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Conveyancing Practice
Committee - An Interview
with Conveyancing
Practitioners

Foreword by Derrick Wong
Chairman, Conveyancing Practice Committee

The Conveyancing Practice has recently experienced tremendous environmental changes. The doldrums of the 1998 recession, without warning, turned the corner in 2006 and resulted in a property boom in 2007 that caught most firms off-guard. As a result, there was a sudden dearth of conveyancing practitioners. Some lawyers have come out from semi-retirement and other practitioners have switched back to Conveyancing. At the Conveyancing Practice Committee, we thought that it would be a good idea to interview conveyancing practitioners to see what they had to say about their practice and to share their experiences.

Mr Lee Bon Leong, Lee Bon Leong & Co

1. When did you enter the practice of conveyancing and what are your reasons?
I became a conveyancer 35 years ago. At that time, conveyancers were well respected and many of the prominent lawyers, such as Mr CC Tan and Mrs Lee Kuan Yew, were conveyancers. At that time, the land system was primarily under the common law system and the work was different. In conveyancing practice, one had to be able to identify legal issues in land law, trust law, company law and other branches of law. There were consequences if one was not able to identify the legal issues as it could render a title bad. I got a personal sense of satisfaction doing conveyancing work.

2. How or whom did you learn the skills from?
There was a strong sense of camaraderie between conveyancers when I started out. We used to consult each other about problems that we faced. Conveyancers helped each other in the drafting of conveyances. It was considered impudent to amend a conveyance drafted by senior conveyancers. I learnt from my masters the late Mr SK Tan and Mr TPB Menon whom, to this day, I still consider my mentor. I took the law of conveyancing as a subject in my final year varsity law course.

3. Examining the practice of conveyancing then and now, what differences do you encounter?
There are many differences.

Since the change from the common law system to the land titles system, the nature of work appears to be standardised because it is largely form based and some of the work can be delegated to the support staff. In actual fact, the risks are higher while the legal responsibility remains the same. There are many booby traps in each transaction and conveyancers tend to be less forgiving towards each other. If you make a mistake and there is a delay in completion, the other party is likely to insist on late completion interest. For instance, I recall a case where the other law firm insisted on charging my clients late completion interest for two days. On the rescheduled date of completion, the other law firm realised that they were not ready to complete as they did not get a total discharge because of the inexperience of the support staff. The completion had to be delayed by another seven days. Reluctantly I had no choice but to charge them the late completion interest as well. In the past, lawyers would call each other up and the matter could be settled quickly over the telephone. Not many people realise the risks involved.

Also, in a normal property transaction, property agents are the ones who meet the clients first. They prepare the option to purchase thinking that it is a simple standard form document but it is not a 'one size fits all'. Very often, housing agents use the wrong format of option for a specific transaction and the solicitors will have to correct their mistakes by amending the terms and conditions of the option.

The playing field for conveyancers in terms of legal fees is no longer level after the abolishment of the scale fees. It seems that the banks are now the ones who dictate what conveyancers charge by offering clients a package deal which includes the so-called 'legal fee subsidy', and, as a result, there is a preponderance of cases on a handful of lawyers and naturally the standard of practice and the quality of service will drop.

I have turned down many projects because clients insist on bargaining with me on legal fees. The costs of everything from overheads to salaries have gone up. Yet, conveyancing fees have gone down. While I disagree with conveyancers undercutting each other, I understand that it is a question of survival for some. In Singapore, the property market is considered a major sector of our economy and conveyancers play an integral role in this sector. This unhealthy practice will indirectly stifle the growth of the profession as a whole.

It used to be that conveyancers were held in high regard. Now, conveyancers bear the brunt of bad publicity in the press. I am disillusioned with the current state of conveyancing practice and the public perception of the profession.

4. Are clients' expectations very different from what they were previously? Examples?
Yes. Clients used to go to a lawyer because of his reputation and expertise. They were concerned with the quality of the service they received and the performance of the lawyer. Now, their biggest concern is the lawyer's charges. Some of my long-time clients have passed their businesses on to the younger generation. The younger generation does not value the solicitor and client relationship which the parties have built for years. Their priorities are cost-savings for the company. There is absolutely no client loyalty these days.

