I have a question for lenders, borrowers, and solicitors.
Should a broker be cc’d into the correspondence between their clients and their solicitor? And even between the lender/funder and their solicitor?
Ultimately, when pulling together a deal or transaction, the funding is a key element and as such, having everyone on the same page (IMO) is essential to a smooth and stress-free transaction.
From experience, issues arise in transactions through a lack of consistent communication. Especially where the delays in completing create additional tension and stress on relationships and project programmes. I have previously mentioned that “time kills all deals”, and it was largely met with resounding agreement on all sides, so it could be fairly assumed that transparency between parties could create efficiencies.
Having spoken to lenders on a daily basis for years and when asking what their expected turnaround times will likely be, their favourite response is something to the effect of “our internal processes are quite quick, but it all depends on how fast the solicitors can act”.
Casually everyone accepts this as the norm and goes about the next steps. However, in many cases, the finger-pointing game begins shortly after. The lender and their solicitor accuse the borrower and their solicitor that they have not sent or responded to enquiries, or vice versa. And this game continues largely with no transparency or accountability as it becomes hard to prove. Moreover, since the transaction is already stressed at the time the finger-pointing game begins, rather than focus on who is at fault, the best approach is to put the past in the past and pick up on outstanding points to move forwards. This way, no one is held accountable, and the same problem arises on another deal in the near future.
To avoid this finger-pointing game and in the spirit of getting the deal done where time does not wound/kill the deal, there could be a reasonable argument made to bring in a (knowledgeable) broker and cc them in on emails. This will ensure an impartial body can monitor clear communications so transparency, accountability and efficiency in the process can all be part of the road to swift and smooth transactions.
This article was written by Merryoaks Founder & Managing Director, Saam Lowni.