Pre-contract searches and enquiries

Question 1

When is a report on title sent to a purchaser?

(a) 
After exchange of contracts.

(b) 
After completion.

(c) 
Upon being instructed by the client

(d) Before exchange of contracts

Answer 1

(d) Before exchange of contracts

It is a report setting out all the matters relating to a property that the purchaser must review and make their mind up whether to buy the property. A purchaser is committed to purchase the property at exchange of contracts therefore the report must be sent out in good time before this point. It is unlikely that as soon as a solicitor has been instructed by the client that they would have had the search results and carried out the title investigation. It usually takes a few weeks for a solicitor to carry out the title investigation and then compile the report.

Question 2

A solicitor is preparing a report on title. Which of the following approaches will best help the solicitor meet its conduct requirements?

(a) 
Giving the client only that information which would put the client off continuing with the purchase in a way that the client can understand.

(b) 
Giving the client all material information of which the solicitor has knowledge in precise language, and it is for the client to question anything that they do not understand.

(c) 
Giving the client all material information of which the solicitor has knowledge in a way that the client can understand.

(d) 
Giving the client only that information which would put the client off continuing with the purchase, and it is for the client to question anything that they do not understand.

Answer 2

(c) 
Giving the client all material information of which the solicitor has knowledge in a way that the client can understand.


Question 3

Which ONE of the following matters is typically reported on in a report on title?

(a) Details of the conveyancer’s terms and conditions of business.

(b) 
Details of the inspection of the property by the conveyancer.

(c) 
An opinion on the value of the property.

(d) 
Details of any rights benefiting the property.

Answer 3

(d) 
Details of any rights benefiting the property.

The rights benefitting the property will be evident in the conveyancer’s title investigation of the property. The conveyancer would not have inspected the property and indeed it would make it clear as a limitation in the report that such an inspection had not taken place. The conveyancer’s terms and conditions of business would have been sent to the client upon being instructed. The report will not advise on the value of the property and whether the property is being purchased for the right price. This is something a surveyor would be able to advise on, not a solicitor.

Question 4

What is a report on title and what will it identify?

Answer 4

It is a report in which solicitor reports to client on investigation of title, search results and replies to enquiries; it can take form of letter or standalone document.

It will identify:
1. Material facts in respect of property
2. Issues and their implications
3. Solutions available

Question 5

True or false: a solicitor has unlimited liability in respect of the report on title.

Answer 5

False - the report on title should set out the solicitor’s liability. The report is based on the title documents, search results, planning documents and enquiries; it is not the solicitor’s fault if the report did not identify an issue that should have been revealed in search but wasn’t.

Question 6

From where would you order any official searches from?

(a) 
The Local Authority in which the property is located

(b) 
National Land Information Service

(c) 
The Land Registry

(d) 
Companies House

(e) 
A channel provider, such as SearchFlow

Answer 6

(e) 
A channel provider, such as SearchFlow

The searches themselves are provided by channel providers (who offer an ‘ordering service’), such as SearchFlow, Thames Water Property Searches and GlobalX. Requesting searches via such channel providers is a typical trainee / paralegal job

Question 7

Which of the following searches does NOT form part of the ‘local search’?

(a) 
Additional Local Authority Enquiries (CON 29O)

(b) 
Local Land Charges Search (LLC1) 

(c) 
Enquiries of the Local Authority (CON 29)

(d) 
Highways search

Answer 7

(d) 
Highways search

This is a search with the Highways Authority, rather than the Local Authority. The Local Search are enquiries with the Local Authority of the property.

Question 8

Which of the following searches would you always order in a transaction?

(a) 
Drainage and Water
(b) 
Con29O (additional local search enquiries)

(c) 
Waterways search

(d) 
Company search

(e) 
CON 29M (Coal Mining and Brine Search)

Answer 8

(a) 
Drainage and Water

This search will always be carried out. The search checks matters such as whether foul and surface water from the property drain to a public sewer, and whether the property is connected to a mains water supply. 


Question 9

Where would you expect to find out whether a public footpath crosses a property?

(a) 
Search of the Index Map Result (SIMR).

(b) 
The Property Register of the Official Copy.

(c) 
The Local Authority Search Result (CON29).
(d) 
The Local Land Charges Search Result (LLC1).

Answer 9

(c) 
The Local Authority Search Result (CON29).

There is a question to the local authority at enquiry 2.2 asking if there are any public rights of way (which would include footpaths) that abut or cross the property.
The Local Land Charges Search Result does not record details of footpaths, instead it records charges such as general and specific financial charges, planning charges, listed buildings charges. The Property Register of the Official Copy reveals rights benefitting the property such as private rights of way, not public footpaths. The Search of the Index Map Result reveals whether the area searched is registered or unregistered land, it does not provide any information on an any specific rights of way and indeed the Land Registry does not record public footpaths on its registers.

