Risk management

Scrutinise searchesSearches are an integral part of conveyancing.

But claims continue to arise because of the lack of a systematic approach.

As with most risk management procedures, developing such a system is simple.

An effective procedure prevents simple mistakes, and it is simple mistakes that lead to claims.Do all appropriate searchesThe simplest mistake is to overlook submitting a search in the first place.

Annex a case planner to the file to highlight the need for the search, the date it was submitted, and the date received.

Some searches must always be undertaken.

But should additional searches be submitted? The answer may depend on various factors, such as geographical location of the property or the specific instructions of the client.

It is for the firm to decide on the guidelines to be followed.

However, it is helpful to know all the various types of searches, and where appropriate link them to a particular location.

Keep an up-to-date register of where the search should be sent, whether a plan is required, and how much it costs.

This will require time spent on research.

There is a useful section on less common searches in the Conveyancing Handbook 2001 (Law Society Publishing).Read the resultsMake sure you read the result of the search carefully in every case.

This means more than a perfunctory glance, even if you believe you have a detailed knowledge of the area.

This is how adverse entries are overlooked, for example a road-widening scheme or a planning entry which may affect the property or its value.Often, when the problem comes to light the conveyancer simply cannot believe that he missed the entry.

So go through the question and the answer.

When you have done so, mark the question off if no further action is required.

If some further step is required, make a note of what needs to be done.

For example, some local authorities do not supply adequate information about sewerage.

In such cases it may be necessary to raise further enquiries of the relevant water authority.Advise the clientThis does not mean just the purchaser client, but the lender client as well if appropriate.

Do not make decisions on the client's behalf.

All relevant information must be disclosed for the client to make an informed decision about the steps they wish to take.

These could include ignoring the matter, instructing you to carry out further enquiries, or withdrawing from the transaction.

This could help prevent letters that clients all too often send to their solicitors after completion, saying 'If you had made me aware of the situation I would not have proceeded with the purchase.'l This column was prepared by the St.

Paul risk management team.