HIP saga

gilksneim98

:mad:Yet more on the uselessness of a HIP, it now appears that because my pack is 7 months old, the local search MAY be out of date and I may have to either a) pay for another local search or b) pay out on an indemnity policy...as per my solicitors explanation below:

With regards to the indemnity policy it is an insurance policy that if anything is proved detrimental after the event ie there was an entry revealed on a search which could have been obtained but wasnt then the policy will "pay up" any deficiencies. You as seller are offering your property and the title free from any such discrepancies and therefore if the search is out of date you are responsible either for procuring through your lawyers, (me) an up to date search or as I suggested (which still may not be accepted) an indemnity policy.


I find this totally unacceptable but I don't know where to turn or who to complain to, bearing in mind I would like to complain to someone who will actually listen and may do something about this con that is called a HIP.

MissMotivation

I don't know how many more times I will have to write this....however, you have already fullfilled your obligations as a seller by commissioning the HIP in the first place. You are not obliged, even if the seaches are now out of date, to pay for more up to date searches or an Indemnity.

Plenty of sales go through where the Purchasers Solicitor will apply for searches on the Buyer's behalf anyway so why is your Solicitor asking you to pay for new searches or an Indemnity.

Before HIPs were implemented a buyer would pay for their own searches anyway.....let them pay for them if they want them!

maggie111

Am in the process of buying, my solicitor states that if the HIP is over 6 months out of date I need to pay to get the searches re-done. Hardly the sellers fault that their house has been on the market for so long and I require an up to date search.

Speak to other solicitors in your area and gather their opinion... Don't know how difficult it is to jump ship but your solicitors seem keen to get some extra cash don't they!

silvercar

MissMotivation wrote: »

I don't know how many more times I will have to write this....however, you have already fullfilled your obligations as a seller by commissioning the HIP in the first place. You are not obliged, even if the seaches are now out of date, to pay for more up to date searches or an Indemnity.

Plenty of sales go through where the Purchasers Solicitor will apply for searches on the Buyer's behalf anyway so why is your Solicitor asking you to pay for new searches or an Indemnity.

Before HIPs were implemented a buyer would pay for their own searches anyway.....let them pay for them if they want them!

Totally agree. It is for the buyer to satisfy themselves that all is in order and for them to make their decision to purchase. If they want new searches they can buy them.

not_loaded

maggie111 wrote: »

… your solicitors seem keen to get some extra cash don't they!

Just a deceitful solicitor you have there.

This is the equivalent of having to MOT your car every month or week to show it’s still conforming to the rules. Tell him or her to read the Direct.gov website on HIPs.

No way is this necessary!

Richard_Webster

I think attitudes on this must vary in different parts of the country.

Round my way my seller clients have never had to pay for a new search to satisfy their buyer - some have paid for a new search in A HIP to make the HIP "look" newer and disguise how long a proeprty has been on the market - but that's another matter. Equally on a purchaase I routinely ask for the ocst of a repeat search if it is more than 12 months old, but nobody ever offers it. Occasionally they will pay £20-£30 for a "validation policy" which can be sued when the search is between 6-12 months old.

However there are a lot of people coming on this forum worrying about having to pay for fresh searches when selling so I have to assume that in other parts of the country solicitors are taking a harder line and expecting sellers to pay.

MissMotivation

Richard

It seems to be the norm in my area, Midlands, that the buyer's Solicitors will suggest searches even if the ones in the HIP are still valid

Richard_Webster

It seems to be the norm in my area, Midlands, that the buyer's Solicitors will suggest searches even if the ones in the HIP are still valid

I think that is a separate point. A seller won't necessarily know if the buyer's solicitor does his own searches because he is not happy with those in the HIP. I don't think a buyer or his solicitor can expect the seller to pay for those. It is an argument between solicitor and client.

Some solicitors will say that personal searches are only accepted by some lenders at the solicitor's risk and so they won't take the risk. Some will say that the quality of personal searches is not as good as those complied by private search companies. There is some truth in this but it is a question of balance. In most cases my judgement would be that it is not worth spending say £150 to get perhaps 1% more information. Other lenders (principally HSBC/First Direct) will not accept personal searches at all. I don't think in those cases the buyer can say to the seller that he had to pay for a new search because the search in the HIP wasn't accepted by his solicitor. Seller simply says that it is all that is required by the Government.

My point was more about what happens if the only issue with the search is that it is out of date but would otherwise be acceptable.

gilksneim98

My point was more about what happens if the only issue with the search is that it is out of date but would otherwise be acceptable

Apparently local searches expire after 3 months (my council told me this) but again, I've done the right thing legally, hardly my problem if the local search then expires. This is why HIPs are not worth the paper they're written on - sellers beware!

not_loaded

More a case of greedy solicitors wanting two bites of the cherry.

Vendor sol says “more money please” does search, puts in file for no purpose, maybe doesn’t even get round to doing the search.

Buyer sol says “best to do fresh search more money please” does search puts in file.

Bear in mind that sols can be some of the most corrupt people around. In our experience of five sols to date, two honest, three dishonest.