Property lawyers must disrupt every process that isn’t fit for purpose

COMMENT The ebb and flow of the pandemic continues to fundamentally change our perceptions about the built environment, whether that’s how we work, where we live or how we spend our leisure time. Covid-19 is bringing about the largest reconfiguration of spatial needs for a generation, not just in the residential markets, but the commercial property sector too.  As individuals and companies adapt their lifestyle habits, working patterns and business approach to these realities, this will catalyse activity as investors, landlords and commercial property owners adopt more forward-looking approaches. Key to their thinking will be reconfiguring portfolios to support their customers and achieve maximum returns for investors based on an understanding of how the world is changing. Last year’s resurgent residential market and rampant house price growth piled persistent pressure on conveyancers, but the signs show that their commercial counterparts are equally busy and will find their workload increases further still. Digitisation, data-led solutions and process efficiencies have never been more critical to success. The transformative potential of tech For too long now, property lawyers have had to rely on antiquated processes that have slowed transaction timelines and, in some instances, thwarted deals. Many commercial law firms have taken this cue to embrace digital ways of working, increase efficiencies and provide a better client experience. We need this spirit of innovation to continue in 2022, when lasting improvements can be driven by small but fundamental changes to key processes. It is all too easy to see each individual process in isolation and favour the status quo for fear of inviting business disruption and extra cost through change. This misunderstands the principle that evolution results from the cumulation of a myriad of individual actions. We must disrupt any and every process that isn’t fully fit for purpose. To do this, we need ambition and action from principal players in the sector – law firms and their clients. But we also need expertise from tech innovators and market disruptors beyond the property sphere. Key processes set for disruption The end of 2021 saw HM Land Registry announce the AP1 process will need to be digitised by November 2022. Up to now 80% of AP1 submissions have been uploads of physical paper documents, swallowing up unnecessary time and inviting inaccuracies. Full digitisation of the AP1 process will be delivered imminently through our AI-driven online platforms and can save over half an hour of processing time for every transaction. Digitising AP1 submissions is a significant step forward and illustrates how incremental innovations can deliver widespread efficiencies.  Another example is the way in which commercial firms obtain a PN1, which is a critical part of every transaction. Currently, a traditional PN1 is only available by post from the Land Registry and the current delays mean weeks can pass without this crucial information. The Illustrative Plan process is another resource-heavy and manual task. These enduring pinch-points show we still have much work to do to maximise efficiency in the commercial property transaction process. Applying technological expertise to improve key property processes has seen Search Acumen develop the Proprietor Name Check and Illustrative Map tool to replace the PN1 and Illustrative Plan process. PNC harnesses the latest data to provide commercial property lawyers with name matches, but also close matches and typos, for ownership information of all assets registered under a company, all within 48 hours. With some commercial firms ordering as many as 500 PN1 searches each month, the scope for time savings is significant. Similarly, the Illustrative Map product provides lawyers with an instant digital colour-coded map, highlighting all individual titles associated with the commercial proprietor’s name. These solutions not only create efficiencies and enhance accuracy but also enable lawyers to deliver improved visibility and transparency to clients much earlier. Digitisation by default We must make 2022 the year where adopting a digitised mindset becomes the default setting for the commercial real estate sector. Digital mapping, AP1 and PN1 processes are two examples of incremental gains, but we need to consider how deep tech can initiate improvements across the board. Widespread adoption of AI can reduce days or even weeks of manual work to minutes. It is inevitable that in the not-too-distant future, AI will become commonplace and provide a way for firms to provide real-time updates. We are optimistic the year ahead will be a transformational period whereby deep tech becomes commonplace, making transactions more accurate, efficient, and cost effective. The key to this is ambition from law firms, commercial property owners and government alongside collaboration with tech innovators. Only then can legal firms make the shift from human-led processes to a business model that puts innovative, technological improvements at the heart of their approach. Andrew Lloyd is managing director of Search Acumen Photo © Search Acumen