The Law Society proposes to introduce a new code in 2024 for signing and exchanging property contracts.
The current protocols will be replaced with:-
- The Immediate Exchange Protocol 2024 (replaces formulae A and B).
- Release of Contracts Protocol 2024 (replaces formula C).
- Hold to Order Protocol 2024
The aim is to remove the uncertainty around completing property transactions using new technology.
Many conveyancers and property lawyers already use new technology and forms of digital signing in their day-to-day practice and the Law Society recognises that the law around this is still not completely clear.
Areas that will be addressed include the payment of deposits and the signing and exchanging of contracts.
The Law Society began consultations with Conveyancing Quality Scheme (CQS) firms, local law societies and conveyancing stakeholder organisations in November 2023 with feedback and implementation due in early 2024 but this is likely to be pushed back to later in 2024.
The Law Society recognizes that further changes to the Code and Protocols may be required in the near future to keep pace with the development and wider adoption of smart contracts and fully digital qualified electronic signature (QES) which will again change how contracts are created and exchanged.
A draft version can be found here: Code for signing and exchanging property contracts 2024 | The Law Society
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