Mike Scott, head of real estate at Cripps Pemberton Greenish, said his firm has been using e-signatures and virtual closing for some time, although this hasn’t been adopted widely in the property sector.
However, not all documents can be signed electronically.
Scott said: ‘One of the main issues for property lawyers is that documents that are registrable at the Land Registry currently require wet-ink signatures so we have no option but to fall back on physical documents and wet-ink signatures in some cases.
‘Lenders also often have stringent requirements, such as execution of documents before lawyers, which cannot now be met. Novel solutions are being discussed and opined upon, but no-one wants to see the enforceability of documents entered into during this period being challenged at a later date.
‘Given the likelihood of a sustained period of office closures and restriction of movement, and to enable transactions to continue, we need all stakeholders (HM Land Registry and lenders in particular) to be looking at their procedures and requirements to ensure that, wherever possible, these are modified to accommodate the reality in which we are all now having to trade.’
Property law firms have had to adapt fast to the strictures of the pandemic in order to protect clients and employees.
Cripps Pemberton Greenish was able to move its entire workforce of 450 people to remote working within a couple of days, and has set up an online advice hub for clients affected by the impact of the coronavirus.
Scott said: ‘We have been working with our clients to try to mitigate the impact so, for example, in anticipation of lockdown we have put in place powers of attorney for some clients which enables execution of documents without the two signatures and common seal which would otherwise have been required.
‘We have worked with other clients to put in place new protocols for executing documents where clients’ offices have been closed and we also look at whether it is possible in any particular transaction to enter into holding documents which do not require wet-ink execution and which allow the final documentation to be completed at a later date.’
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