he will be selling on to a third party at a higher price where the Sub-Buyer is either one and the same person as the Buyer or an associated person where the Seller may or may not also be a party to the fraud. The Sub-Buyer third party obtains a mortgage based on the sub-sale price and secures an immediate profit. The balance between the original sale price and the higher sub-sale price is never paid or is said to be paid by the Buyer to the Sub-buyer or is allegedly set-off by the Buyer against money owed to him by the Sub-Buyer. These transactions often feature a simultaneous exchange of contracts followed by a quick completion, leaving the Lender left with a property worth the original sale-price as security for a much higher loan. A derivative of this fraud occurs where a Seller grants a lease to a Buyer at a ground rent and the Buyer then assigns the lease to a Sub-Buyer at a premium to provide the Sub-Buyer with a legal interest over which he can then obtain a mortgage.

Summary of Possible Warning Signs

16. The following are factors to be taken into consideration within as defined at s.11(3) of the 1985 Act , includes the preparation of transfers, conveyances, contracts and other documents in connection with, and other services ancillary to, the disposition or acquisition of estates or interests in land.conveyancing transactions. Where any of these factors are found the transaction should be approached with caution. That is not to say that in all circumstances listed below that mortgage fraud is likely, or is happening, but there may be increased risk to the the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.Code of Conduct’s delivery of a positive result for Clients; it is the end result of the application of a principle or specific requirement the CLC’s Regulatory Arrangements are focused upon these Outcomes, which everyone who we regulate must deliver.Outcomes.

