The Search Code

In September 2006, the Search Code was launched. The development of Search Code underpins CoPSO's firm belief that, in the interests of consumer protection, only those search organisations which adhere to prescribed standards should be able to provide searches in HIPs and as part of the home buying process. It also delivers on the industry's commitment to enhance standards across the sector.

As part of the preparatory work in establishing a baseline, CoPSO spoke extensively to the major stakeholders, including the Council of Licensed Conveyancers and the Council of Mortgage Lenders, to identify the key features they wanted to see included within an standards scheme. The response was clear:

• Search reports to incorporate all the required information  
• Good standards of practice when compiling search reports
• Comprehensive insurance cover
• Formal complaints handling procedures

Three-staged approach to standard setting

The formulation of search standards is currently adopting a three-pronged approach:

• First, there is the development of the Search Code
• Secondly, the Government has prescribed standards for searches within the HIPs 2007 regulations.
• Finally, the Government has announced that it intends to require local authorities, via industry guidance, to provide private search organisations with access to all the required information to complete a local search. 

Search Code

In line with other established standards schemes, the Search Code will incorporate the five core pillars of consumer protection:

• A Code establishing good practice within the industry.
• An independent registration and compliance function.
• Consumer complaints procedures which are low-cost, speedy, accessible and include an Independent Adjudicator. 
• Robust insurance cover.
• Competence requirements.

While CoPSO is the sponsor for the Search Code, all private search companies will be able to join the Code irrespective of size or trade association membership.  There are clear benefits in having one coordinated accreditation scheme for the industry as a whole.  With the home buying and selling process about to experience a period of rapid change, the Search Code will also evolve over time to include additional consumer protection features. 

The cornerstone of the scheme is the Code with key commitments covering areas such as:

• Training staff to undertake searches with thoroughness and diligence
• Provision of clear search reports, setting out the risks associated with a property
• Dealing promptly with queries raised on search reports
• Handling complaints speedily and fairly
• Maintenance of adequate and appropriate indemnity insurance cover.

The Search Code has been drafted with reference to the Office of Fair Trading’s Consumer Codes Approval Scheme (CCAS) and the longer-term objective will be to seek approval for the Code via this scheme. 

The independent Property Codes Compliance Board will oversee the registration and compliance functions under the Search Code, publishing regular reports on adherence monitoring.

Search Code update for lenders and conveyancers