A new Digital Escrow service could change the way that mortgage money is dealt with in the conveyancing process.
The Council of Licenced Conveyancers recently trialled a pioneering transaction where the mortgage money was protected by Shieldpay. The buyer, seller and their solicitors can access Shieldpay’s portal. On completion, the money merely moves from the ownership of the buyer to the ownership of the seller.
This process can be seen to protect the buyer and seller in any payment by verifying both, securing funds from the buyer and releasing them to the seller only when both sides agree they are happy to proceed.
The Council of Licenced Conveyancers believe that this will speed up the conveyancing process, as solicitors will no longer need to order the mortgage monies for a certain date.
However, research conducted for the Solicitors Regulation Authority on clients’ conveyancing experiences suggested that the appetite for digital transactions ‘isn’t universal’.
Whether digital mortgages will become the industry norm remains to be seen, but if you require any advice with regards to buying or selling a property, please contact us on 01792 648111 or firstname.lastname@example.org.