ROT: Required Pre-exchange LM04 Search to Check Lender Instructions

6.4b of the 2022 CQS (CPMS) sets out that firms need to ensure that Part 2 of the UK Finance Handbook is checked by a fee earner to ascertain the lender’s standard requirements, as well as those specific to a transaction, and for verifying that all of those requirements have been satisfied, prior to exchange. In addition there is an obligation to have evidence on file that the check has been carried out. CQS firms ordering LM04 searches may include the following paragraph explaining the legal necessity for the said search and confirm the nominal costs.