2. Pre-contract searches Flashcards
Compulsory searches
- Local Land Charges Search (LLC1)
- CON 29
- CPSE
- Highways Search
- DES
- Commercial Water and Drainage search
- Chancel Repair Search
- SIM
Non-compulsory searches
- CON 29O
- Phase I + II Environmental Survey
- Company Search
- CON 29M
- Waterways Search
- Basic Utilities Searches
Further investigations B makes on his own behalf
ONE - STRUCTURAL SURVEY
- valuation report, or
- homebuyer’s survey, or
- full structural survey
TWO - PHYSICAL INSPECTION
- signs of occupation
- patent/obvious 3P interests
LLC1
Reveals:
- Planning related info
- PP
- Enforcement/stop notices
- conservation area?
- listed building status
IF BREACH NOT RECTIFIED - IT WILL BE B’S PROBLEM
CON 29
Reveals:
- public and private roads
- public footpath?
- adoption?
- PP applied for and refused
- BR
ENSURES B KNOWS PLANNING HISTORY AND GENERAL INFORMATION about the area
CPSE
Reveals:
- information known only to the seller
- info about unregistered 3P interests affecting the property?
- covenants breached?
BUYER AND AGENT WILL WANT TO KNOW WHAT MIGHT IMPACT B’S PLANS FOR THE PROPERTY
William Sindall v Cambridgeshire County
S should be mindful of replying ‘not so far as the seller is aware’
Gordon v Selico
S cannot deliberatly mislead the buyer (e.g. conceal physical defects or answer enquiries dishonestly)
Highways search
Reveals:
- boundary line between private land and public highway
- ensures land abuts highway
- land over which b has a right of way abuts the highway
B NEEDS TO BE ABLE TO ACCESS HIGHWAY TO USE PROPERTY PROPERLY
(if no abut - make sure appropiate rights of access are in palce)
DES
Reveals:
- contaminative use
- flooding and subsiding
OWNER CAN BE LIABLE FOR COST OF CLEANING UP CONTAMINATED LAND even if they are not responsible for contamination
COMMERCIAL WATER AND DRAINAGE SEARCH
Reveals:
- whether foul and surface water drains to public sewer
- whether proeprty is connected to mains water supply
B WILL KNOW WHETHER LAND IS connected TO MAINS WATER AND DRAINAGE
Chancel Repair Search
Reveals:
- liability to contribute to maintenance of a Church of England church
LIABILITY CAN BE VERY EXPENSIVE
SIM search
reveals:
- any other title numbers registered against the property
- ascertain owner of neighbouring land
- reveals if land is reg or unreg
- confirm boundaries of title
BE CLEAR ABOUT THE BOUNDARIES OF THE LAND IF LAND IS REGISTERED
CON 29O
reveals:
- Town or village greens
- common land
Ladenbau G&K v Crawley & de Reya
solicitor negligent if fail to make search of Common Land Register if location of property indicated it should have been done
Phase I and Phase II Environmental Survey
if DES raises concerns
- Phase I search - incl. desktop study and site visit
- Phase II - very expensive, incl. taking and testing soil and water samples
Company search
do this if S is a company
- solvency
- able to sell?
- fixed and floating charges over company assets (imp. if unreg land)
- current name
CHECK COMPANY IS ACTUALLY AUTHORISED TO SELL
Con 29M
Reveals:
- affected by subsidence?
- where mining has taken place?
- compensation paid?
CAN BE EXPENSIVE TO DEAL WITH LATER
waterways search
reveals:
- liability for maintenance of river bank/canal
- rights of way
- fishing rights
If Canal & river trust responsible - B is not
If B responsible - he is riparian owner (responsible for watercourse forming boundary of property or running through their property - keep river free from obstructions impeding normal water flow)
basic utilities search
dependent on client instructions - reveals if connected to serviecs and identity of providers
GIVES PRACTICAL INFO TO B - set up accounts for utilities
Structural survey - whose responsibile
B’s solicitor - check B has done this
- B instructs surveyor
- B considers findings and decides how to proceed
- no remedy if property inadequate
Structural survey - types
ONE - valuation report
TWO - homebuyer’s survey
THREE- full structural survey
valuation report
- basic
- made by valuer on behalf of lender
- won’t normally consider structure/condition of property
- no duty to B
- even if instructed by B, report offers no guarantee as to adequacy of the property
homebuyer’s survey
- undertaken in residential property transaction
- more detailed than valuation report
- lender arranges valuer to do this on payment of additional fee by B
- surveyor incorporates valuation and indication of condition of property and costs of repairing defects