It is not that these clients are unable to afford the legal services but because they do not see the value that the lawyer can add to the transaction. They don't realise the liability and the level of responsibility involved.

Some clients are savvy and will compare prices between law firms. They want the transaction over and done with. These clients spend more time negotiating legal fees with me than listening to my advice. They want the law firm to give a quotation before appointing them.

5. You obviously have come a long way in conveyancing. What encourages you to continue or keep going?
I continue in the practice partly because there is still the pride imbued in me from the old days. I still have the passion for doing conveyancing work. However, it is also partly because I have no choice. At my age, it is difficult to switch to a different area of practice.

6. Conversely what are your gripes about conveyancing now?
My biggest gripe is the way that the banks have influenced conveyancing practice. They have turned the profession into a mass production line. Legal services are not standardised across the profession and, therefore, cannot be commoditised in this way. The clients do not necessarily benefit from the banks' package deals as they are not given the opportunity to make an informed decision about which law firm to go to. By this practice, conveyancing work is concentrated on a few law firms who have package arrangements with banks. We require a more proportionate and fairer distribution of conveyancing work among lawyers.

In my opinion, only proper enforcement of legislation to ensure that banks do not interfere with the consumer's choice of law firms can make a difference. I hope the day will come sooner and not later.

7. Many lawyers have said that the fees in conveyancing are not commensurate with the effort/skill, time and risk. What is your response?
Let's just say that for a $1m dollar property, conveyancers used to charge up to $5,000. Now the charge is about a couple of thousand dollars for such transactions (inclusive of disbursements), and yet the estate agents normally get one per cent of the value of the property while the lawyers prepare all the work leading to completion and undertake all the risks. Compared with the fee the estate agent charges our professional fee is just a mere pittance.

8. What would you say to your younger aspiring conveyancers?
I would advise a younger aspiring conveyancer to cling on to his professional integrity and bear in mind that he is practising in this area because he enjoys the work. If the young conveyancer manages to stand firm and persevere, he will one day out survive the other conveyancers and become the most experienced in the field. The work will then come to him. In life, the most precious thing for many individuals to own is a home so there will always be conveyancing work. Hopefully, we do not have to see conveyancers as an endangered species, and the property conveyancing a sunset industry.

Ms Elena Tay, Pacific Law Corporation

1. When did you enter the practice of conveyancing and what are your reasons?
I started off practising as a litigator and switched to conveyancing in 1992 because of my passion in dealing with property.

2. How or whom did you learn the skills from?
When I first started doing conveyancing, I learnt my skills mainly by looking through closed files - precedent cases apart from what I learnt in PLC. Subsequently, I learnt a lot through experience.

3. Examining the practice of conveyancing then and now, what
differences do you encounter?
While the scope of the work remains the same, a large part of the processes is done online now and so the turnaround time is expected to be faster. Previously, completion would usually take place within 12 weeks of the exercise of the option to purchase and, now, it is sometimes expected to be done within six weeks.

4. Are clients' expectations very different from what they were previously? Examples?
Clients nowadays expect things to be done speedily and only pay minimum fees for the work. They are not aware of the work that a lawyer does in the conveyancing process. They view the process as simple, straightforward and only as 'secretary's work'. It could be that this mindset arose from their experiences with some law firms where the client never got to see the lawyer at all and had only spoken with a secretary throughout the process. As a result, they do not give due respect to the lawyer's work and bargain for lower legal fees.

Clients are in fact surprised when we explain to them the conveyancing process and the responsibilities and risks involved. One example of the risk that we take is that we would have to absorb any late completion interest if completion did not take place as scheduled due to an oversight on our part because we feel that it is our responsibility not to let such a thing happen.

