The closure of PM Law and its associated firms this week has already been covered by the trade press and the BBC. Yet the practical consequences are still unfolding, and for many people, the hardest part is not knowing what happens next.
There are buyers and sellers mid-transaction, some only just underway, others close to exchange or completion. There are estate agents, search providers, lenders and removals firms dealing with sudden disruption through no fault of their own. And there are around 600 employees who lost their jobs unexpectedly, many with little warning and even less clarity.
A small group from across the sector came together this week to compare notes and think about next steps. The shared view was simple. This needs to be handled calmly, collaboratively and in step with the Solicitors Regulation Authority [SRA], which has now intervened and is in charge of what happens next.
The SRA has published a formal notice confirming its action and listing more than 40 affected trading names. That list matters. It allows conveyancers, search providers and others to identify whether cases they are involved in may be impacted. The regulator has also issued guidance for clients, employees and creditors, and that should be the first reference point for anyone affected.
Early estimates suggest that between 20,000 and 30,000 transactions could be touched by this in some way. Not all at the same stage. Not all with the same level of risk. Yet everyone affected will be finding things difficult in their own way.
Some clients will be at an early stage, where only limited sums have been paid. These buyers and sellers will need to instruct a new conveyancing lawyer quickly.
Others will be much further along. In cases close to completion or where exchange has already taken place, deposit monies may have been transferred and are now inaccessible while the SRA works through the client account position. These are the cases causing the most strain.
There will also be chains where only one party is directly affected, yet everyone feels the knock-on effect. Anyone who has handled a fragile chain will recognise how quickly pressure builds in those situations.
More complex still are remortgage cases where funds have been drawn down yet completion has not taken place. Some consumers may find themselves temporarily exposed to two mortgage payments. This is not a niche problem. It is a real one.
There are also completed transactions where registration at HM Land Registry has not yet been finalised. These will need careful handling by newly instructed conveyancers to ensure titles and charges are properly recorded.
Alongside these immediate issues, some wider implications are already surfacing.
There has been talk in some quarters about delaying the sending of completion monies until the day of completion itself. Many across the sector feel this would not have changed the outcome here and risks adding further delay to a system already struggling with timing.
Mortgage lenders may also need to consider how best to support borrowers caught in limbo, particularly where redeemed mortgage monies have not yet reached outgoing lenders through no fault of the consumer.
Search providers can play a quiet yet important role. Where searches have already been carried out and paid for, being able to identify them and make them available to clients or newly appointed conveyancers could remove unnecessary friction at a time when pressure is already high.
Work is now underway on two practical documents. One will provide consumer guidance, subject to SRA approval. The other will focus on supporting displaced employees.
This is not a moment for speculation or blame.
It is a moment for coordination, clarity and care.
Situations like this test how the system behaves under strain. We are seeing that play out in real time.
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