RG Law, a conveyancing firm, reports that homebuyers are increasingly turning to artificial intelligence to create complaints and questions, which are causing delays in property transactions. Clients produce extensive lists of queries without a thorough grasp of their transaction’s context, compelling conveyancers to halt progress and rectify assumptions before moving forward.
AI-generated complaints on the rise
This issue is particularly pronounced in leasehold transactions, where key information may be outstanding from managing agents, freeholders, or the seller’s solicitors. In one case, a buyer used AI to draft a complaint demanding outstanding information within seven days and threatening to withdraw from the purchase, without considering the property’s leasehold status or the recent arrival of the draft contract pack.
Another client submitted questions on fire-safety works, asbestos, reserve funds, and future costs, some of which had already been addressed in provided reports. Loren Ringshall, Conveyancing Case Manager at RG Law, acknowledges that clients may use AI to formulate questions. However, she highlights the difficulty that AI lacks understanding of the transaction’s complete history or responsible parties.
Impact on conveyancing process
The Legal Ombudsman’s data shows residential conveyancing as the most complained-about area of legal practice, accounting for 36% of all accepted complaints. Conveyancing complaints rose 41% year-on-year, with poor communication, delays, and failure to progress among the top concerns. When conveyancers receive AI-generated questions, each point must be checked against the file, potentially involving revisiting reports, reviewing correspondence, and contacting other parties.
This challenge is not unique to property transactions. In other fields, AI tools have produced responses that seem convincing but lack context, as seen in AI’s general limitations. The property sector’s challenge lies in balancing technological adoption with established processes.
Cost implications and industry response
RG Law warns of cost implications, as AI-generated correspondence creates unnecessary work. The Property Ombudsman has ruled out requiring consumers to declare AI use in complaints, stating that their codes govern agents, not complainants. Lesley Horton from the Ombudsman emphasizes that legitimate complaints should not face barriers.
Regulatory scrutiny and industry challenges
The conveyancing sector faces increased regulatory scrutiny over dispute handling, with measures aimed at improving standards. The Property Ombudsman’s rulebook governs agents, not consumers, and does not require complainants to declare AI use.
