Due Diligence 2

Question 1

What is outlined in s 57(1) of the Town and Country Planning Act 1990?

Answer 1

That planning permission is required for any development of land

Question 2

What are the two heads of development under s 55 TCPA 1990?

Answer 2

Operational development and material change of use

Question 3

What does operational development involves?

Answer 3

It involves building, engineering, mining, or other physical operations on, in, or under the land. Also known as BEMO

Question 4

What is considered material change of use?

Answer 4

The making of any material change in the use of any buildings or other land

Question 5

Which activities do not constitute ‘development’ under the TCPA 1990?

Answer 5

Internal building alterations that do not affect external appearance and changes within the same use class

Question 6

What are the use classes in England under the Town and Country Planning (Use Classes) Order 1987?

Answer 6

B2 - general industrial

B3 - storage and distribution

C - residential uses: hotels (C1), dwelling houses (C3), houses in multiple occupation (C4)

E - commercial, business and service: retail sale of goods, other than hot food (E(a)), sale of food and drink for consumption on premises (E(b)), financial and professional services (E(c)), uses which can be carried out in a residential area without detriment to its amenity (E(g))

F - local community and learning: learning and non-residential institutions (F1) and local community (e.g., shops selling essential goods in premises not exceeding 280m2 with no other such facility within 1,000m) (F2)

Question 7

What is the effect of planning permission once it is granted?

Answer 7

Planning permission runs with the land, benefiting future owners unless specific conditions are attached. Implementation deadlines are three years in England and five years in Wales

Question 8

What are the sui generis use classes?

Answer 8

Uses which could potentially have adverse effects on their locality and include: entertainment establishments, drinking establishments, and hot food takeaways

Question 9

Is planning permission required for changes of use to another use, or mix of uses, within the same use class?

Answer 9

No

Question 10

Is planning permission required for a change of use from one class to another?

Answer 10

Yes

Question 11

What are permitted development rights, and when might they be restricted?

Answer 11

Some developments are automatically allowed under permitted development rights. They can be restricted by an Article 4 Direction or require a Certificate of Lawfulness

Question 12

Which developments are typically granted automatic planning permission under the GDPO?

Answer 12

Developments within the curtilage of a dwelling house (e.g., extensions below a certain size) and minor operations (e.g., painting the exterior)

Question 13

What enforcement powers do LPAs have regarding planning breaches?

Answer 13

LPAs can issue enforcement notices, stop notices, and breach of condition notices. They can also apply for injunctions and Planning Enforcement Orders for concealed breaches

Question 14

Enforcement notice

Answer 14

Served to address breaches, specifying the remedial actions needed. It becomes effective after 28 days unless appealed

Question 15

Stop notice

Answer 15

Stops activities before the enforcement notice becomes effective. LPAs can also issue temporary stop notices for 28 days while further investigation occurs

Question 16

Breach of condition notice

Answer 16

Used for breaches of planning conditions attached to permissions. Cannot be appealed

Question 17

What is the time limit for enforcement actions?

Answer 17

Must occur within 10 years but the time limit is 4 years for building works or changing a building to a single dwelling before 25 April 2024. LPAs can apply for a Planning Enforcement Order to take action beyond these time limits if the breaches were concealed

Question 18

What do building regulations ensure, and when are they required?

Answer 18

Building regulations ensure the health, safety, and structural soundness of buildings. They are required for works like extensions and replacements, even if planning permission isn’t

Question 19

What initial check is performed to investigate title?

Answer 19

An Index Map search at the Land Registry using Form SIM, which requires a plan of the property

Question 20

What must a seller provide to prove ownership of unregistered land?

Answer 20

Title deeds, which the seller typically provides copies of to the buyer before the exchange of contracts

Question 21

What is the “verification of title”?

Answer 21

The process where the buyer’s solicitor verifies that the original title deeds match the copies provided before the exchange

Question 22

What does deducing title involve?

Answer 22

Examining physical title deeds documenting past transactions, such as conveyances, mortgages, and deeds of gift

Question 23

What is a good root of title?

Answer 23

The document from which the investigation of title begins, typically the most recent document meeting specific criteria

Question 24

Under Section 44 of the Law of Property Act (LPA) 1925, what are the requirements for a good root of title?

Answer 24

It must show ownership of the entire interest, provide a clear description, cast no doubt on the seller’s title, and be at least 15 years old

Question 25

What searches should be conducted for every property?

Answer 25

Survey and personal inspection

Local search

Water and drainage search

Pre-contract enquiries

Environmental search

Flood search

Question 26

What is included in a local search for a property?

Answer 26

A local search includes the LLC1 and CON29 forms, which reveal financial charges, restrictions, and planning information related to the property.

Optional enquiries via form CON290 can address matters like environmental and pollution notices

Question 27

What is the purpose of a survey and personal inspection in property transactions?

Answer 27

A survey assesses the property’s condition, while a personal inspection can reveal discrepancies in property plans

Question 28

What do mining searches reveal?

Answer 28

Mining searches reveal risks of subsidence and damage in areas with past mining activity, such as coal or tin

Question 29

Why is a flood search important for certain properties?

Answer 29

A flood search indicates potential flood risks and insurance availability, especially for properties near water or in flood-prone areas

Question 30

What information is gathered through the CON29 form?

Answer 30

The CON29 form reveals information about nearby roads, whether they are public highways maintained by the local authority or private roads