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Tuesday, 29 September 2015

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Tuesday, 1 September 2015

Transparency and Disclosure Requirements in respect of Referral Fees in Conveyancing Transactions






Following the Law Society pushing for a ban on all referral fees for all practice areas, after the ban on referral fees in respect of PI work was approved, the CLC made an application via consultation to the Legal Services Board (in April/May 2013) not to allow an outright ban in terms of referral fees in respect of conveyancing transactions.
The LSB during its research found that by allowing referral fees in conveyancing transactions will be an insignificant risk and there was no real detriment to the client.
However, in approving this, the LSB agreed with CLC in terms of additional disclosure and transparency requirements when dealing with referral fees in conveyancing transactions.
Previously law firms had to advise the client that there was a referral arrangement in place and the amount that would be paid to the referrer/introducer.
However, during its review, the CLC determined that the biggest threat to the consumer interest posed by referral arrangements was the level and timing of information given to consumers.
As a result, the new mandatory transparency and disclosure requirements are that:
  • Agreements with third-party referrers should be in writing and subject to periodic review (as determined by the firm);
  • Clients should be informed in writing of the arrangement’s existence no later than when accepting instructions, or when introducing a client to another person;
  • Clients should be advised they have a choice of provider; and
  • The client should be informed of the nature of the arrangement (including any payment made), with whom it is made, and any impact (including any legal costs they are charged).
So, what does the requirement of advising clients in terms of the fact that they have a choice of service provider actually entail and what obligations does a conveyance have in discharging this onus and fulfilling this requirement-
The Legal Services Board in making their final decision and whilst delivering their final verdict said :-“Clients must be told how they are affected in monetary and other terms by the arrangement”.They will also be told of “any restriction or limitation affecting the introduction” and of their right to shop around.”
So in other words, if a Firm has arrangements in place with a specific introducer/referrer that will say compel the use of a certain providers in relation to that specific conveyancing transaction, for example, to use a specific search company for instance, then that is part of the restrictions/limitations that the client must be made aware of in the CCL, at client instruction stages.
Ultimately, the client must be advised of any limitations/restrictions, in writing, at client take on stage, in terms of any specific limitations/restrictions/arrangements contained in written referral agreements between the Firm and any Introducer/Referrer, which will affect the client, in any manner whatsoever, during their conveyancing transaction.
For example, a conveyancing firm has an arrangement in place via a Panel Manager for the use of specific providers in a conveyancing transaction, eg, to use a specific search company, then the client must be advised that this is the case and by signing and returning the CCL for instance, the client is accepting this arrangement but the client must be told as they must have the choice whether they wish to go along with it or not.ie: the client makes an informed decision. In this way the conveyancer will be complying with the mandatory outcome of “acting in the best interests of the client”
The Conveyancer does not have to give the client various options in terms of different providers (for eg, different search provider companies)- The obligation is just to advise the client in terms of any specific restrictions/limitations that will either directly/indirectly affect the client because of an already existing referral arrangement. Then the client can choose, after being informed if he/she still wants to go with the existing conveyance (having considered the limitations/restrictions) or if he/she wants to choose an alternative service provider.
Licensed conveyancers will now have three months to comply with the new arrangements.
Loschinee Naidoo – Legal Eye Ltd
12 August 2013

Monday, 3 August 2015

Major Differences Between the US and UK Legal Systems








Major Differences Between the US and UK Legal Systems



Attorneys probably already know legal systems in both the U.K. and the U.S. share the same historical common law roots, and are for that reason quite similar. The purpose of this post, though, is to highlight a few of the key divergences in order to give attorneys a sense of how the U.S. and U.K. legal systems differ.

A note on states

Much like the main subdivisions of the U.K. (i.e. England, Wales, Scotland, and Northern Ireland), the states of the U.S. have their own laws, court systems, and bar associations. In the U.S., federal law and court decisions generally take precedence over these state laws and decisions. Powers not granted to the federal government are instead specifically reserved to the states in the U.S. Constitution.

