Wednesday, 11 January 2012

Increasing water pressure on Lenders

It looks as though Water Industry Property Information Network (WIPIN), the trade association representing the 10 Water and Sewerage companies of England and Wales who provide Drainage and Water Searches, are finally reaping the rewards for lobbying lenders on the issue of personal water and drainage searches.

Personal water and drainage searches exist in the marketplace as an alternative to the official Law Society approved CON29 Drainage and Water Enquiry, the standardised and underwritten product provided by the water companies. WIPIN warn of the potential for misunderstanding by conveyancers that personal searches are comparable substitutions for the CON29DW. The organisation posits that personal searches do not contain the same robust guarantees as the CON29DW, exposing the lender and homebuyer to unnecessary risk.

LENDERmonitor has recently notified hundreds of conveyancers that subscribe to their service of changes to Section 5.3.5 of the P2 of the CML Handbook for Yorkshire Bank Home Loans Ltd and Clydesdale Bank Plc.

The answer to the afore mentioned section has changed from :

Yes, provided the firm has adequate professional indemnity insurance. This will be treated as being the case if the firm is registered with the Council of Property search Organisations and the firm states that it complies with the Code of Practice for Compilers or Search retailers as the case may be.

To

For Local authority searches, yes, provided the firm has adequate professional indemnity insurance. This will be treated as being the case if the firm is registered with the Council of Property search Organisations and the firm states that it complies with the Code of Practice for Compilers or Search retailers as the case may be.

We do not accept personal searches in respect of other statutory searches or other utility undertakings.

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