In a recent Q&A session, a question arose: is it worthwhile to consider purchasing another buyer's search pack? This situation came up when a first-time buyer found themselves in a scenario where the property they'd just had an offer accepted on was previously under offer by someone else, who subsequently withdrew. The suggestion was made to acquire the initial buyer's search pack to expedite the buying process.
We've delved into search packs before, outlining their components and significance. (For a quick refresher, you can read our previous post linked below.) Essentially, search packs encompass information gathered for solicitors to conduct their due diligence on the property you're eyeing.
While there's no official designation for a search pack, it generally comprises Local Authority Searches, Environmental Reports, and potentially other reports such as a Drainage Report. Although not legally obligatory, almost all mortgage lenders insist on a search pack for their assessment of the transaction. This makes obtaining one a wise move, unless you're making a cash purchase and are comfortable assuming associated risks without comprehensive property information.
Local Authority Searches, Environmental Reports, and Drainage and Water Reports are typically the minimum requirements for most mortgage lenders. However, additional reports like a Chancel Repair Liability Search or a Flood Risk Search may be advisable based on specific circumstances.
The cost of a search pack typically hovers around £300, depending on the included reports. Remember to account for this in your Property Transaction Budget, as payment is typically required upfront.
Now, let's address the question at hand: Should you entertain the idea of purchasing someone else's search pack? There are instances where a search pack may already be in place and offered to you as the potential buyer. For example, a previous buyer might have commissioned a search pack but decided not to proceed with the purchase, aiming to recoup the cost by selling it to the next buyer.
Alternatively, the sellers themselves might have initiated the search pack to expedite the process.
In the past, when Local Authority searches were more time-consuming, purchasing an existing search pack could significantly hasten the conveyancing process. However, with the advent of digital processes in most councils, this advantage has somewhat diminished.
Two critical considerations should guide your decision:
- Freshness of the Search Pack: Ensure the search pack is recent and wont be more than 90 days old at the time of your purchase completion. Mortgage lenders often stipulate this time-frame, with some allowing an extension of up to another 90 days because the searches offer a mere snapshot at a particular point in time and things could have changed since the report was written.
- Content of the Search Pack: Confirm that the included reports align with your mortgage lender's requirements. As previously mentioned, every lender asks for different reports. If the search pack is missing a necessary report for your lender, you may still have to get those searches done.
The pack you are considering buying may include extra searches which your lender doesn't need. You'd be paying for searches that may not be required, but in our opinion, that is never a bad thing. Having more information about your intended new home is always beneficial, even if its not a necessity.
In conclusion, it's prudent to consult your legal team before agreeing to buy a third-party search pack. While it may offer cost savings, especially if it's recent, the potential benefits must outweigh any risks of it becoming outdated. Ultimately, the decision to buy a second-hand search pack should align with your specific needs and circumstances.
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