Court systems

Court systems in both countries are quite similar. Minor criminal offenses and small civil disputes are handled by special magistrate courts tasked with resolving such disputes. In the U.S., these are cases for state courts almost exclusively.
More serious crimes and civil cases in both countries are then subject to a three-court hierarchy. In the U.S., at the federal level, criminal cases and civil cases are not heard by separate courts (at the state level, however, many states do have separate court systems for these two types of cases). Cases begin in lower courts (Crown Court in the U.K., District Court in the U.S.), then move on to Courts of Appeals, and are finally resolved in a single Supreme Court, if necessary.
It is important to note that the U.S. does not have a “Tribunal System” as the U.K. does for certain disputes. There are, however, niche courts for certain types of cases (e.g. bankruptcy court is a separate type of federal court). In the U.S., parties may also agree to submit to binding arbitration or mediation as a means of alternative dispute resolution in certain cases. This often provides a less costly, more streamlined, and less adversarial way to conclude conflicts.

Sources of legal authority

Much like courts in the U.K., courts in the U.S. rely mainly on past judicial opinions as authoritative precedent when resolving litigation. In the U.S., these are often referred to as “opinions” or simply “cases,” while the phrase “law report” has become somewhat archaic.
As readers will also likely know, for legislation, the U.S. has two centralized federal bodies, the House of Representatives and the Senate (together, known as the Congress), which are similar to the Houses of Parliament. Each of the 50 states in the U.S. is afforded two senators, while representatives are allocated proportionally based on each state’s population.
In order to become a law in the U.S., a bill under discussion must be approved by a majority of both congressional bodies, and then signed into law by the President. If the President refuses to sign the bill into law, his or her veto can be overridden by a two-thirds majority vote in Congress.

Roles of lawyers

Aside from differences in nomenclature, the roles of lawyers in both countries are quite similar. The terms “barrister” and “solicitor” are not commonly used in the U.S., and litigators and non-litigators are not separately licensed. Instead, once an attorney is admitted to the bar in a particular state, he or she may generally practice any kind of law. For the sake of clarity: court-going barristers are known as “litigators” in the U.S., and solicitors are called “corporate” or “transactional” attorneys, or are referred to in accordance with their area of specialization (e.g., a health care attorney, a real estate attorney, a family law practitioner, etc.).

Legal education

Unlike in the U.K., there is not a requirement to pursue further courses and apprenticeships beyond law school in the U.S. Instead, all prospective lawyers take a three-year course at an accredited law school and receive a Juris Doctor (J.D.) degree upon graduation. Then, students must pass the bar exam in a state of their choosing. After licensure, they may generally practice law in any field of their choosing.
As you can see, the systems are more alike than they are different. Hopefully, this post can serve as a basic guide so that attorneys can get a sense of how the two systems compare.
If you are interested in learning more about U.S. law and how it differs from other countries’ legal systems, consider an LL.M. in U.S. Law.

Wednesday, 8 July 2015

Welcome to Inside Conveyancing





Welcome to Inside Conveyancing. We are dedicated to keeping you updated on all the lastest news and developments within the conveyancing industry. Our Latest News section provides interesting news features and regular updates to keep you fully up to speed on what's current in the conveyancing market.  If you would like to submit any articles which you think would be of interest to our readers, please click here and get in touch with us.
Not only are we are able to offer you the very latest risk and compliance news and features from Legal Eye Limited, who are Lexcel consultants, we are delighted to have teamed up with a top recruitment agency and are able to offer FREE advertising for all jobs in the legal sector.  Furthermore, we have a number of deals for you to take advantage of, ranging from FREE CPD to membership discounts, so make sure you don't miss out!
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Tuesday, 16 June 2015

Conveyancing Association Operations Director Wins IOD Award for leadership in corporate responsibility



