Claim Case Study: Local Authority Search Retrospective charges Background The insured was purchasing a plot of land for development and, due to the delay in receiving a full Local Authority Search, the insured obtained a Local Search from a personal search company to expedite completion of the conveyancing transaction. However, this did not reveal several outstanding financial charges registered against the property on the Local Land Charges register. These related to the Council ‘removing conditions of immediate danger’, and placing of ‘indicators and barriers to warn of danger.’
Challenge Fortunately for the insured, they had obtained a Regulated Local Search. All Regulated Searches are required to adhere to the Search Code, which requires suppliers to provide additional consumer protection to cover errors and omissions in the source data held at the Local Authority. The Local Search in this case benefited from an insurance policy from First Title Insurance, which provided cover for loss arising from any adverse entry that should have been revealed by a Local Authority Search carried out directly with the Local Authority (had one been obtained on the policy date) but had not been made available to the personal search company at the time of their visit.
The Council confirmed that the outstanding financial charges would have been revealed had the Local Authority Search been obtained on the policy date but, unfortunately, had not been made available to the personal search company at the time of their visit.
Solution First Title Insurance made payment to the insured for the amounts outstanding under the Local Land Charges, who then made payment to the Local Authority so that the charges could be removed from the Local Land Charges Register. A swift resolution of this matter was achieved with the claim being settled within ten days of receipt.
Client Testimonial “I thought the process was dealt with really well. It is always a pleasure when the purpose of the insurance pays off for our client. I didn’t need reassuring with our relationship with First Title but this reinforces how good it is.” Director, Technical Real Estate, DWF LLP
Call: +44 (0)207 160 8100 Email: info@firsttitle.co.uk Visit: www.firsttitle.co.uk First Title Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. First Title Insurance plc is registered in England under company number 01112603. Registered office: First Title Insurance plc, ECA Court, 24-26 South Park, Sevenoaks, Kent TN13 1DU.
Leading Title Insurance 1096-0219