Professional property referrals: a guide for partners

Who this guide is for

This guide is for estate agents, mortgage brokers and law firms working with Keyfolio. It explains how a referral moves from a client's first enquiry to completion, and who is responsible for what along the way.

Keyfolio is a quotation and referral service, not a law firm. The client gets an itemised conveyancing quote and, if they ask to go ahead, Keyfolio introduces them to a panel law firm regulated by the Solicitors Regulation Authority (SRA), the Council for Licensed Conveyancers (CLC) or CILEx Regulation, or, in Northern Ireland, by the Law Society of Northern Ireland. The firm decides whether to accept, sends its own terms of engagement (client care letter) and does all the legal work. Terms with every partner are agreed in writing before any referrals are made.

What a good referral looks like

A good referral serves the client first. It is made with the client's agreement, when they actually need a conveyancer, and with enough information for an accurate quote and a sensible match to a firm.

For example, an estate agent agrees a sale and the seller asks about conveyancing. The agent explains the introduction, including that the agent may be paid for it, and submits the referral with the address, tenure, price and expected timescale. The seller receives an itemised quote, compares it with others if they wish and decides whether to go ahead. Nothing about the sale depends on that decision.

A mortgage broker arranging a remortgage might do the same, adding the new lender's name so that the client is matched with a firm on that lender's panel (the firms the lender allows to act for it).

Client consent and data

Get the client's clear agreement before you pass on their details, and tell them who will contact them and why. Under UK data protection law you need a lawful basis for sharing personal data, and you should share only what the quote and introduction need. Keep a record, such as a file note or the client's own request through your referral link.

A simple script helps. A broker might say: 'Would you like a conveyancing quote from Keyfolio? If you decide to go ahead, they will introduce you to a law firm. We may be paid for the introduction, and you are free to use any conveyancer.'

Do not share information the client has not agreed to share, such as wider details of their finances. If a client asks you to stop, stop, and let Keyfolio know.

Referral fees and disclosure

Law firms on the panel pay Keyfolio under written agreements. The terms, including the firm's referral fee for each matter, are set out in our proposal when a firm applies. Keyfolio may pay the partner who introduced the client, on the terms in its own agreement. The client does not pay Keyfolio anything directly: the firm pays out of the fees it charges, so it is not an extra item on the client's bill. The client is told about the arrangement before going ahead and, before instructing the firm, is told its name and what it pays for the matter. Our referral disclosure page explains this to clients.

Regulators expect openness. The SRA Code of Conduct requires solicitors to ensure clients are told about any financial or other interest an introducer has in referring them and about any fee-sharing arrangement relevant to their matter, and that agreement must be in writing. The CLC's Handbook includes a Disclosure of Profits and Advantages Code requiring licensed conveyancers to be open with clients about referral arrangements and payments, and the CLC has been reviewing whether clients hear about them early and clearly enough.

Estate agents must make referral arrangements clear to buyers and sellers, and National Trading Standards' estate agency team expects the amount to be stated in writing before the client decides. Mortgage brokers should follow the Financial Conduct Authority's rules and their network's requirements. Whatever your sector, tell the client early, in plain words, before they decide.

Information that makes a referral useful

Incomplete referrals lead to inaccurate quotes and slow starts. Include as much as you can:

• Client names, phone numbers and email addresses, and anyone else who will own the property
• The type of work: purchase, sale, both, remortgage or transfer of equity
• The address, price or value, and whether it is freehold or leasehold
• Whether there is a mortgage, the lender if known, and the broker's details
• Anything unusual, such as shared ownership, a new build, a gifted deposit or a company buyer
• Deadlines, such as an auction completion date or a mortgage offer expiry
• The other side's agent and conveyancer, if known
• Your referral code, so the matter is tracked to you

Accountability through the portal

Each partner has a referral link and code, and a portal to submit referrals, see whether each one goes ahead and completes (with the law firm's updates where the client agrees), and see commission. Once a client instructs a firm, the firm deals with them directly.

Law firms have their own portal to accept or decline referrals within a set time, record the stages each matter reaches and set their capacity, regions and lender panels, with the option of using their own prices. Referral fees are invoiced to firms monthly or per matter, as agreed in writing. What the portal shows is factual and is not a promise of a completion date, and the confidential legal file stays with the law firm.

Client choice

The client is always free to choose any conveyancer and to compare the Keyfolio quote with others. Say so when you make the introduction. A client should never feel that a viewing, an offer, a mortgage recommendation or the progress of their sale depends on using a particular firm.

If a client decides not to go ahead, respect that and do not treat them differently. Clients who feel free to choose are more likely to trust your advice on everything else.

Quality controls

Rather than sending every matter to one firm, Keyfolio matches each client to a panel firm by the type of work, where the property is, the client's mortgage lender panel and the firm's capacity. Firms must accept or decline each referral within a time limit. Panel firms remain responsible for conflict checks, anti-money laundering checks, advice, supervision and complaints handling. Read more about our standards.

The law firm confirms every quote in writing before the client instructs it. A client unhappy with the legal work complains to the firm first and can then go to the Legal Ombudsman. Concerns about the referral service go through the Keyfolio complaints process.

Who does what

Clear roles protect everyone:

• Introducers get consent, explain the arrangement, submit accurate details and keep the client updated on the sale or mortgage. They do not give legal advice or promise timescales.
• Keyfolio prepares the quote, discloses the referral fee and introduces the client to a suitable firm, which deals with the client directly from then on.
• Law firms decide whether to accept, send their client care letter, carry out identity checks and all the legal work.
• The client chooses whether to instruct, provides documents promptly and reads the firm's advice.

Next steps

Find out more on our partners page or apply to join. Keyfolio reviews every application and agrees terms in writing before your portal is set up. Law firms can read how joining works for firms.