BUYER - PRE-CONTRACT SEARCHES & ENQUIRIES Flashcards
WHAT STAGE OF THE LSCP IS USED IN THIS STAGE OF THE TRANSACTION?
Stage B (pre-exchange)
WHAT ARE THE EIGHT PRE-CONTRACT SEARCHES?
- Local Search
- Drainage and Water Search
- Coal Mining Search
- Flood Searches
- Environmental Search
- Chancel Repair Liability Search
- Search of the Index Map
- Physical Inspection
WHAT IS THE LOCAL SEARCH?
The local search is the main pre-contract search and is made in two parts. The forms are submitted to the local authority for the property being purchased, together with a fee.
WHAT IS THE FIRST PART OF A LOCAL SEARCH?
Use form LLC1
Local Authorities are required to keep a register of local land charges for their area. The register is in 12 parts and form LLC1 may request a search of the full register.
WHAT IS THE SECOND PART OF A LOCAL SEARCH?
Use form CON29
There are two forms which are sent in duplicate with form LLC1 to the relevant local authority
WHAT IS CONTAINED IN FORM CON29 IN A LOCAL SEARCH?
Standard enquiries and are relevant to every transaction
WHAT IS CONTAINED IN FORM CON29O IN A LOCAL SEARCH?
Optional enquiries
WHAT IS THE DRAINAGE AND WATER SEARCH?
Use form CON29DW
This search must be completed in every transaction.
Form CON29DW should be submitted (with a location plan) to the appropriate water service company for the area of the property.
WHAT MATTERS ARE COVERED BY THE DRAINAGE AND WATER SEARCH?
- Whether the property is connected to a public sewer
- Whether the property is connected to surface water
drainage - Whether there is a public sewer within a defined
distance of the property - Whether the property is connected to mains water
supply - Whether there is a water meter
- Whether the water is hard or soft
- Who bills the property for sewage and water services
WHAT IS THE COAL MINING SEARCH?
Use form CON29M
This search is only required where the property is in an affected area.
Form CON29M can be sent to the Coal Authority or reports can be ordered from the Coal Authority by telephone or via its online reports service.
WHAT WILL THE COAL MINING SEARCH REVEAL?
- Whether there are any past, current or future underground or surface coal mining activities affecting the property
- Whether there are any mine shafts
- Whether there is any coal mining subsidence
- Whether there have been any claims for subsidence and mine gas emissions
WHAT OTHER TYPES OF MINING CAN AFFECT A PROPERTY?
Tin mining - in Cornwall, Devon and Somerset
WHAT IS THE CHESHIRE SALT SEARCH?
This search will reveal whether brine extraction work will affect the property
WHAT IS A FLOOD SEARCH?
This search is carried out where relevant to identify any potential issues
WHAT IS AN ENVIRONMENTAL SEARCH?
It will be necessary to undertake an environmental search to check for any environmental hazards that may affect the property
WHAT MATTERS WILL THE ENVIRONMENTAL SEARCH COVER?
- Factories discharging hazardous substances
- Whether the land is contaminated from past industrial use
- Fracking sites
- Solar or wind farms
- Railway projects
WHAT IS A CHANCEL LIABILITY REPAIR SEARCH?
Certain properties in certain risk parishes can be under a legal obligation to pay towards repairs to the chancel of a parish church. A property could be liable even if it is located some distance away from the church and as it is the land that is liable rather than the property so this could affect both old and new properties. Owing to the risk of financial liability, many solicitors carried out a CRL search to see whether the property was at risk.
WHAT IS THE LEADING CASE LAW IN RESPECT OF THE CHANCEL LIABILITY REPAIR SEARCH?
Aston Cantlow and Wilmcote with Billesley Parochial Church Council v Wallbank [2003]
WHEN DO FIRMS MAKE A CHANCEL LIABILITY REPAIR SEARCH?
If it is the first sale for value after 13 October 2013 (this is when CRL ceased to be an overriding interest) due to the danger that the church authorities might apply to register a notice during the transaction meaning the buyer would be subject to the CRL protected by the notice.
WHEN IS A SEARCH OF THE INDEX MAP MADE?
To check whether the land is registered
WHY SHOULD A BUYER PHYSICALLY INSPECT THE PROPERTY?
To report any obvious problems such as:
- Any physical defects
- Whether there appears to be any other occupiers
- Whether there appear to be any problems with the boundaries
- That any fixtures and fittings the buyer has agreed to buy are at the property
WHAT ARE PRE-CONTRACT ENQUIRIES?
Relate to aspects of the property that the seller is not bound by law to disclose but might affect the buyer’s decision to buy the property
WHAT ARE THE FOUR AVENUES IN RESPECT OF PRE-CONTRACT ENQUIRIES?
- Evaluating information already provided
- Evaluating information from the pre-contract package
- Where the information has not yet been provided, own enquiries must be made
- Property Information Form
WHAT IS THE PROPERTY INFORMATION FORM?
Form TA6 which is supplemented by the Fittings and Contents form (form TA10)
