Local Search Provider Gave Me An Incorrect Search Result

Michael_J

davidmcn wrote: »

I don't think this is the correct analysis. The solicitor instructs the searchers, as agent for the OP. The searchers are liable to the OP for any negligence in their report. The solicitors are unlikely to have themselves warranted anything, they'll have reported along the lines of "the search says..."

If the original solicitor doesn't sound interested in pursuing the matter then the OP should probably consult someone else, but I can't see there's cause for a complaint or claim against the solicitor.

Hmm.. interesting aproach..

But, let me ask you something guys. Ive just had a look into the letter received today from the solicitor which has attached the local search report. Doing this, Ive just realised that what Ive got back in January (when they sent me the search report) is completely different. I mean, now theyv REALLY sent me the search report, whereas back in Jan theyv sent me a resume of the report with their thoughts on it. Shouldnt have they sent me the WHOLE report (instead if their resume) back in Jan just as they did now?

And shouldt this report have my name on it? Ive just noticed now, that is not my name on it. Where is says "client details" is an LTD rather than my name

da_rule

The limited company will most likely be the company that requested the search. As you’re finding out, lots of solicitors employ companies to do the searches on their behalf. I’ve personally never seen the point for the basic searches, as a Con29 and LLC1 are very basic forms to complete.

Essentially you authorise the solicitor to get the search on your behalf, they then go about achieving that in what ever way they think is reasonable.

I don’t agree with the analysis that the solicitor is liable to you. The obtaining of searches, title documents etc are covered by disbursement costs rather than legal costs. Things that are covered by disbursements are not legal advice or services, they are things that anyone could do for you or you could do yourself, but you opt to commission the solicitor to do them for you, as an agent.

Whether or not the whole report should have been sent is tricky. Did you ask for the whole report? Some people want to see every page of every document, some people don’t. The solicitor gave you a summary of and advice on the report (although the report turned out to be incorrect, the advice given was given presumably in good faith with no knowledge of the mistake). You chose to continue based on this summary.

Do you have legal cover on your home insurance?

Also, do you have a mortgage? Have you informed them? Did the same solicitor also ask for the lender? If so, then the faulty report may also have caused them a loss and I’d bet that they have a larger legal budget than you to fight this. Also, depending on the size of the mortgage and therefore their interest in the property their ‘loss’ may be greater than yours.

Davesnave

Michael_J wrote: »

Pros and cons..


Ive invited 12 friends for a BBQ and just 3 made it by car. The others, had to park 100 yds away


But ur right, and "cheaper" is the magic word. Bearing in mind the new circumstances, I dont think the house is worth the money I paid for.

You saw the state of the road before you purchased, so what's changed? Even if the council owned it, you'd have no control over when or if it was re-surfaced.



Your friends will know to bring the 4x4 next time, or their hiking boots.

Chandler85

Having literally read through seraches provided to myself last night, a lot (not all) have insurance attached to them. I know the coal mining, the water one (althoguh thats full of caveats!) and i'm pretty sure the local search does as well.


The value of the insurance is naturally not the same as the house value, on mine they are mostly around £50k. I would assume, you are able to claim against them for an incorrect search, either for your share of maintaining the road if they said it was adopted, or maybe for the lower valuation of the house. Whether you want yor house revalued for less, I don't know.


I'd look through all your searches again, if they are insured they'll probably pay out easily if not then they might be a pain.

ACG

How long is the road from the main road to your house?
Could you sell the house and ask them to foot the bill for the difference in purchase and sale price (assuming it is less) and costs?
Could you ask them to pay for cost of having the road re-surfaced?

I think (but do not know) that you need to take this up with the solicitors. You paid them and they chose who to outsource it to. As suggested, write them a complaint letter and take it to their ombudsman if necessary.

AdrianC

Michael_J wrote: »

Ive bought a house back in March this year. On my first viewing, Ive told the estate agent that "no matter how cheap this house will be, no one will buy it because of the road". (the road looks like after the WW2 bombardment)
...
Reading this, I gave my solicitor the "green light" to proceed with the buying of this property.

<scratches head>
Even if the road was adopted, it was clear that maintenance was totally lacking, wasn't it?

The road is the exact same as you said "Nobody would buy here". Yet you did. Nothing changed.

Any insurance on the incorrect search result would almost certainly be limited to the effect on the value of the property. Is there any? Did your mortgage valuation take account of the road? If not, then the lender clearly don't think it important.

Have you spoken to your neighbours to find out what happens about maintenance? Have you considered actually sorting some of the potholes yourself...?

How bad is this road? Can you post a picture?

Michael_J

da_rule wrote: »

Whether or not the whole report should have been sent is tricky. Did you ask for the whole report?

Yes! I mean, Ive paid for the whole report, so Im expecting the whole report to be given to me.

da_rule wrote: »

Do you have legal cover on your home insurance?

Yea, in the sum of £50k

da_rule wrote: »

Also, do you have a mortgage? Have you informed them? Did the same solicitor also ask for the lender?

I do have a mortgage, but havnt inform them. It might sound stupid, but Im carefully planning my next step and telling the lender is not one of them atm. Im afraid they might cancel the whole thing. Can they? And yes, same solicitor did the work for them aswell, so theyv seen the same incorrect report and lent the money based on that one. Im thinking, had they known, the sum will have been lower (!?)

da_rule wrote: »

If so, then the faulty report may also have caused them a loss and I’d bet that they have a larger legal budget than you to fight this. Also, depending on the size of the mortgage and therefore their interest in the property their ‘loss’ may be greater than yours.

Im pretty sure theyv got a bigger budget, but what happens to me while they fight?

Michael_J

Davesnave wrote: »

You saw the state of the road before you purchased, so what's changed? Even if the council owned it, you'd have no control over when or if it was re-surfaced.

The value of the house has changed and the value of the sum lent from the lender. Consequently, the house has become harder to sell, imagining that a prospect buyer will get a proper report and will see the road is private. (or not public)


So, a lot has changed. Im not even bothered anymore about the state of the road, but more of the legal status and the consequences that brings with it.

Slithery

Michael_J wrote: »

I do have a mortgage, but havnt inform them. It might sound stupid, but Im carefully planning my next step and telling the lender is not one of them atm. Im afraid they might cancel the whole thing. Can they? And yes, same solicitor did the work for them aswell, so theyv seen the same incorrect report and lent the money based on that one. Im thinking, had they known, the sum will have been lower (!?)

I doubt very much that it would have affected their valuation in the slightest.

Davesnave

Michael_J wrote: »

The value of the house has changed and the value of the sum lent from the lender. Consequently, the house has become harder to sell, imagining that a prospect buyer will get a proper report and will see the road is private. (or not public)

I think loss of value would depend what sort of house it is and where it's located.


As I said before, where I used to live in Bath, property on privately owned, poorly surfaced roads, was sought-after, but we're talking £1m+ in most cases.


Here in Devon, it's variable. I live on a shared private road and I own another small one. There isn't any big deal about the larger road being private, as the public wouldn't want to park on it or use it as a short cut. In 10 years I've not paid a penny in maintenance. I suppose it makes us slightly more secure, but I don't think people would pay more or less because of it.