Cheaper local authority searches by third party

greeneggsandham

Hi all, I'm just embarking on the process of selling, buying & moving house (eek!). I've been getting quotes for conveyancing and there's quite a large variation in the charges for disbursements such as local authority searches, between different solicitors. One of them was about half the price of the rest, so I emailed them to ask why. They said that they use a third party to do the searches for a much lower rate than the local authority would normally charge. Does anyone know anything about this and is it safe? Are there any risks to doing the searches this way? Interestingly, this was the only firm that was on the ball in quoting the new reduced land registry fees, for which they get bonus points from me!

da_rule

These are probably 'personal searches' and they may be cheaper because the agent goes to the council and looks through the records themselves and report on that, rather than the council employees doing it. You would have to check with your mortgage lender as to whether they accept personal searches.

greeneggsandham

Ah, that makes sense, although I wonder whether the searches will be as thorough and cover all the same things? Mortgage lender won't be an issue because I'm pleased to say I've achieved MSE Nirvana of being mortgage-free (albeit in a very modest house/area, and after many years of living like a Sadhu!). So I'm more concerned with being adequately covered for problems that might arise and not getting into a sticky situation for the sake of saving a couple hundred ££. On the other hand, I can well imagine the LA charging ridiculous amounts just to send someone downstairs to extract some info from a record and post it off!

kingstreet

Agree with da_rule.

Have the solicitor which commissions such searches check the CML Handbook to see if your lender accepts them, before instructing that solicitor.

No point quoting the cheapest form of search if that particular client can't benefit from it!

greeneggsandham

Makes me think though, there must be a reason why some lenders don't accept them....??

da_rule

The agent should have some form of liability insurance in case they make a mistake, check with your solicitor. But, if they are someone that the solicitor recommends then they will probably be o.k. (as long as it's a reputable solicitor), as the solicitor has a duty to you as their client not to recommend a service that isn't fit for purpose.

greeneggsandham

So I guess the thing to do is make sure the solicitor is properly accredited and maybe ask them if there's any kind of liability insurance? I had the agents round this afternoon to do the valuations, I asked one of them and he hadn't heard of these kinds of searches either. I have found out that when its just a transfer or remortgage or whatever, you can just forego the searches and have some kind of indemnity policy instead, but I'll be buying in an area I don't know particularly well, so would think the searches are essential even if not a requirement.

davidmcn

greeneggsandham wrote: »

They said that they use a third party to do the searches for a much lower rate than the local authority would normally charge. Does anyone know anything about this and is it safe?

It's been the norm in Scotland for about 10-15 years now, hardly anyone tries to get searches directly from the local authorities these days, and I can't remember the last time any clients, lenders or other solicitors got sniffy about it. All perfectly safe - well, no more dangerous than believing what the councils tell you. You can get your searches within 24 hours.

greeneggsandham

Sounds good! Probably worth giving them a go then, their legal fees are the cheapest quote I've had so far, and the searches are at least 50% cheaper, so I stand to save at least £300 compared to the next cheapest quote. Might just make sure they're properly registered with whatever regulator and fully legit though. Then I just have to find a house and somebody to buy mine!

da_rule

greeneggsandham wrote: »

So I guess the thing to do is make sure the solicitor is properly accredited and maybe ask them if there's any kind of liability insurance? I had the agents round this afternoon to do the valuations, I asked one of them and he hadn't heard of these kinds of searches either. I have found out that when its just a transfer or remortgage or whatever, you can just forego the searches and have some kind of indemnity policy instead, but I'll be buying in an area I don't know particularly well, so would think the searches are essential even if not a requirement.

As there is no lender involved the yes you could just go down the route of no searches, but this would be risky. Also, the cost of indemnity insurance would probably outweigh the cost of the searches, as part of the application will include telling them about what searches you have undertaken. As there is no lender then I would go for personal searches as long as you are happy with the agent as they are often quicker and cheaper.

greeneggsandham

Looks like that's what I'm going to do, unless one of the other quotes I've requested comes back and is better. The agent is based quite far away, but with the rise of online only conveyancers, distance seems pretty irrelevant anyway.