Building trust in property transactions using TPMA, with Quill and Shieldpay
Technology is having a profound impact at all levels of our society. Nowhere is this more true than in theproperty sector, where there is a live debate about the merits of introducing new technological solutionsversus the risk of moving beyond established practices.
This paper aims to advance that debate by examining the role that technology-enabled Third Party ManagedAccount (TPMA) services can play in addressing common issues and improving the experience of propertytransactions in the UK.
Key findings
• Technology-enabled TPMAs have the potential to radically reduce the time and cost burdens of propertytransaction administration and compliance compared to using client accounts, benefitting not just buyersand sellers, but also lawyers, lenders, insurers and regulators.
• TPMAs can help reduce the risk of delays, cancellations, and the misuse of client money, which aremajor problems affecting consumers and professionals involved in property transactions (delays andcancellations due to late funds or property vacation cost UK consumers £15m per year, while the misuseof client money saw payouts of £100m in the preceding five years from the Solicitors Regulation AuthorityCompensation Fund).
• TPMAs are recognised by bodies that regulate Solicitors, Licensed Conveyancers and CILEx practitioners,but clarity is needed on how liability should be apportioned where TPMAs are used as compared with theuse of client accounts.
• While there are plans to issue specific guidance to clarify TPMAs’ regulatory status, awareness amongstconsumers and regulated firms about the benefits of TPMAs is low, which has produced an unwillingnessto adopt them at scale for use in property transactions.
To read the full white paper click here.
