Conveyancing has always been a high risk to Insurers and at the moment this is the main topic of conversation due to so many issues going on for example: 

Multiple transactions in the same development – Insurers are concerned if you are noted as a Preferred Solicitor as you may be relying on the developer for referral work and not being too vigilant about issues that normally concern you. 

Even if you are not the preferred solicitor, there are still risks with dealing with multiple dwellings in a single development, for example, having an error that is repeated in all of the transactions creating multiple claims. Insurers may consider the same error as one claim and your limit of indemnity could quite quickly erode. 

Buyer-Funded Developments and Property Investment Schemes – This is where a development is funded with a substantial deposit, up to 80% of the purchase price in some cases paid by individual buyers as opposed to a commercial lender.

These developments may be flats, holiday developments, care homes or student accommodation. Many of these projects have failed and buyers have lost their deposit and any prospect of any return on their initial investment and then turn to their Solicitor for the advice that was given.  

Does it make a difference what area of the country I practice my conveyancing firm in? 

Yes, if you deal with high net worth property transactions, this will impact your premium as the higher the transaction, the higher a claim could possibly be, but on the other hand, if you deal with a vast amount of small property transactions the more likely there could be a claim for an error.   If you need advice, please contact us on 01536 211888 

Written by Simon Ong

February 2024