Question 10

Your client is buying a house that has just had a loft conversion. Your client has asked you whether you can tell from the pre-contract papers whether the seller obtained any building regulation approval relating to the loft conversion. Where would you expect to find the answer?

(a) 
The Local Land Charges Search Result (LLC1).

(b) 
The Local Authority Search Result (CON29).

(c) 
The Local Authority Search Optional Enquiries (CON29O)

Answer 10

(b) 
The Local Authority Search Result (CON29).


Question 11

Which of the following statements is correct in relation to the Local Land Charges Search (LLC1)?

(a) 
The LLC1 result will reveal whether the property registered is common land or town or village green under the Commons Registration Act 1965 or the Commons Act 2006.

(b) The LLC1 is an official search of the Register maintained by the Land Registry.

(c) 
The LLC1 will reveal details of any application for planning permission that has been refused.

(d) 
The LLC1 reveals planning permissions and restrictions against permitted development (known as an Article 4 Direction).
(e) 
In every transaction the LLC1 is submitted to the local authority together with the CON29O enquiries.


Answer 11

(d) 
The LLC1 reveals planning permissions and restrictions against permitted development (known as an Article 4 Direction).

The LLC1 is always carried out and the result reveals among other matters planning permissions granted (not refused) and restrictions against permitted development (an Article 4 Direction). In every transaction the LLC1 is submitted to the local authority (usually via an online search platform such as Searchflow) together with the CON29. The solicitor may raise additional enquiries on CON29O but this is not required in every transaction. It is the CON29O that will reveal whether a property is registered as common land or town or village green, not the LLC1.


Question 12

A man is the sole owner of a freehold property. The property is currently let out as office premises. The man plans to carry out internal works to the property so that it can be let out as a single private dwelling house when the current occupant’s lease comes to an end.
Will the man require planning permission for his plans for the property?

(a) 
Yes, he will require planning permission for both the internal works and the change of use because they are developments which are not permitted.

(b) 
Yes, although he will not require planning permission for the internal works, he will require planning permission for the change of use.
(c) 
No, the internal works do not constitute development and nor does the change of use.

(d) 
No, the internal works do not constitute development and nor does the change of use because it is a change to a single private dwelling house.

(e) No, the internal works do not constitute development and nor does the change of use because the change is within the same use class.

Answer 12

(b) 
Yes, although he will not require planning permission for the internal works, he will require planning permission for the change of use.

s. 55(2)(a) TCPA 1990 states that internal works do not constitute development. Classes E(g) (offices) and C3 (dwelling house) of TCP(UC)O 1987 were the relevant use classes. Changing from one use class to another is a ‘development’ because it is a material change in use’ unless the change is one that is permitted under Part 3, Schedule 2 GPDO 2015. Under the GPDO this is not a change of use that is ‘permitted development’. It would have been a change from B1 to C3 under the pre-1 September TCP(UC)O 1987 but was also not permitted under the GPDO 2015 so does not fall within the transitional provisions.


Question 13

What is the effect of a property being in a conservation area?

(a) 
If a planning permission is granted the development must then be commenced within three months of the planning permission. The LPA may have made an Article 4 Direction.

(b) 
The LPA will make an Article 4 Direction and constructing new buildings is prohibited.

(c) 
The LPA is under a duty to make an Article 4 Direction in respect of all property in a conservation area.

(d) 
Any planning permission granted for development is likely to be subject to more onerous conditions than if the property was outside of the conservation area and the Local Planning Authority (LPA) may have made an Article 4 Direction.
(e) 
It will be impossible to obtain planning permission for any proposed development of the property and the LPA may have made an Article 4 Direction.

Answer 13

(d) 
Any planning permission granted for development is likely to be subject to more onerous conditions than if the property was outside of the conservation area and the Local Planning Authority (LPA) may have made an Article 4 Direction.

Areas are designated conversation areas because they have a special character or appearance and hence it is likely that any planning conditions (e.g. bricks to be in keeping with the surrounding buildings) will be more onerous than in areas outside of such an area. Article 4 Directions are also very common in conservation areas.


Question 14

A company is the owner of a warehouse. The property is currently vacant. The company plans to carry out substantial internal works involving removing internal structural walls so that it can be let out as a restaurant.
What planning consents will the company require?

(a) 
Planning permission for the internal works, planning permission for the material change of use and building regulation consent for the internal works.

(b) 
Planning permission for the change of use.

(c) 
Planning permission and building regulation consent for the internal works.

(d) Building regulation consent for the internal works.

(e) 
Planning permission for the material change of use and building regulation consent for the internal works.

Answer 14

(e) 
Planning permission for the material change of use and building regulation consent for the internal works.

