The Council for Licensed Conveyancers (CLC) has warned that persistent failures in post-completion work raise questions about professional standards, while changes to inheritance tax could increase demand for short-term estate finance.

In its Risk Agenda 2026, the regulator identifies avoidable errors in applications to HM Land Registry as a continuing concern, with practices expected to take greater responsibility for the accuracy of their submissions.

The report also examines risks facing probate practitioners, including the potential consequences of inheritance tax reforms due to take effect in April 2027.

LAND REGISTRY ERRORS UNDER SCRUTINY

The CLC is increasing its scrutiny of avoidable requisitions — requests from HM Land Registry for further information or corrections to applications — which continue to expose inconsistencies in conveyancing practices.

Requisition rates are now considered during regulatory inspections, with the CLC using performance data to identify firms that may need to improve their procedures.

The regulator has written to a number of practices recording higher-than-expected levels of avoidable requisitions, requiring them to submit action plans setting out how they intend to reduce errors.

The effectiveness of those plans will be monitored, although the CLC says it has been encouraged by the response from the firms concerned.

The Risk Agenda states: “Data on requisition rates now shared with the CLC, other regulators, account holders and the public provides greater transparency on performance and should be actively used by practices to benchmark and improve.”

It also challenges the perception that post-completion work is primarily administrative, arguing that the accuracy of Land Registry applications is a fundamental part of a conveyancer’s professional obligations.

The report says: “The CLC expects practices to treat application accuracy as a core professional responsibility.”

INHERITANCE TAX REFORMS RAISE ESTATE FUNDING CONCERNS

For the first time, the annual Risk Agenda specifically addresses probate and other private client work, reflecting the involvement of a significant minority of CLC-regulated practices in these areas.

Among the emerging concerns is the effect of inheritance tax reforms scheduled for April 2027, when unused pension funds and death benefits are due to become part of taxable estates for inheritance tax purposes.

The CLC expects the changes could place additional financial pressure on estates, potentially increasing demand for specialist lending during probate and estate administration.

Practitioners and other stakeholders have told the regulator that more consumers may seek short-term loans to meet inheritance tax liabilities before estate assets can be distributed.

Demand could also increase for beneficiary advances, which allow individuals to access part of an expected inheritance before the estate administration process has concluded.

The CLC, which regulates the reserved legal activity of probate, has increased its engagement with the private client sector. This includes regular discussions with HM Courts & Tribunals Service and participation in its Probate Services Users Group.

TECHNOLOGY AND PROFESSIONAL RESPONSIBILITIES

Other areas identified in the Risk Agenda include anti-money laundering compliance, complaints handling, accounts management, conflicts of interest, breaches of undertakings and file storage.

The regulator also warns that practices cannot afford to overlook technological developments, including artificial intelligence, even where adopting new systems introduces additional considerations around risk and oversight.

The report states: “Ignoring technological change is not a neutral position – it is a risk. Practices must actively engage with innovation, understanding both its benefits and its limitations.”

Stephen Ward, deputy chief executive of the CLC, says: “Rewarding though the work is, the high levels of risk associated with conveyancing and private client matters should always be at the front of our minds. Practitioners understand this and we are pleased that generally we see very high standards across the board.

“But in busy practices, small issues can quickly become big ones if not tackled and the Risk Agenda forms part of our strategy to inform the profession of the regulatory hot spots.

“Prevention and assisted compliance are core to our philosophy – practitioners know this and so regularly engage with us to ensure they continue to operate in the best interests of their clients and the public at large.”