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The Home Information Pack (No. 2) Regulations 2007

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Access to local authority records

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4.  The results of the search included in the search report required by regulation 8(k) (local enquiries) may fail to answer the enquiries set out in Part 2 of Schedule 7, in the following circumstances—

(a)the first point of marketing falls before 1st April 2008 (except where a further first point of marketing arises under regulation 3(4) or Part 5);

(b)a record from which the answer or result could be deduced is held by a local authority;

(c)that local authority has a policy of not allowing other persons to inspect such records;

(d)a local authority is not requested to provide the search report;

(e)any enquiries not answered are the subject of a contract of insurance against the liabilities that if they had been answered, they would have affected—

(i)an actual buyer’s decision to buy the property; or

(ii)the price an actual or potential buyer would be prepared to pay for it,

and result in financial loss;

(f)such a contract of insurance is effected by, and to be carried out by persons so authorised for the purposes of the Financial Services and Markets Act 2000;

(g)any liability for financial loss arising under paragraph (e) will be met by financial compensation to be paid by a person (other than the persons described in paragraph 6(a)(i) to (iii)) who is—

(i)a party to the contract of insurance; or

(ii)another person involved in the sale of the property; and

(h)such financial compensation is paid by a person mentioned in sub-paragraph (f) if any person mentioned in sub-paragraph (g) fails to pay it (or no longer exists and has no successor); and

(i)the search report—

(i)contains a description of the terms and effect of the insurance described in this paragraph; and

(ii)identifies which enquiries have not been answered and in respect of which the insurance has been obtained.

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