The building works are internal works and therefore do not constitute development (s.55(2) TCPA 1990). Planning permission for the internal works is not required. The change of use of the property from a warehouse (Class B8) to a restaurant (Class E(b)) is a ‘material change of use’ which constitutes ‘development’ and hence planning permission is required for the change of use. This change does not fall within the GPDO 2015, nor would it fall within the transitional provisions (being a change in the pre-1 September TCP(UC)O 1987 from B8 to A3). As internal works are taking place, building regulation consent is required.

Question 15

A house was built three years ago and the owner is now selling it to your client.
Which of the following statements best describes the legislation regarding planning control?

(a) 
If planning permission had been needed the time limit for the local authority to bring enforcement action for the seller not obtaining planning permission is 10 years from the date of substantial completion

(b) 
If planning permission had been needed, the time limit for the local authority to bring enforcement action for the seller not obtaining planning permission is 4 years from the date of substantial completion.

(c) 
The seller need not have obtained building regulations approval for the building of the house.

(d) 
If building regulations approval had been needed, the local authority must serve an enforcement notice for the seller having not obtained it within six months from the date of completion of the building work that is in breach.

(e) 
If building regulations approval had been needed, the time limit for the local authority to apply for an injunction for the seller having not obtained it is 10 years from the date of completion of the building work that is in breach.

Answer 15

(b) 
If planning permission had been needed, the time limit for the local authority to bring enforcement action for the seller not obtaining planning permission is 4 years from the date of substantial completion.


Question 16

Your client is buying a house that had a substantial kitchen extension constructed recently. The seller has confirmed that buildings regulations consent has not been obtained. Which one of the following statements is good advice to give to your client in the circumstances?

(a) 
Advise the buyer to obtain a Regularisation Certificate before exchange of contracts.

(b) Request that the buyer inspects the kitchen and to report back to you if they think the works present any problems.

(c) 
Advise the buyer to obtain indemnity insurance upon completion.

(d) 
Request that the seller obtains a Regularisation Certificate before completion.
(e) 
Building Regulations consent is not required because extending a house is permitted development under GPDO 2015 provided the seller complied with the criteria laid out therein

Answer 16

(d) 
Request that the seller obtains a Regularisation Certificate before completion.

Building Regulations is concerned with how the works take place – so building materials, insulation, health and safety, fire escapes are all matters that building regulations covers. All works whether internal or external require Building Regulations. The seller should be asked to rectify the situation and obtaining a Regularisation Certificate is retrospective consent by the local planning authority that they are happy with the construction work. If you did not obtain a Regularisation Certificate, the local planning authority could apply for an injunction at any time requiring your client to alter or remove works. This would not be fair since it is the seller who should have obtained the consent and who should pay for any works that need to be carried out in order to obtain the correct approval.


Question 17

How can a local authority enforce a planning permission?

Answer 17

1. Enforcement notice (28 days)
2. Stop notice
3. Breach of condition
4. Injunction

Question 18

How can a local authority enforce a building regulation?

Answer 18

1. Prosecution (6 months after discovering breach)
2. Enforcement notice (28 days)
3. Injunction

Question 19

Against whom is enforcement of a planning permission?

Answer 19

The current land owner and not the person who caused the breach, so generally the buyer’s solicitor must check for breaches.

Question 20

Which one of the following statements is the most accurate description of a Planning Enforcement Notice?

(a) 
It invites the recipient to respond about how any breach may be satisfactorily remedied.

(b) 
It flushes out information about potential planning breaches.

(c) 
It cannot exist independently of a Planning Contravention Notice.

(d) 
Non-compliance could result in a fine and the local authority carrying out the necessary work at the land owner’s expense.

(e) 
It cannot require buildings to be demolished.

Answer 20

(d) 
Non-compliance could result in a fine and the local authority carrying out the necessary work at the land owner’s expense.


Question 21

Which one of the following is correct regarding Commercial Property Standard Enquiries (the ‘CPSEs’)?

(a) The CPSEs will be requested by the buyer’s solicitor.
(b) 
No supplemental enquiries may be raised in addition the CPSEs.

(c) 
The CPSEs are delivered after exchange of contracts.

(d) 
The CPSEs are raised in all residential property transactions.

Answer 21

(a) The CPSEs will be requested by the buyer’s solicitor.

The buyer will request the CPSE.1 and any relevant supplemental CPSE enquiries are raised usually by email. The seller’s solicitor will then ask their client to complete and when received back, will send on to the buyer’s solicitor.


Question 22

Which one of the following is a requirement when using the Law Society Conveyancing Protocol (the ‘Protocol’)?

(a) 
Confirm and update where necessary replies to enquiries if completed more than two months earlier.

(b) 
Additional enquiries seeking the seller’s opinion may be raised.

(c) 
Additional enquiries relating to any issues may be raised.

