Property professionals have demanded more clarity in new search regulations to prevent personal search companies using loopholes to ‘flout the law’ and produce ‘worthless’ searches.
From 6 April, new rules affecting the contents of home information packs come into force. From that date, a temporary provision allowing personal search companies to take out insurance where they have not been able to obtain information will end.
However, David Kempster, marketing manager at search provider Searchflow, said the regulations lack clarity and certainty, which could enable some companies to find loopholes.
Law Society President Paul Marsh shared Kempster’s fears: ‘Even after 6 April there’s a real chance that some searches will be worthless, as some personal search companies may be tempted to take a chance and not pay for information that is available.’
But Kate Nicholls, communications officer at the Property Codes Compliance Board, which regulates search companies and HIP providers, said the system has sufficient checks and balances to ensure compliance.
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