Property transactions in the UK are increasingly affected by regulatory and compliance processes that occur outside the traditional conveyancing timeline, according to analysis from a conveyancing director at RG Law.
Tina Khanna, Conveyancing Director at RG Law, has outlined how additional verification steps now run alongside standard legal procedures, often determining transaction timelines independently of search results or contract negotiations.
Regulatory requirements extend beyond visible milestones
Conveyancers must now maintain continuous oversight of identity verification, sanctions checks and financial assessments throughout transactions rather than completing these at instruction. Source-of-funds evaluations have expanded beyond document collection to include assessments of context and plausibility, particularly for funds involving gifts, business income or overseas sources.
Mortgage lender criteria also continue to evolve during active transactions. Lender conditions are subject to change after the initial offer stage, meaning legal readiness alone does not guarantee exchange can proceed.
Dual representation creates additional dependencies
Conveyancers act for both buyers and lenders, requiring compliance with the UK Finance Mortgage Lenders’ Handbook. This document contains mandatory instructions in two parts: core standards applicable to all lenders and lender-specific requirements covering documentation, reporting obligations and risk policies.
These instructions are non-discretionary. Conveyancers must report relevant information to lenders even when it emerges late in transactions, and cannot proceed until lenders confirm their requirements are satisfied.
Late-stage lender intervention affects completion timelines
Lender intervention during advanced transaction stages has become a frequent source of delays. Additional queries may arise following valuation outcomes, updated documentation, changes in buyer circumstances or internal reviews. Once a file enters lender review, it follows internal risk and compliance processes that cannot be expedited externally.
Conveyancers have no authority to override lender pauses, requiring legal progress to halt until conditions are met.
Document requests reflect regulatory timing requirements
Repeated documentation requests typically result from regulatory timing rather than administrative issues. Evidence provided early in transactions may no longer meet regulatory or lender standards weeks or months later as financial positions change and documents expire. Compliance rules require accuracy at decision points, not when information was initially submitted.
Conveyancers must refresh evidence when timelines extend, even if this appears duplicative to clients.
Accumulated minor gaps compound delays
Transaction delays typically emerge from accumulated minor gaps rather than single missing documents. Late confirmation of gifted deposits, incomplete source-of-funds explanations, delayed responses from managing agents or third parties, and lender follow-up queries all introduce uncertainty requiring clarification.
By the time information arrives, circumstances may have shifted sufficiently to require reassessment rather than immediate progression.
Early transparency reduces later friction
Estate agents can reduce transaction friction by encouraging early transparency around funding arrangements, identifying complex ownership or financial structures at instruction, and preparing clients for ongoing lender involvement beyond the offer stage.
Khanna suggests that explaining continuous checks as standard procedure rather than framing them as delays can reduce client frustration and improve cooperation.
Market implications
The expansion of regulatory requirements in conveyancing adds layers of complexity that are not immediately visible to buyers, sellers or agents. These processes can affect transaction timelines independently of traditional conveyancing milestones, potentially impacting completion rates in a market where transactions are increasingly sensitive to delays.
Understanding where transactions genuinely slow and why may help agents manage client expectations and reduce the risk of deal collapse due to misunderstood delays.
