Conveyancing solicitors ‘failing’ clients over survey advice
Thursday 18 February 2010 by Catherine Baksi
Conveyancing solicitors are running the risk of potential negligence actions by failing to advise buyers to obtain a survey before purchasing a property, an expert has claimed.
Mike Ockenden, chief executive of the Federation of Property Information Providers, said: ‘The Council of Mortgage Lenders’ handbook recommends that advisers should point out to purchasers the limits of the valuation report, and advise them to obtain a more detailed report on the condition of the property.’
By failing to do this, he said, solicitors were putting themselves at risk of potential liability.
Ockenden said: ‘Many people wrongly believe the mortgage valuation survey is a report on the condition of the property.’
Only around 18% of buyers get proper surveys and, according to research by consumer watchdog Which? in 2008, one quarter of buyers find problems with their homes after moving in. Which? found purchasers spent an average of £2,500 getting problems put right, with one in 10 spending more than £10,000.
Richard Barnett, chairman of the Law Society’s conveyancing and land law committee, said solicitors should advise buyers to have a survey undertaken even though most will not take the suggestion up.
However, he said he was not aware of any evidence that solicitors were failing to advise buyers in this respect.
Comments
Conveyancers ‘failing’ clients over survey advice - Nonsense!
Nonsense.
Recommends....recommends.....recommends
Lender valuations...are these new? No they have always been with us. Always, so what is new!?
LAW SOCIETY:
1. resigned all your negotiators when dealing with CML
2. recruit top London law firm negotiators
3. then have CML put it in bold black writing on their mortgage offers that Customers MUST NOT rely on the Lenders valuation.
Good grief.
Failing advice
Let's Bill and Ben it shall we - who does what:
Surveyor - whether the building is safe and what repairs have been/are needed, and what consents the lawyers should look for
Lawyer -making sure the seller contracts properly to convey the house to you, and a vetting of whatever papers are handed over as proof they can.
Next you'll be blaming your lawyer because the removers broke your crockery!
Lawyers are the most affordable party to a deal (compared to surveyor and Agent) yet they some how get blamed for all weird and wonderful
If you buy a car, you get the AA or a local garage to check it out, or you get a warranty from the garage. If you buy a house.....er.....do I do a survey?
Surveys
In the last 10 years, we have purchased 3 properties, due to my husbands work and having to move around the country and yet we have never been advised by anyone to get an independent survey and in one instance definately believed that the valuation report was a survey. Fortunately we have been very lucky and have not had any problems with our properties.
I used Fridays Property
I used Fridays Property Lawyers for my conveyancing. Perhaps I was a bit nieve but as a first time buyer I thought the lender did the survey. I received the following advice form the outset from Fridays :
"....We always recommend you have a comprehensive structural survey carried out by an independent qualified surveyor and obtain the results in writing. Ultimately, this is your risk and your choice. If you are trying to keep costs down, you may choose a less costly option such as a Homebuyers Valuation Report which is set out in standard format and acts as a half way house between a full structural survey on which you will be able to rely (subject to the surveyor’s terms and conditions) and a mortgage valuation report carried out on behalf of your mortgage lender- in most cases you have no legal recourse to the contents of this valuation. May We draw your attention to any comments made by the surveyor or valuer in relation to issues affecting the property. These would include possible works of maintenance and repair that may be required now or in the future. Prior to exchanging contracts, thereby committing yourself to any purchase, you should always investigate the cost and implication of instating any such works that may be required...."