2 (3) Pre-Contract Searches and Enquiries

Question 1

Searches relevant to every property

Answer 1

1. survey and personal inspection
2. local search
3. water and drainage search
4. pre-contract enquiries of the seller
5. environmental searches
6. flood search

Question 2

Difference between survey and valuation

Answer 2

1. valuation always asked for by lender to assess whether property is adequate security
2. doesn’t tell the buyer much about the structure of the property so a survey is always encourages

Question 3

What is the ‘local search’

Answer 3

1. Local search in LLC1 provides details of any financial charges or restrictions on land that have been imposed by public authorities under statute (eg. planning consents, tree preservation orders etc.)
2. Standard Enquiries on CON29: eveal information such as planning permissions, restrictions on development (ie. Article 4 direction), whether land is contaminated etc. Also raise questions of liability for road repair
3. Optional enquiries on CON29O which cover pollution notices and rights over common land

Question 4

Forms for water and drainage search

Answer 4

Forms used generally CON29DW (residential properties) and CommercialDW (commercial properties)

Question 5

Purpose of a water and drainage search

Answer 5

• Want to ascertain whether drains and sewers serving property are responsibility of statutory undertaker (’adopted’) as opposed to the owner (ie. if they are connected to a public water supply)
  
  • If property does not drain into public sewer, buyer will have to pay to maintain drains and sewers and bringing them up to adoption standard if water company chooses to adopt them

Question 6

Questions the seller MUST answer:

Answer 6

• whether seller has had disputes about property
• Any third parties occupying party
• compliance with any covenants contained within the title
• planning permissions
• issues about boundary maintenance
• for commercial properties: VAT status of transaction

Question 7

Environmental Search

Answer 7

Most common search is ‘desktop search’ carried out by specialist environmental search company by looking at plans of the area, info published by local authorities and EA

Question 8

If an environmental search shows contamination, what should the buyer do next?

Answer 8

If search shows contamination, buyer may want a physical survey of land to be carried out by specialist (take soil samples etc.)
- consider environmental insurance liability

Question 9

When is a flood search necessary

Answer 9

When property is close to a river or coast

Question 10

Flood proofing commercial v residential properties

Answer 10

insurance available for most residential properties from scheme ‘Flood Re’ but commercial properties not covered
- Commercial property flooding insurance very expensive or unavailable
- Some information available on Land Registry website / environmental agent

Question 11

When is a Chancel Repairs Search necessary

Answer 11

1. previous transfer for value occurred before 13 October 2013
2. Property may be in a church of England parish

Question 12

Coal Mining Search

Answer 12

Coal mining areas seen in Coal Authority’s map or by search of Coal Authority on CON29M form to confirm if property is in area where mining has taken place in the past or is likely to take place in the future, whether there are shafts, existence of underground workings etc. (or any claim for subsidence damage)
- May also wish to do an index map search to see if the title to the mines and minerals are registered

Question 13

Canal and River Trust Search

Answer 13

If property near river or canal, the buyer needs to be made aware of any liability for repairs to the maintenance of the waterways, banks and tow paths, and whether property has been affected by flooding

• Info from Canal & River Trust

Question 14

Commons Search

Answer 14

1. Optional enquiry 22 on CON29O form
2. Properties on green- field sites or adjoining an open space such as a village green may be affected by common rights, such as the right to pasture, that have been protected under the Commons Registration Act 1965. Councils in England and Wales are required to maintain a register of common land and a register of town and village greens.

Question 15

Railways Search: Purpose and Method

Answer 15

1. to determine whether there are any obligations to repair boundary features separating property from railway line and whether there are restrictions on carrying out building work next to the line
2. Can only be done by raising pre-contract enquiries with the seller
   - or undertaking specific searches for proposed railway undertakings (and enquiry 22 on CON29)

Question 16

What does the reply to enquiry 22 on the CON29 form reveal

Answer 16

Whether the property might be affected by a proposed rail scheme

Question 17

Highways Search: Method and Purpose

Answer 17

1. replies to enquiry 2 of CON29 will provide certain info about the roads adjoining the property (but verges and pavements not covered)
2. This information may not be detailed enough where, for example, the property is going to be redeveloped and there is a grass verge in third party private ownership between the road and the title boundary of the property forming a possible ‘ransom strip’. In such circumstances, the buyer’s solicitor can send a plan to the relevant highways authority, asking for the boundaries of the publicly maintainable highways (including verges) to be marked onto it.

Question 18

Unregistered land searches pre-contract

Answer 18

1. An Index Map Search (‘SIM’) and a Land Charges Department search against the seller and previous estate owners will be necessary in any purchase of unregistered land

Question 19

When is a company search necessary

Answer 19

When the seller is a company
- purpose is to confirm that the seller has authority to enter into the contract

Question 20

Bankruptcy search: Forms

Answer 20

1. K16 to land charges dept
2. Company search for a company