The Solicitors' Indemnity Fund has agreed an undisclosed settlement with Nationwide Building Society over alleged conveyancing errors committed by hundreds of solicitors' firms.

The agreement concludes two years of litigation involving 500 separate legal firms. It concerned lending transactions made in the 1980s and 90s.

Law Society members recently voted to scrap the mutual SIF in favour of the open market.

From September 2000, legal firms will have the option of buying their professional indemnity cover from a panel of approved insurers – the members of which have not yet been decided – or through a group policy which is being set up.

An SIF spokesman said it was bound by a confidentiality agreement from revealing the size of the settlement.