    16.1 a loan to purchase a property which is secured by a portion of the value of that property.Mortgage/property type	Buy-to-let schemes (large-scale fraud can take the form of large-scale renovation projects, new-build apartment complexes, and on occasion commercial properties) Sub-prime, self-certified, or 100% mortgages Where a Stamp Duty Mitigation Scheme is being used Seller or developer have provided incentives, allowances or discounts (especially if these were previously undisclosed) A lender which is not a mainstream an institution, body, financial intermediary, or financial institution which has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits.bank, building society or similar institution Unencumbered property The property and mortgage do not seem consistent with your knowledge of the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client’s financial position and income sources Cases referred from investment clubs or sale and rent-back companies The property has a history of being re-sold, or mortgages settled, quickly
    16.2 an exchange of monies.Transaction type	The property has a County Court Judgement against it Acting for both the borrower and the seller especially if involving corporate structures You are asked to complete the transaction and transfer the title in accordance with already exchanged contracts Finance is sought after the property has been registered in the buyer’s name You are offered continued work at a higher margin to encourage less diligent checks* Following a court order, the land is transferred but no application for a mortgage is made until some time later There has been a recent transfer of land but no money has changed hands Variance in signatures Instructions to purchase in or transfer a property into the name or names of nominees Instructions from a Seller to remit the net proceeds of a transaction to someone other than the Seller Any instructions from a Buyer or Seller which do not correspond with the normal type of instructions you would expect to receive during the course of a standard residential or commercial as defined at s.11(3) of the 1985 Act , includes the preparation of transfers, conveyances, contracts and other documents in connection with, and other services ancillary to, the disposition or acquisition of estates or interests in land.conveyancing transaction Any transaction which is unusual insofar as it does not follow the normal course or pattern of a standard residential or commercial property transaction A deposit or the difference between the mortgage advance and the price is paid direct or said to have been be paid direct, to the Seller Contract documents are not fully completed by the Seller’s representative, i.e. dates missing or the identity of the parties are not fully described or financial details are not fully stated
    16.3 any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client type	Borrower does not reside at the property ‘Ideal’ occupations and salaries e.g. earning £100,000 or working in a preferred occupation The seller is a private has the meaning given by s. 1(1) of the Companies Act 2006.company, or has recently purchased the property from a private has the meaning given by s. 1(1) of the Companies Act 2006.company Deposit paid by someone other than the purchaser First-time property investment of this scale Current please see Material Interest and Beneficial Owner definitions.owner has owned the property for less than six months; this may indicate flipping  i.e. re-selling a property very quickly for a substantially increased price, usually involves back-to-back sales An existing any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client asks you to rely on former identify checks i.e. ‘reliance’ exemptions The buyer is a corporate purchaser and it is unclear whether the transaction is at arms length i.e. the identity of the beneficial please see Material Interest and Beneficial Owner definitions.owner is not disclosed (or the names and addresses of office holders and shareholders at the has the meaning given by s. 1(1) of the Companies Act 2006.company do not reflect those connected with the transaction) The any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client’s credit history is not aligned to their age (it may be longer or shorter than might be expected) The ‘please see Material Interest and Beneficial Owner definitions.owner’ does not appear to be of the age to have held the property registered to them for the length of time stated
    16.4 Remote any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client	Where a any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client is introduced by a third party (e.g. a mortgage broker or an estate agent) who is not well known to the a person authorised by an Approved Regulator to carry on reserved legal activities e.g: a Licensed Conveyancer; a Solicitor; a Fellow of the Institute of Legal Executives.Authorised Person(s)/Parties or the firm Where a potential any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client wishing to instruct the body for the first time does not live locally to it and has not been introduced by someone known to it and there is no obvious reason why they should place their instructions with it Where a any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client will be using the services of the body for the first time and persuades it to accept instructions from the other party, or the other party instructs the body
    16.5 Secretive any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client	any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client declines to be met or come to the office and/or uses an intermediary to communicate with the body and/or asks the body to contact him at his business or another address rather than at his home address  any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).Client shares an address with one or more other parties to the transaction You suspect that a any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client is not being completely honest or transparent about any element of a proposed mortgage transaction
    16.6 Other parties	Where another a person authorised by an Approved Regulator to carry on reserved legal activities e.g: a Licensed Conveyancer; a Solicitor; a Fellow of the Institute of Legal Executives.Authorised Person(s)/Parties has previously been acting Person acting on the other side of the transaction is not a lawyer (see Dealing with as set out at s.111 of 2007 Act, a person who is not: (1) an Authorised Person in relation to an activity that constitutes a reserved legal activity (2) a registered foreign lawyer (within the meaning of s.89 of the 1990 Act) (3) a person entitled to pursue professional activities under a professional title to which the Directive applies, in a state to which the Directive applies (other than the title of barrister or solicitor in England and Wales) (4) a body that provides professional services, such as provided by persons within (a) or lawyers of other jurisdictions, and all the Managers of which, and all the persons with an interest in which – (i) are within (a) to (c), or (ii) are bodies in which persons within (a) to (c) are entitled to exercise, or control the exercise of, more than 90% of the voting rights.Non-Authorised Persons(third parties) Code & many of our regulatory Codes are underpinned by guidance which identify considerations to be borne in mind when seeking to deliver the identified outcomes; the guidance provided is not mandatoryGuidance) Impatient parties putting pressure on you to complete the transaction quickly where the reason for urgency is not immediately apparent The deposit is paid by the buyer directly to the seller or developer Power of Attorney involved The details/final destination of documents do not match the contact details for the individual/firm provided in the directory of their regulatory/professional body A person claiming to be an a person authorised by an Approved Regulator to carry on reserved legal activities e.g: a Licensed Conveyancer; a Solicitor; a Fellow of the Institute of Legal Executives.Authorised Person(s)/Parties is not registered with the relevant as defined at s.20 of the 2007 Act: the CLC, the Law Society, the General Council of the Bar, the Master of Faculties, the Institute of Legal Executives, the Chartered Institute of Patent Attorneys, the Institute of Trade Mark Attorneys, the Association of Law Costs Draftsmen, the Institute of Chartered Accountants in Scotland, the Association of Chartered Certified Accountants and any such other bodies as are authorised to regulate providers of Reserved Legal Activities.Approved Regulator
    16.7 Diligence	Deed not signed in front of you (enhanced due diligence is required where you do not meet the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client) Reliance on the diligence of another party
    16.8 Valuations	You are requested to alter the value on the Certificate of Title* You are asked to enter a price on the title that is greater than you know was paid for the property Discrepancies in value recorded in documents (including the contract, transfer documents, mortgage instructions, certificate of title to lender, Land Registry forms) Adjustments to the purchase price, particularly in high percentage mortgage cases, or allowances off the purchase price, for example, for alleged works to be carried out The actual and true cash price to be paid is not the stated consideration in the contract and transfer and/or the price shown in the mortgage instructions and in the Certificate of Title submitted to the Lender *if the value is altered without the agreement of the lender this is likely to be in breach of the the Principles that all individuals and bodies regulated by the CLC must comply with at all times in their delivery of legal services: 1. Act with independence and integrity 2. Maintain high standards of work 3. Act in the best interests of your Clients 4. Comply with your duty to the court 5. Deal with regulators and ombudsmen in an open and co-operative way 6. Promote equality of access and service.Overriding Principles 1 ‘Act with Independence and Integrity’ and 2 ‘Maintain High Standards of Work’.

Good Practice

17. The following are examples of good practices which other firms have employed to help prevent, identify and mitigate fraudulent activities. You are not required to adopt these practices, they are provided for your consideration. It is acknowledged that a number the examples provided have been adopted by larger firms; you may wish to consider adopting/tailoring these practices to align with the size and any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client profile of your firm.

    17.1        Due Diligence

    1.  Ongoing management/review of relationships with third parties
    2. Open source internet searches against other firms and its staff, including adverse

       information published by any relevant regulatory bodies and credit-checking

    3. Scrutinising, clarifying and verifying the information received from parties connected

       to the transaction, considering risks presented by new mortgage products

    4. Systems for checking the identity of foreign any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).clients
    5. Checking that deposit monies for a mortgage transaction appear to be from a legitimate source
    6. Considering whether property valuations appear to be reasonable
    7. If your any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client changes while you are acting on a transaction, contact both the old and the new any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client so you understand the reason for the change of any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client and are satisfied that it appears to be for a legitimate reason
    8. Electronic identification check with  each any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client as soon as instruction is received; use a service provider accessing a unique system which matches identity of any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client  using ID and verifying confidential information known only to any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client and provider

