IN THE FIELD -- Positioning yourself in the game

Trust and open communication are the building blocks to a successful referral partnership with a conveyancer - and the benefits go both ways.

Successful brokers understand the benefits of strong referral relationships. And increasingly, brokers are seeing the benefits of conveyancers as referral partners - with good reason.

Conveyancers are property agents. But unlike real estate agents, they are a lot closer to the deal.

Conveyancers often represent buyers - potential borrower clients - who are right at the heart of a property purchase.

There is an industry misconception that a buyer who is on the verge of contractual exchange has already arranged finance. This is not always the case.

Many contracts contain a ‘subject to finance' clause - in other words, a provision that says the contract is conditional upon the borrower being able to secure finance within a certain timeframe before the settlement date.

And that's when a referral relationship with a conveyancer can be invaluable to a mortgage broker.

Conveyancers can refer clients to mortgage brokers whose clients have snapped up a property but have not yet arranged sufficient finance to cover the purchase cost.

Alternatively, a buyer might be looking to refinance - which is where a mortgage broker can come in handy.

The head of new broker recruitment at Loan Market Group, Chris Dobbie, says a substantial number of brokers are turning to conveyancers to build trusted referral relationships.

"It's an individual, rather than a group thing, and many brokers are doing it, as it helps to build better business," Mr Dobbie says.

According to Mr Dobbie, anyone who buys a property will come into contact with a conveyancer at some point. He says that is why it's important for brokers to foster strong relationships with property transactional experts.

"I've had a long-standing business relationship of nine years with a conveyancer and in that time, we have developed a healthy working relationship where we refer each other business," he says.

Conveyancers are also recognising the benefits of having brokers as referral partners. Appleby Conveyancing's principal Elizabeth Appleby has a business referral relationship with Smartline broker Samantha Cranny and says the benefits are twofold.

"First of all, it's a really great way to get your name out there," she says.

"Many people go to a mortgage broker first. So, if a broker gives a customer my name, it's a trusted and valued recommendation that helps give my business more recognition."

Ms Appleby says having a mortgage broker referral partner also helps keep the line of communication open during the property transaction, which in turn benefits the client.

"Having a relationship with a mortgage broker is a good way to keep up-to-date on the buying process," Ms Appleby says.

"Banks can sometimes take longer than expected, so it's good to know that when there are unforseen delays, I can call on the mortgage broker to help chase up the process, and keep me informed."

But to establish a successful business referral relationship with a mortgage broker, communication is important, as is trust.

"I like to know that I can give a mortgage broker a call or send an email, and they will do the same, to keep each other informed of the buying process," she says.

"You need to have a relationship with a trusted professional - someone who will aim to give their best service to the client, and be willing to work together."