Clients often think that the conveyancing process only starts after the option to purchase is issued or received and is just a matter of procedures. They do not realise that getting the terms of sale and purchase properly couched and provided for is important and should be the start of the conveyancing transaction and that requires professional advice and legal skills. They also do not appreciate that issues can crop up from time to time relating to the inspection of property, delivery of property after completion, tenancy, legal requisition etc. A conveyancing lawyer handling a case is in a way no different from a litigation lawyer. When issues crop up, we also have to advise our clients of their rights and ensure that their rights are not prejudiced. This takes time and effort.

One example I recently had was with clients who bought an HDB shophouse. The clients thought that they were familiar with the conveyancing process as they bought and sold properties for investment. I quoted them my legal fees and they persisted in negotiating with me. I advised them on the scope of work that would be included in the fees. I also highlighted to them that there could be possible issues from the unauthorised structures on the property. As a lawyer, I would have to foresee the time that I could end up spending on the case. I informed the client that if I quoted a lower fee, I would have to ask the client to pay more if issues cropped up. In the end, the clients decided to accept the flat fee I originally quoted. True enough, issues did crop up over the unauthorised structures. I had to deal with the issues and write to HDB and the opposing solicitors to represent my clients' interest. In the end, the clients got what they wanted and they were appreciative of the effort.

There are also unreasonable clients from time to time who expect the lawyer to do everything for them. One client bought a property and was paying off his loan by monthly instalments using his CPF. He expected us to make changes to the monthly instalments for him. And this was a 20-year bank loan!

5. You obviously have come a long way in conveyancing. What encourages you to continue or keep going on?
It's my passion for the work that keeps me going. It is sad to see that over the last 10 years, conveyancing practice has somewhat degraded and has been viewed as merely an 'administrative process'. From my experience in dealing with clients all these years, I am motivated to protect the client's rights and interests as much as I can and to see that justice is done.

Property is a big investment for many clients and when they come to us, they are not aware of their rights. Or sometimes, they have not read the contracts that they signed. They could also be misled by agents who give them the wrong advice. For instance, I had a client who bought a property subject to an existing tenancy. The agent had informed him that the tenant had the intention to move out before the completion date. The client was, therefore, under the impression that the tenant would leave before the completion date and that he would have vacant possession of the property. I advised the client to speak to the tenant directly to verify the same after reviewing the tenancy agreement which stated that the tenant had a right to renew his tenancy. In the end, the agent had provided false information and the client was unable to move into the property by the completion date. I don't feel good when a layperson gets misled.

6. Conversely what are your gripes about conveyancing now?
One of my gripes is that it disturbs me when clients 'shop' around for the lowest fees for a conveyancing transaction and they negotiate for the legal fees to be reduced, like they are bargaining for goods in a market place. We have received calls wherein enquirers had literally claimed that they could get better rates elsewhere and it's either we take the work or they'll go elsewhere. This does not happen in the medical profession. You don't bargain with a doctor on his fees! It is depressing that the situation is such that we have to compete on fees to get a piece of work when there is a shortage of lawyers in the field.

With the abolition of the scale costs and for the sake of getting more work, solicitors undercut one another and have degraded the whole conveyancing practice. Once fee undercutting is prevalent, consumers would want to get a lower fee and this inevitably becomes a vicious cycle.

Another gripe that I have is that fellow members of the profession are not supportive of each other and do not respect their fellow solicitors' work. We are on the CPF panel of lawyers and have encountered law firms who have complained that we are making things difficult for them when we required legal requisition replies for inspection before disbursement of CPF funds and have been threatened that no work will be referred to us if we are 'demanding' in our handling of the cases.

It is unfortunate that some lawyers do not view their practice as a profession but rather purely as a form of business. They would rather offer clients lower legal fees in order to get more work than to upkeep their professional standards by carrying out quality work and expecting proper remuneration for their work.

I often wonder why other professionals like doctors, dentists, engineers, architects and auditors are able to adhere to their fees at respectable rates but not the lawyers?