    17.2        Staff – Fit & Proper

    1. Pre-employment screening of (depending on the context) an individual employed by a CLC body, by an entity regulated by another legal regulator or by a local authority or other employer.employees
    2. Staff required to disclose situation in which an individual or body has an interest, or a party they are representing has such an interest, sufficient to appear to influence the objective exercise of their regulatory responsibilities, in particular the separate duties to act in the best interests of two or more Clients in relation to the same or related matters.conflicts of interest stemming from their relationships with third parties
    3. Enhanced vetting methods –  e.g. credit checks, criminal record checks, last 5 years employment – applied to different roles

    17.3        Staff – Training

    1. a lawyer is a legally qualified person, someone who gives legal advice and represents people in legal matters.Lawyer trained to review responses given on source of funding source e.g. does the information provided fit the age/ occupation/profile of the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client?
    2. Appropriately trained and experienced staff handle the process; training including mortgage fraud risks, potential risk indicators and the firm’s guidance documents sometimes provide a possible route to the positive outcomes sought, but importantly are not the only route; if a member of the regulated community is able to generate the same or better outcomes another way they are encouraged to do so.approach to handling the issue
    3. Detailed mortgage fraud training for staff (may include scenarios and case studies)
    4. a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Fraud Awareness Manual/Test, updated to reflect new mortgage fraud trends and types
    5. a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Fraud ‘champions’ offer many of our regulatory Codes are underpinned by guidance which identify considerations to be borne in mind when seeking to deliver the identified outcomes; the guidance provided is not mandatoryguidance or mentoring to staff and updates on new  fraudulent methods
    6. Measure, motivate and reward staff in and the steps they take to prevent fraud
    7. All staff receive training on information security procedures

    17.4        Systems/Controls – Risk Assessment Policies

    1. staff are encouraged to report fraud under a clear whistle-blowing policy
    2. Allocate each as defined at s.11(3) of the 1985 Act , includes the preparation of transfers, conveyances, contracts and other documents in connection with, and other services ancillary to, the disposition or acquisition of estates or interests in land.conveyancing file a fraud/risk monitoring level
    3. Systematically consider how management information can be improved and used more effectively to mitigate the risk of fraud; systems/procedures/training evolve according to market  intelligence/pressures (particularly concerning information security, fraud and risk information provided by lender  any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).clients), with has the meaning given by s. 1(1) of the Companies Act 2006.company AML, Fraud and Risk Policies regularly updated, communicated and training provided
    4. System alerts if lawyer on other end of transaction changes or their an institution, body, financial intermediary, or financial institution which has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits.bank account details alter
    5. Reviewing negative databases, such as a list of known fraudsters and the deaths register
    6. Standard specifies by way of endorsements, the Authorisations, Permissions and Conditions of a CLC Licence.Terms and Conditions include a clause that stating the lender any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client will be advised of any relevant information arising; the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client’s attention will be brought to the term and they have to sign their acceptance of this

    17.5        Systems/Controls – specify the reserved legal activities which a body is authorised by the CLC to provide.Authorisations

    1. Accounting functions and strategic management, risk management, accounting and financial arrangements (including supervisory and audit functions) which eliminate, or reduce to acceptable levels, risks to positive Outcomes.controls are separated from transactional any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client facing functions
    2. Money can only be taken from the any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client account when more than one person authorises the transaction

    17.6        Systems/Controls – Quality Assurance

    1. Internal audit and compliance teams regularly monitor the adequacy of underlying any person or persons for whom a Licensed Conveyancer or CLC body acts in the provision of Regulated Services; this may also include a person or persons who may seek the provision of Regulated Services. Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).client take-on methods of organisation including systems, procedures, controls, functions, roles, and processes.arrangements or third party relationships
    2. A formal quality and audit framework to ensure daily quality assurance of key tasks undertaken and full compliance audits carried out on a rotational basis

    17.7        Information Security

    1. Information security management systems certified by an accredited certificate organisation
    2. Information Security systems are compliant with the Department for Business Innovation & Skills many of our regulatory Codes are underpinned by guidance which identify considerations to be borne in mind when seeking to deliver the identified outcomes; the guidance provided is not mandatoryGuidance
    3. The firm has a written information security policy which a senior member of staff oversees

    17.8        Information-gathering

    1. Engage in cross-industry efforts to exchange information about fraud risks
    2. Dedicated Land Registry team producing has the meaning given by s. 1(1) of the Companies Act 2006.company-wide management information

    Should you require many of our regulatory Codes are underpinned by guidance which identify considerations to be borne in mind when seeking to deliver the identified outcomes; the guidance provided is not mandatoryguidance on meeting the requirements of this Code, please see the the Council for Licensed Conveyancers established under s.12 of the 1985 Act.CLC’s Acting For Lenders and Prevention and Detection of a loan to purchase a property which is secured by a portion of the value of that property.Mortgage Fraud many of our regulatory Codes are underpinned by guidance which identify considerations to be borne in mind when seeking to deliver the identified outcomes; the guidance provided is not mandatoryGuidance .