12.5 - Pre Contract Searches And Enquiries

Question 1

Pre contract searches and enquiries

Answer 1

Key part of the information gathering process carried out by the buyers solicitor which will enable the buyer to decide whether or not they want to proceed with the purchase of the property

Question 2

Survey of the property is carried out by

Answer 2

Qualified surveyor they check for any physical defects on the land which will impact the value of the property

Question 3

Main types of survey carried out by qualified surveyor

Answer 3

Mortgage valuation report
Homebuyers valuation and survey report
Full structural survey

Question 4

Principle of caveat emptor

Answer 4

Let the buyer beware - buyer should carry out their own inspection of physical defects

Question 5

Mortgage valuation report

Answer 5

Paid for by the buyer when they are obtaining a mortgage
Purpose is to establish whether the property represents good security for the lenders loan
Only the lender can rely on it not the buyer

Question 6

Homebuyers valuation and survey report

Answer 6

Paid for by the buyer and which the buyer can rely on
Contains more detail than the mortgage valuation report
Check whether the property represents a good security for the loan

Question 7

Local search

Answer 7

Carried out by buyers solicitor
Check stuff at a local level which might impact the property
Just information about roads, planning and building etc on the property itself NOT the adjoining land

Question 8

Drainage search

Answer 8

Buyers solicitor carries out the search
Search of utility company
Reveals whether property is connected to public water supply and public foul drainage system

Question 9

Environmental search

Answer 9

Provides information on environmental factors such as contaminated land, flooding and soil type.

Question 10

Bankruptcy search

Answer 10

Carried out to check whether there are any bankruptcy enquires against the buyer that would prevent the mortgagor from proceeding
Carried out on behalf of the lender when obtaining a mortgage

Question 11

Local authority search - optional enquires

Answer 11

Additional questions to be searched
Pollution, noise and pipelines

Question 12

Commons registration search

Answer 12

Optional enquiry
Reveals if the property is on any common land or a village green which gives the residents the right to use the land in question

Question 13

Chancel search

Answer 13

Reveals if the property is at risk of making a financial obligation towards the local church

Question 14

Company search

Answer 14

Carried out if the seller is a limited company to establish that the company has not been liquidated and is entitled to deal with land

Question 15

Index map search

Answer 15

Carried out if the title to property being purchased is unregistered
Causation against first registration - protection for interests affecting unregistered land

Question 16

K15 search

Answer 16

Full land charges search

Question 17

Full land charges search

Answer 17

Checks for any land charges that might impact the property

Question 18

CPSE

Answer 18

Commercial property equivalent to the Property Information Form
Covers issues such as boundaries, physical condition of the property etc
More comprehensive than the property information form

Question 19

If the seller’s title is in mortgage

Answer 19

Necessary to obtain the consent of the lender to the proposed sale of part of the land

Question 20

DSL

Answer 20

Used to release the whole of the land in a title from a mortgage

Question 21

DS3

Answer 21

Releases the land from a charge from the lender

Question 22

SCPC used or standard conditions

Answer 22

In a commercial contract

Question 23

If the seller is transferring all of their land in ownership to the buyer they will use a

Answer 23

TR1

Question 24

If the seller is selling only part of the land in their ownership they will use a transfer of part which is a

Answer 24

TP1
Could also contain covenants

Question 25

With a new build property the seller must agree to hand over

Answer 25

A building regulations completion certificate on or before the completion date

Question 26

Bonds and new developments

Answer 26

Goes to the local authority or utility company
Used to secure the road services to an appropriate standard if the developer goes out of business

Question 27

New build warranty

Answer 27

Provides protection to a buyer of a new build property
If the developer fails to build the property to an appropriate standard, the warranty provider will step in during the first 10 years of construction and put the structural defects right

Question 28

Most new build warranty protection schemes have

Answer 28

Deposit protection too
As the deposit is usually held as an agent (paid straight to the seller)
Ensures buyer can recover their deposit

Question 29

Most common new build warranty is provided by

Answer 29

National House Building Council

Question 30

Raising enquiries

Answer 30

Concerns with the search results and contract packs