Purpose and Process of Reporting to Client in Property Transaction

The purpose of reporting to the client during a property transaction is to provide the client with a comprehensive and clear understanding of the findings and progress of the transaction. The report serves as a communication tool that allows the client to make informed decisions and be aware of any potential risks or issues related to the property.

Gather information: The solicitor or conveyancer gathers all relevant information and documents related to the property transaction, including the results of the title investigation, searches, survey reports, and any other relevant details.

Organise the report: The information is organised into a structured and easily understandable report. The report should be clear, concise, and tailored to the client's needs.

Introduction: The report usually begins with an introduction that outlines the purpose of the report and the scope of the investigation.

Property description: Provide a description of the property, including its address, boundaries, and any unique identifiers.

Title investigation findings: Present the findings of the title investigation, whether the property is freehold or leasehold, and confirm the current registered owner(s) of the property.

Search results: Summarise the results of all relevant searches conducted, including Local Authority searches, Environmental searches, Water and Drainage searches, and other investigations.

Survey results: If a property survey was conducted, include a summary of the survey results, highlighting any significant physical issues or defects.

Issues and risks: Identify and explain any issues or risks discovered during the investigation, such as boundary disputes, outstanding charges, planning or building regulation issues, or any other matters that may affect the property's title or value.

Legal advice and recommendations: Provide legal advice and recommendations based on the findings. This may include suggestions for further actions, such as obtaining indemnity insurance or negotiating with the seller to resolve issues.

Options and implications: Explain the options available to the client and the potential implications of each option. This allows the client to make informed decisions on how to proceed with the property transaction.

Financial considerations: If there are financial implications related to the findings, such as additional costs or potential impacts on the property's value, these should be clearly outlined in the report.

Timeline and completion: Inform the client of the expected timeline for completing the transaction and any critical dates they need to be aware of.

Conclusion: Conclude the report with a summary of the key points and recommendations, reiterating any critical issues or actions required.

Consultation and discussion: Schedule a meeting or call with the client to discuss the report, answer any questions they may have, and ensure they fully understand the implications of the investigation.

Client acknowledgment: Obtain the client's acknowledgment or signature on the report to confirm that they have received and understood the information presented.

The reporting process is crucial for maintaining transparency and providing clients with the necessary information to make informed decisions during the property transaction. It is essential for the solicitor or conveyancer to communicate effectively with the client, be responsive to their inquiries, and address any concerns they may have to ensure a successful and satisfactory transaction experience.