TheHipExchange.com: Personal searches v authenticated searches

“Recent comments about the problems associated with personal searches underline the importance of home owners commissioning their own Home Information Packs and not relying on ‘free’ or ‘subsidised’ Packs” says Henry Pryor of The Hip Exchange.

HSBC and other lenders have been incorrectly quoted as saying that they will not now accept personal searches provided by a vendor as part of their Home Information Pack. In fact, as both the Law Society and RICS have said in the dry runs for HIPs, the problem is with the personal search itself which in many cases is purely an insurance policy based upon an online questionnaire. It doesn’t even require a visit to the local authority. In fact the situation for lenders hasn’t changed which traditionally has been that a lender has asked the buyers lawyer, who is also acting for them, to stand behind a personal search if one is done. Understandably, buyers’ solicitors might be reluctant to put their credibility and insurance behind a search that they have not done or commissioned themselves.

“What we are seeing here” continued Pryor “is yet another example of the importance of commissioning your own HIP when you come to sell. This way you can be sure that the EPC element as well as the legal work that goes into the Pack reflects everything necessary for both you and a potential buyer. As with any legal document, it’s worth checking with your lawyer.

“For the time being, the additional cost and time that will be required to obtain authenticated searches won’t impact on sales but form next year, when Packs have to be prepared before a property is marketed, we are bound to find some people having to wait before they can sell their house.