13th June 2015
Lloyd Davies, Managing Director of Convey Law and the CA Operations Director, won a prestigious award at the Welsh Institute of Directors Awards ceremony last month as a result of his fundraising endeavours.
The latest conveyancing fundraising initiative is The Matterhorn Challenge in aid of the Ty Hafan Children’s Hospice. Lloyd and the Conveyancing Association are leading the campaign to raise over £50,000.00 for the Ty Hafan Children’s Hospice over the course of the next three months. The Challenge involves Convey Law Conveyancer, Geraint Aubrey, climbing the iconic Matterhorn Mountain in the Swiss Alps at the end of August 2015.
Lloyd commented, "This is a wonderful opportunity for everyone involved in conveyancing to raise significant funds for a very worthwhile charity. We would like the whole of the conveyancing industry to get behind this conveyancing fundraising initiative. All CA members are encouraged to make a donation and we are looking for Sponsors and Stakeholders within the conveyancing industry to help us to promote the Challenge and to raise funds for this wonderful charity. "
On the 20th June, Geraint, Lloyd and 6 other colleagues will be climbing the three highest mountains in Wales, including Mount Snowdon, in support of the Hospice and the Challenge. To find out more about the Challenge or to make a donation please access the website at Conveyancing Fundraising.
The Matterhorn Challenge is a prelude to the launch of the Conveyancing Charity Foundation in September, which has been established to emulate the successes of the Convey Law Free Legal Fee Competition which has raised over £250,000.00 for charity over the course of the last 5 years.
The Conveyancing Association, The Society of Licensed Conveyancers and The Bold Group are all supporting The Matterhorn Challenge.

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Monday, 1 June 2015

The conveyancing industry launches the Matterhorn charity fundraising challenge 1st June 2015





The conveyancing industry, spearheaded by the Conveyancing Association (CA), has launched a mountaineering challenge to raise over £50,000.00 for the Ty Hafan children’s hospice.
The Matterhorn Challenge will involve Convey Law Conveyancer, Geraint Aubrey, climbing the iconic Matterhorn Mountain in the Swiss Alps. The Matterhorn is over 4,000 metres high and represents a significant mountaineering challenge. Last year Geraint climbed three peaks, including the Eiger in the Bernese Alps, and raised over £15,000.00 for Cancer Research UK.
Conveyancing Association Operations Director, Lloyd Davies, commented as follows:
"The Conveyancing Association is delighted to be sponsoring such a fantastic challenge and such a worthwhile cause as Ty Hafan. The hospice provides respite care for terminally ill children and their families and requires a minimum of £3.7 million per annum from private fundraising to survive. We have asked all of our 50 plus CA Members to contribute to the Challenge if possible, with a view to kick starting Geraint’s quest with a £10,000.00 donation.
"We would like everyone in the conveyancing industry to get involved and make a donation if possible. Industry stakeholders such as The Bold Group, The Society of Licensed Conveyancers, Today’s Conveyancer, Inside Conveyancing and Estate Agent Today have all agreed to back the challenge.
"We are looking to achieve sponsorship through Conveyancers, Search Providers, Mortgage Lenders and Estate Agents."
Full details about the challenge, how to make a donation or become a sponsor, is available from the following link: Conveyancing Fundraising
Geraint will be preparing for his challenge by climbing three Welsh peaks including Snowdon, Cadair Idris and Pen-y-Fan in one day on the 20th June, with his work colleagues from Convey Law. Geraint will also be training with Cardiff City FC and the Newport Gwent Dragons rugby team in order to prepare himself for his quest.
Geraint commented:
"I am delighted to be able to support such a wonderful charity as the Ty Hafan Children’s hospice. I have been engaged with the hospice for some time and they provide a fantastic service both to the children and the families that they care for. I am really excited about the prospect of climbing The Matterhorn and engaging the whole of the conveyancing industry in raising a significant amount of money for this wonderful charity."
The Matterhorn Challenge is a prelude to the launch of the Conveyancing Foundation in September of this year. The Conveyancing Foundation is a registered charity designed to raise funds for charitable causes via the conveyancing industry. The Foundation will look to encompass and build on their successes of the Convey Law Free Legal Fee Lottery Competition, which has raised over £260,000.00 for charity over the course of the last 5 years.
Alison Stallard from Ty Hafan commented:
"We are thrilled that the conveyancing industry is supporting the Ty Hafan hospice. We wish Geraint and the team the very best of luck with the Challenge and we will do everything possible on our part to support and promote those companies that support the Challenge. On behalf of the children, their families and everyone at the Hospice, thank you for your wonderful support."