7. Many lawyers have said that the fees in conveyancing are not commensurate with the effort/skill, time and risk. What is your response?
The rate of $2,000 (including disbursements) commonly charged in the market certainly does not commensurate with the responsibilities, effort, skill, time and risks undertaken for a case relating to a private property transaction. A lawyer uses his/her professional knowledge and experience to advise clients on their rights and obligations in the transaction, in the mortgage of a property, etc and also has to deal with issues that crop up in the process. In fact, for the same fee, not only does the lawyer have to act for the client, whether as a purchaser or seller in a transaction, he is also answerable to the bank as the mortgagee and the CPF Board if the law firm is also on the CPF Panel of solicitors. The magnitude of a lawyer's responsibilities is also reflected in the requirement of banks for law firms to be covered by a professional indemnity policy of a value at least 30 per cent higher than that of any particular transaction undertaken by the firm.

The fee is indeed pathetic in comparison with the commission earned by the real estate agent in the same transaction, who has less overheads and does not have to assume any risk of liability or bear any indemnity insurance. It is also not uncommon for agents to get to share half of the option fee that is forfeited by the vendor when the purchaser fails to exercise the option and that amounts to a few thousand dollars! On the contrary, the lawyer is either expected to waive the legal fee in view of the aborted transaction or to charge only a nominal fee.

It is sad to say that clients often do not value the lawyer's work in a conveyancing transaction simply due to their misconception that it is merely an administrative task that is procedural for the purpose of transferring title to the property from one to another. They do not realise the number of risks that are undertaken by a lawyer in the handling of title deeds and clients' monies, in ensuring the option is exercised and completion takes place on time, ensuring that the title is in order and legal requisitions are satisfactory, in computing the completion account, title being properly registered, disbursement of loan being done on time (especially in situations when the client sits on the matter) and CPF monies being released on time, etc. Clients are prepared to give the 1-2 per cent commission based on the sale price to agents when a purchaser is secured but they feel the pinch when they are asked to pay $2,000-3,000 to a professional lawyer for protecting their interest in the same transaction!
However, clients cannot be wholly blamed for the current state of things. The offer of legal subsidy made by banks some 10 years ago as a perk to clients coupled with the tie-ups some law firms made with banks to handle cases at $2,000 or even less with the intention to get cases in bulk has really depressed conveyancing fees. Fees dipped further when clients were even told that the legal fees and expenses are to be covered fully by the bank's legal subsidy! With this trend being set for the last 10 years or so, it would be hard to reverse the mindset of clients to pay higher fees even if legal subsidies are removed. Hopefully, with rising costs in all aspects, lawyers would make a concerted effort to ask for more respectable fees that commensurate with their professional services.

As opposed to private property cases, I feel that the same or even a lower rate charged for HDB cases is fair as the scope of work and the extent of risks undertaken for such cases are much lower. Also, this is an area of practice where less of a lawyer's time, skill or experience is needed.

8. What would you say to your younger aspiring conveyancers?
I would advise aspiring conveyancers to remember that, with experience, they would come to realise that in conveyancing work, there are many areas and opportunities where they can apply their knowledge of the law for the benefit of their clients. Do not be discouraged and underestimate the value of their services to the clients, and definitely do not allow the clients to have the misconception that the lawyer's conveyancing work is largely procedural and administrative.

Lastly, maintain the highest level of integrity in the handling of clients' monies and do not put their interest in the fee ahead of their interest in the case so that fairness and justice is administered at all times. There is no short-cut to true success. Whatever efforts they put in, they would eventually be appreciated and rewarded in time to come.

Ms Margaret Chew, Balkenende, Chew and Chia

1. When did you enter the practice of conveyancing and what are your reasons?
I started off as an Articled Clerk in a conveyancing law firm. After I passed the Articled Clerks Law Examinations, I got called to the bar in 1978. I did one year of litigation and found that I was not suited for it. I found conveyancing work more pleasant as it was less acrimonious. Apart from conveyancing work, I also do other solicitors' work such as wills, probate, adoption and general contracts.

2. How or whom did you learn the skills from?
When I first started out, I picked up valuable skills from the conveyancing clerks in my law firm and from my mentor, Mr Goh Joon Seng. In the course of practice, I would also call up Mr TPB Menon if I had questions and he was always very helpful.

