Home Information Packs and Insurance Backed Searches
Posted by: katalysis
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HIPs and Insurance backed Search Reports
Home Information Packs are here to stay…..well not just yet! Last minute attempts to block them seem to have resulted in a re-think with the government mulling over a delay in implementation. When or if they do come to pass one thing that is likely to become a bone of contention is Local Searches. You must include information from Local Authorities in a HIP but traditional searches can be both expensive and slow. Because of this and the fact that HIPs are price sensitive HIP providers will be using cheaper and quicker insurance backed search reports from specialist search companies rather than going direct to the Local Authorities. This is fine for sellers because it keeps the cost of the HIP down. But will buyers and their mortgage lenders accept them? The problem is that the data used to compile reports may not be bang up to date so you might get a clear report on a property despite the fact that there has been a recent decision to put a new road through the back garden! If you’re buying and have accepted the sellers Search Report at face value then all you are left with is an insurance claim but will a cheque ever compensate you if you have to live with a road in your garden? Expect prudent buyers and their Solicitors to commission their own searches rather than accept an insurance backed Search Report!