PLP Pre-Contract Searches and Enquiries Flashcards
What is the report on title?
The report in which the solicitor reports to its clients on its investigation of title, search results and replies to enquiries
- It is sent to the purchaser before exchange of contracts
- It is produced in the pre-exchange stage of the transaction
Caveat emptor
‘Buyer beware’
- Once contracts are exchanged, in general the buyer has no means of objecting to any issues that arise
- Buyer’s solicitor finds out as much about the property as possible prior to the buyer becoming contractually bound at the point of exchange
Professional conduct issues regarding the report on title
- It is addressed to the client and is generally confidential
- It should not be relied upon by anyone else
- It should set out the limitations of the solicitor’s liability
What is the solicitor’s liability for the report on title?
- it is not the solicitor’s fault if the report does not identify an issue that should have been revealed in a search, but was not
- no opinion on commerciality of the transaction
- unable to advise on value of property
- not advising on physical condition
What are the solicitor’s obligations and how does report on title fulfil them?
- to disclose all information material to matter of which they have knowledge
- give clients information in a way that they can understand
Who usually carries out pre-contract searches
The buyer’s solicitor
- standard searches = always necessary
- optional searches = depend on circumstances
What are standard searches (always necessary)?
- Local searches
- CON29 - Local Authority enquiries
- LLC1 - search of local land charges register - Drainage and water enquiries
- Desktop environmental search
- Chancel repair liability
What are the optional searches?
- CON29O
- Highways search
- Coal mining search
- Cheshire salt
- Tin, clay, limestone
- Phase I / Phase II survey
- Flood search
- Utility providers
- Railways
- Waterways
What provider do most solicitors use to raise searches?
Most solicitors use National Land Information Service
- solicitor orders any official searches from a channel provider
- the NLIS provides a single point of enquiry for making pre-contract searches
What is the local search?
Covers all matters relating to the property within the knowledge/records of local authority. Three parts usually ordered together
- Standard enquiries of local authority - Form CON29
- Optional enquiries - CON29O
- Local Land Charges Search - LLC1
What information is provided by CON29
- planning permissions, refusals and completion notices, including previous planning permissions
- building regulations
- roads and public rights of way (footpaths)
- environmental notices
What information is provided in CON29O
Optional enquiries:
- common land and town or village green
- road proposals by private bodies
- areas of outstanding natural beauty and national parks
- pipelines
- noise abatement zones
What information is provided in LLC1
12 parts to the land charges register:
- planning permissions that have been granted
- planning enforcement or stop notices
- Article 4 directions (disapply the GPDO)
- Tree preservation orders
- Smoke control orders
- Financial charges such as road-making charges
- debts against the property for work carried out
- Conservation areas
- listed building status
Drainage and water search
These questions are dealt with by relevant water service company for the area
- Form CON29DW for residential property
- CommercialDW for commercial property
Desktop environmental search
- always be considered
- owner may be liable for costs of cleaning up contaminated land, even if not responsible for contamination
- it is used to check for flooding risk
What are pre-contract enquiries
The seller usually provides replies to standard enquiries at the beginning of the transaction
- Commercial property: CPSE1
- Residential property: Form TA6 and Form TA10
What is seller’s responsibility when replying to pre-contract enquiries?
- relies on the seller being co-operative and truthful
- “not as far as the seller is aware” reply does not absolve the seller of responsibility, if the answer should have been yes
- the seller cannot deliberately mislead the buyer. This could give rise to a claim for misrepresentation
What is the Index Map Search (SIM)?
A search relating to the title/seller
Where property is:
- unregistered; or
- comprises more than one title (registered or unregistered); or
- the registered title refers to mineral rights
SIM shows extent of registered titles and unregistered land within the area. It does not show ownership
What is the MapSearch
Land Registry portal contains a free searchable map of registered titles
Central Land Charge Form (Form K15)
Where the property is unregistered, the central land charge search is carried out against the full names of the seller and previous owners referred to in the epitome of title
Bankruptcy search (K16)
- usually only carried out against the seller if the transaction is not at full market value
- it is carried out against a buyer taking a mortgage (where solicitor acts for buyer and lender)
Companies Search
If the seller is a company, then a company search should be made to check the company is in existence
CPSE1 what is the effect of seller giving the response ‘not so far as seller is aware’
Such response implies the seller has made all reasonable investigations before giving the response
What does an Energy Performance Certificate do?
- seller must commission an EPC before selling and make it available to prospective buyers
- remains valid for 10 years and is available on public register
- it contains recommendations on how to reduce energy use
- contains information on property’s current energy performance and costs