3. Examining the practice of conveyancing then and now, what differences do you encounter?
One big difference is that the technology has sped up the pace of work. On the one hand, the convenience of technology has simplified some of our work. For instance, legal requisitions are easy to obtain. On the other hand, the increased pace has led to increased stress. In the old days, we had to read common law title deeds to ensure that the chain of ownership was in order and the entire property was being transferred. When we discovered errors we had to rectify the title documents. Nowadays, we hardly see common law titles and it is much easier to check title under the Torrens System and the chances of error are reduced.

Another difference is that in the past, banks did not give legal subsidies. I can't recall when this practice of giving legal subsidies started. Some law firms who get work from the bank charge such low fees inclusive of disbursements and costs. The conveyancing fee guidelines are not adhered to and some law firms are charging way below the fees that were charged when the scale fees were in place.

4. Are clients' expectations very diff rent from what they were previously? Examples?
After the abolishment of scale fees, clients expect a decrease in their legal fees and they will bargain with me on legal fees 95 per cent of the time. This is exacerbated by the fact that some housing agents tell the client that they can recommend a lawyer who will do the work at a cheap rate. When clients think that they can bargain with you on your fees, they end up losing respect for the profession.

Clients in the past tended to leave things in the hands of the lawyers and they did not expect to be updated all the time. Now more clients will call up to check if they do not get updated information. There are also some who expect their lawyer to do everything for them, including meeting them at their homes to sign documents! When I told them that I had to charge a fee for a house call, they decided to come to my office instead.

What I noticed is that some clients who had their conveyancing done by other lawyers in the past are surprised when I take time to explain the clauses to them. Their previous lawyers did not inform them of their rights and duties.

5. You obviously have come a long way in conveyancing. What encourages you to continue or keep going on?
I am still in conveyancing practice mainly because I am not trained for anything else and because I don't see myself retiring anytime soon. Having said that, I do enjoy my work and I have established a career practising this area of law. I find it especially rewarding when clients refer work to me. Occasionally, I advise a client in a conveyancing matter and the client subsequently comes back to me to do his will.

When this happens, it demonstrates that I have built a rapport with the client and the client appreciates the service that I offer to them.

6. Conversely what are your gripes about conveyancing now?
I think legal fees for conveyancers are one of my biggest gripes and the worst thing is that I don't see how it can be changed. For some reason, housing agents manage to be united in agreement that they would get at least one per cent of the purchase price of the property and this is not anti-competitive. Conveyancers, on the other hand, have undercut each other in the pricing of our services. Now, clients are so used to comparing legal fees that it is difficult to change their mindset. It really leaves a bitter taste.

This leads me to my next gripe that conveyancers get bad publicity because of a few errant lawyers who ran away with clients' money. Clients are distrustful and hesitant to leave their money with the law firm until we explain to them about the procedure and that we need the money to pay stamp fees etc. Fortunately, I have had clients who know me and are happy to stay with me because they know my integrity.

With technology, legal requisitions can be obtained quickly and, therefore, when it comes to second mortgages, the borrowers expect the release of funds to be done immediately but, sometimes, there are constraints as to why we cannot advise the bank to release the funds and this can be a cause of stress.

7. Many lawyers have said that the fees in conveyancing are not commensurate with the effort/skill, time and risk. What is your response?
I agree that the legal fees do not commensurate with the risk involved. In conveyancing, if you make a mistake, you can be sued for negligence. Because of this, insurance companies ask for top ups in premium for property transactions of larger value. Our clients don't know the difference in risk between an $800,000 property and a $1.5m property and expect to pay the same legal fees.

8. What would you say to your younger aspiring conveyancers?
I would advise younger conveyancers to diversify their area of practice so that their income is not dependent on the fluctuations of the property market.

Many in the conveyancing profession have talked about conveyancing as a sunset industry for many years now due to the trend in other countries such as Australia and America. In the event that lawyers are no longer needed to do conveyancing, diversification would also ensure that you would be able to practice in another area of law.

Loo Chuan Lin
The Law Society of Singapore