Searches or search insurance

Pupster

HI , I am buying a mid terrace and in the process of getting quotes for conveyancing. I am looking to use a local solicitor rather than an online one. One of the solicitors I spoke to said they could make the cost cheaper and the process faster if I had 'search insurance' rather than have searches done. This seems to make sense as surely all the others in the terrace will have these searches done before they bought so why would my little one in the middle be any different. When I raised this with another solicitor I was told I would need these searches if I want to sell in the future - so question 1) - wouldnt a future buyer then do the searches themselves- again! and 2) is search insurance a feasable alternative? All new to me so any simple words of wisdom much appreciated. Thank you

Road_Hog

I no it isn't the question that you asked, but. I wonder how much work is required to get indemnity insurance and how much to actually do the searches. I also wonder how much is the commission given to the solicitor for selling the insurance.

loubel

Pupster wrote: »

1) - wouldnt a future buyer then do the searches themselves- again! and 2) is search insurance a feasable alternative?

1. Yes. Searches are only valid for a few months so new buyers (and their lenders) won't rely on older ones (although they can sometimes give some useful information).

2. It depends on how risk averse you are. If you are planning on living in the property then adverse entries in the searches could have a greater impact on your enjoyment of the property then they would on (for example) an investor. The search insurance is only an insurance policy. It will cover the costs of dealing with adverse entries but they will still exist and have to be dealt with.

Richard_Webster

I no it isn't the question that you asked, but. I wonder how much work is required to get indemnity insurance and how much to actually do the searches. I also wonder how much is the commission given to the solicitor for selling the insurance.

Less work to get the insurance.

Solicitors do not get any commission for these insurances.

Need to check mortgage lender will accept search insurance on a purchase. They are more ready to do so on a remortgage where searches were done on purchase and they are really only insuring against risk of something adverse happening in the meantime.

Frankly on a purchase it is more important to find out what nasties there might be before you buy. Mostly there is nothing much, but every now and then something really nasty and adverse will show up and you will be stuck with it.

G_M

Hmm. So rather than find out a motorway is planned to go through your back garden (OK- extreme example, but you get the idea) you take out insurance.

The insurance won't stop the motorway. Yes, It might pay your costs to move again, or to erect a 10 foot fence to reduce the noise, but will you really want to move? Or live behind a 10 foot fence.....?

Personally I'd rather know about the motorway before I buy the house.