The Council for Licensed Conveyancers (CLC) has published interim findings revealing transparency issues in referral arrangements between conveyancers and estate agents, with almost half of examined practices lacking proper documentation.
The regulatory body scrutinised 12 solicitor practices and found that five could not produce written agreements covering referral fees from estate agents that were available for customers to view.
Conditional selling under scrutiny
The investigation follows last year’s BBC Panorama documentary that exposed conditional selling practices at a branch of Connells in Oxfordshire. The CLC stated the work was “already in the pipeline, but came to the fore last year following a BBC Panorama programme which raised concerns about conditional selling”.
According to the interim report, referral arrangements can serve a legitimate function in conveyancing by helping consumers access services and supporting collaborative working between estate agents and conveyancers, but only when properly disclosed and documented.
The findings come as the property sector faces increased scrutiny over legal processes, with high-value property sales facing increased legal complexity across the market.
Regulatory recommendations
The CLC has issued 19 recommendations based on the interim findings. These include earlier and clearer disclosure of referral arrangements, strengthening expectations around written agreements and record keeping, and working with the property sector and consumer bodies to improve awareness of disclosure responsibilities.
The regulator also recommends targeted monitoring to assess how effectively any changes operate in practice.
Earlier this year, The Property Ombudsman (TPO) issued guidance to homebuyers on identifying conditional selling by estate agents. TPO confirmed that any pressure for a buyer to use the estate agent’s solicitor or mortgage broker constitutes a breach of its code of practice.
The findings highlight ongoing regulatory challenges in the property transaction process, as authorities work to ensure transparency in professional relationships that may impact consumer choice. A full report from the CLC is expected to follow the interim findings.
