The Gazette 1973

Pretence by House Society Gut-price conveyancing carried out by the National House Owners' Society for its members was conducted under a cloak of pretence to avoid its officers being prosecuted, Sir Joseph Molony, Q.C., told magistrates at Harrow yesterday.

Mr. Duke, its agent at Middlesbrough, who had some conveyancing expertise. Richly rewarded They did the work for "a great deal of money" and "were richly rewarded" said Sir Joseph. Three-fifths of the fee charged was paid to the agent from whose office the transaction was conducted, he claimed. Draft conveyances were then forwarded to Harrow, from where they were sent out with a letter from Blower under the pretence that they had been pre- pared by him. In some cases a copy of the draft was retyped in Harrow. In others, what was sent out was merely a copy typed in Middlesbrough or Exeter. "The idea was to create the pretence that the con- veyance was solely the concern of the honorary con- veyancer and, that by saying he was doing it for nothing, throwing the cloak of protection round agents who were doing it for a great deal," said Sir Joseph. Blower was no conveyancer and the arrangement was "just a sham" he added. Blower held himself out as responsible for the conveyancing document and if the competence of the conveyance was called in question he would have "a great deal to answer for." Sir Joseph said the three defendants took part in preparing conveyancing documents. Under the Act it was for the defence to show that there was no expecta- tion of fee, gain or reward. The magistrates found the cases proved, and awarded costs of £450 to the prosecution, payable in equal amounts of £150 each by the three defendants. Convictions were recorded as follows : Mr. Hickman —four charges—total fines of £200; Mr. Blower—seven charges—total fines of £350; Mr. Duke—four charges— total fines of £200. of the PT/\ when it is involved in a house conveyance and to deal directly with the customer. The PTA is headed by Mrs. Doris Green who gave evidence for the Law Society. It operates from four offices in the South-East and claims 500 satisfied custo- mers. Prices are less than half those of solicitors. For instance, the PTA charges £35 for conveying a £15,000 house on registered land compared with solicitors' recent average fees of £78.75 plus extras. The future of cut-price conveyances may depend on the judgment in the appeal by the NHOS official. An organisation probably breaks the law if an honorary conveyancer acts free of charge but without exercising any skill, for instance, by merely signing or copying the conveyance document. For in these circumstances the paid employee who drafts the conveyance is acting for "fee, gain or reward", and the honorary conveyancer is just a rubber-stamp. The unpaid honorary conveyancer for the PTA is Councillor Frank Reynolds, a lecturer at Birmingham Continued on page 98 97

He was appearing for the Law Society in private prosecutions the solicitors' organisation is bringing against three officers of the House Owners' Society for alleged offences under the Solicitors Act. Mr. Basil Lambert Blower, of Watford Road, Harrow, described as chairman and honorary conveyancer of the society, Mr. Michael Hickmott, 36, of Frankford Farm, Tedburn St. Mary, near Exeter, and Mr. Antony Duke, 58, of Corporation Street, Middlesborough, have pleaded not guilty to 22 summonses under the Act. These alleged that as unqualified persons they drafted or prepared conveyancing documents when acting for buyers of unregistered land for fee, gain or reward. Guitly Plea Mr. Duke, a struck-off solicitor, pleaded guilty to one charge—that as an unqualified person he prepared the assignment of a lease for fee, gain or reward, con- trary to the Solicitors Act. The maximum penalty for conviction under the Act is a £50 fine for each offence, and the case is expected to last for four or five days. Sir Joseph alleged that the House Owners' Society put forward the pretence that draft conveyances were prepared in Harrow by Mr. Blower, the honorary con- veyancer, who, it was claimed, did the work for nothing. Examination of typescripts by experts had shown that in fact the drafts were prepared by Mr. Hickmott, the House Owners' Society's agent at Exeter, and by The Law Society is waging a major new campaign in its battle to stamp out house conveyancing by two cut- price competitors who are trying to break the solicitors' monopoly. It has already secured convictions against three officials of the National House Owners Society one of whom is appealing on a point of law. And last week solicitors were officially advised "not to deal with the NHOS as it is not in the public interest that they should dos o." The NHOS is criticised for employing struck-off solicitors, failing to publish accounts and advertising invalid insurance cover. But the Law Society's case was based on the solicitors technical monopoly, as embodied in the Solicitors Act 1957 which prohibits preparation of the conveyancing document by anyone except a solicitor if it is prepared for "fee, gain or reward". The Law Society bolstered its case with crucial evid- ence from former NHOS employees, some of whom, uhappy with NHOS's administration, formed the breakaway Property Transfer Association last year. Now the Law Society has turned even on their loyal allies. Solicitors are advised at present to ignore the existence

SOLICITORS DECLARE WAR ON CUT-PRICE CONVEYANCING