Search Validation indemnity

boo80

Hi,

We are in the process of buying a house and this morning received a letter from our solicitors saying that we need to pay for a search validation indemnity, as the searches in the HIP are more than 6 months old, and our mortgage lender requires all searches to be less than 6 months.

Do we pay for this or the seller, as we have never seen the HIP and i am not sure that the house has got one?

Richard_Webster

we have never seen the HIP and i am not sure that the house has got one?

If your solicitor says that the searches are more than 6 months old then he must have seen the HIP and it must therefore exist!

Do we pay for this or the seller

This is a matter of argument. The cost is not very much - a leading supplier charges £30 for a policy for a property worth between £100,001 and £200,000. So your solicitor can ask the seller's solicitors if the seller will pay for it - he may already have done this and been told that the seller won't. I routinely ask for this and sometimes succeed. At the end of the day a lot of buyers take the view that it isn't worth wasting a week or so arguing about something like £30.

silvercar

If the solicitor tells you the searches in the HIP are old, then he must have seen the HIP. If the mortgage lender insists on it then you have no option but to pay for the indemnity or pay for new searches.

You could ask the seller, but I doubt they will agree to pay as it is your lender that is demanding this. No harm is asking, particularly in a buyer's market.

bingibongi

& why havent you seen the HIP ? Isnt the whole point of HIPs that they help you in your decision to proceed or not.

If you have indemnity insurance I suggest you get and read a copy of the terms - they are not always pleasent reading and if you need to make a claim your might be in for problems.