(d) 
Raising an additional enquiry to clarify issues arising out of the buyer’s mortgage.

(e) 
Submission to the buyer’s solicitor of Property Information Form (TA6) and CPSE.2.

Answer 22

(a) 
Confirm and update where necessary replies to enquiries if completed more than two months earlier.


Question 23

A company is selling a piece of land. In preparing replies to enquiries, the company director states that the company “is not aware of any disputes with neighbouring properties”. The company director can find no disputes in her file for the property. However, the site manager of the land did have a significant verbal dispute (not written down) with the neighbouring land, which he did not bring to the attention of the director.
After completion, the buyer finds out about the dispute. Is the seller protected against a claim by the wording of the reply?

(a) 
No, the director should have spoken to the site manager. 

(b) No, because the seller should not give a reply without being certain as to its truth and the wording “is not aware” has no effect.

(c) 
No, because the seller can only rely on written evidence to provide replies to enquiries.

(d) 
Yes, because the seller has checked her records.

Answer 23

(a) 
No, the director should have spoken to the site manager.

The seller should make reasonable efforts to check records AND speak to appropriate people in the organisation.


Question 24

What forms are used for pre-contract enquiries in commercial property and when are they used?

Answer 24

1. CPSE 1: always used
2. CPSE 2: applies where property is subject to commercial tenancies
3. CPSE 3: applies on grant of new lease
4. CPSE 4-6: applies to other specific circumstances

Question 25

What forms are used for pre-contract enquiries in residential property and when are they used?

Answer 25

1. TA6: always used
2. TA10 - fittings and contents form: always used
3. TA7 - leasehold info form: used where property is leasehold
4. TA8 - new home info form: used where property newly built

Question 26

Which one of the following is correct regarding the Law Society’s Conveyancing Protocol (the ‘Protocol’)?

(a) 
The Protocol must be followed by all solicitors.

(b) 
The Protocol can be used in commercial transactions of freehold and leasehold property.

(c) 
The Protocol can be used in residential transactions of freehold and leasehold property.

(d) 
The Protocol can be used in residential transactions of newly built homes.

Answer 26

(c) 
The Protocol can be used in residential transactions of freehold and leasehold property.


Question 27

When using the Law Society’s Conveyancing Protocol, which list accurately sets out what the solicitors agree to adopt? (Refer to the Protocol at https://www.lawsociety.org.uk/topics/property/conveyancing-protocol)

(a) 
Standard Commercial Property Conditions (incorporated into the contract), Property Forms, Formulae for exchange, Code for Completion by Post.

(b) 
Standard Conditions of Sale (incorporated into the contract), Property Forms, Formulae for completion, Code for Completion by Post.

(c) 
Standard Conditions of Sale (incorporated into the contract), Property Forms, Formulae for exchange, Code for Completion by Telephone.

(d) 
Standard Conditions of Sale (incorporated into the contract), Commercial Property Standard Enquiries, Formulae for exchange, Code for Completion by Post.

(e) 
Standard Conditions of Sale (incorporated into the contract), Property Forms, Formulae for exchange, Code for Completion by Post.

Answer 27

(e) 
Standard Conditions of Sale (incorporated into the contract), Property Forms, Formulae for exchange, Code for Completion by Post.

Question 28

Which one of the following actions would constitute compliance with the Law Society’s Conveyancing Protocol (‘the Protocol’)?

(a) 
A buyer’s solicitor sending two pages of standard enquiries, as well as the Property Forms to the seller’s solicitor.

(b) 
A buyer’s solicitor additional pre-contract enquiry as follows: “Has the property ever suffered from an infestation of rodents?’
(c) 
A seller’s solicitor sending to the buyer’s solicitor official copies of the register that are eight months old.

(d) 
A CQS solicitor not following the Protocol without any justification.

Answer 28

(b) 
A buyer’s solicitor additional pre-contract enquiry as follows: “Has the property ever suffered from an infestation of rodents?’
This is an enquiry of fact, not opinion and the seller should give a reply.


Question 29

What are the consequences if a solicitor who has adopted the Law Conveyancing Protocol breaches it?

Answer 29

Law Society may require explanation potentially leading their being monitored and even removed from Conveyancing Qualify Scheme membership.

Question 30

What will constitute a breach of the Law Conveyancing Protocol by a solicitor who has adopted it?

Answer 30

Solicitor may breach it if they:
1. Use non-protocol ‘standard’ enquiries indiscriminately
2. Raise enquiries that seek seller’s opinion rather than fact

Question 31

True or false: it is mandatory for all solicitors to adopt the Law Conveyancing Protocol in residential transactions.

Answer 31

False - it is voluntary and any solicitor/or licensed conveyancer may adopt it, HOWEVER if a solicitor is a member of the Conveyancing Quality Scheme, they are obligated to adopt it.