The Impact of Covid 19 on the Legal Industry
The impact of Covid 19 on the property market and conveyancing has been a frequently reported news issue in recent weeks. Social distancing has produced a freeze in the property market and lengthy discussions about how rental and leasehold agreements should be altered due to this crisis have been made. Considering both the economic and business implications of Covid 19, I am interested in both the short and long term impact that this will have on the operation of property law.
In the short term, law firms must provide advice and guidance to clients on the legal implications of social distancing and the frequently changing regulations in place, reflecting the importance of being commercially and politically aware. Additional clauses should be included in contracts to allow for delayed completion, rent commencement date flexibility and amendments to leases on the basis of Covid 19. The importance of certainty for landlords, tenants and mortgage providers prevent this flexibility from continuing once the immediate concerns regarding social distancing and economic instability have ceased.
However, it is possible that, as has been prophesied in many areas of business, Covid 19 will have a long term impact on the way property law practice operates. Firstly, more work may continue to be done at home, potentially resulting in a better work life balance for employees, reduced carbon emissions, and saved money. More virtual work will take place, via phone, email and video call. The sustainability of such changes may be judged by the responses of both clients and employees. It may be decided that traditional practices in this regard are preferable as face to face conversations allow for more free-flowing conversations. Alternatively, this method may be considered more effective and time-efficient than physical meetings. In terms of sustainability of working from home, the effectiveness of this may be measured by whether the same quality work is being produced without a centralised office.
Furthermore, a renewed discussion regarding e-conveyancing may emerge. The Land Registry’s insistence on providing a ‘wet ink’ signature on the execution of deeds may be reviewed due to the practical difficulties social distancing creates. If this is the case, more streamlined and modernised e-conveyancing practice may be produced.
However, the increase of Covid 19 related fraud indicates that this development of property law should proceed with caution. Money laundering during property transactions is a significant problem in the UK. Therefore, hurdles must be overcome in terms of due diligence checks online. Guidance released has included additional digital ID checks and using live or recorded video of the customer. With increased sophistication in technology this information becomes increasingly easy to falsify. Therefore, technology may again be put to the test in this aspect of practice due to the coronavirus.
Current times are extremely uncertain, and the future of property law is difficult to predict. However, as Churchill famously said, ‘an optimist sees opportunity in every difficulty’. Hopefully this difficult time will produce positive outcomes, including the increased efficiency and modernisation of property law practices.
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