Pre-contract searches and enquiries Flashcards
pre-exchange stage*-reports on title, searches & enquiries, local searches, planning permission and building regulations
What is a report on title?
report in which a sol reports to its client on its investigation of title, search results and replies to enquiries
what does a report on title reveal?
- material facts in respect of property
- issues and their implications
- solutions available
what should a report on title set out?
- state it’s based on reviewing title docs, search results, planning docs and replies to enquires
- set out limitations to sol’s liability (not their fault if search doesn’t identify an issue that should have been revealed)
which parties carry out searches?
- B’s sol usually
- lender’s sol may carry out searches also
What are the 5 standard searches?
1- Local search, LLC1 & CON29
2- Drainage and water enquiries
3- Desktop environmental search
4- Chancel repair liability
5- depending on type of title
— land charges search (unregistered land)
—SIM
— Companies search
what are the optional searches?
- CON290
- Highways search
- Coal mining search
- Cheshire salt
- Tin, clay and limestone
- Phase I/Phase Il survey
- Flood search
- Utility providers
- Railways - overground, underground, crossrail or HS2
- Waterway
what is the role of the National Land Information Service (NLIS)?
an intermediary between solicitors and various institutions to complete searches (eg searchflow)
what is the function of the local search?
covers matters of property within knowledge of local authority, comprised by 3 parts
1- Standard enquiries (Form CON29)
2- Optional enquiries (Form CON290)
3- Local Land Charges search LLC1
what is the function of CON29?
reveals things such as:
- planning consents, refusal and completion notices
- building regulations
- roads and public rights of way
- environmental notices (contaminated land)
What is the function of LLC1?
search of the local authority’s register of local land charges
there are 12 parts (p4 of notes)
What does Drainage and water search reveal?
- checks surface water from property drain to public sewer
- if property is connected to mains water supply
What does desktop environmental search reveal?
- contaminated land
- likelihood of flooding
- susceptibility to natural subsidence
- industrial land uses within 250m of property
What does the chancel repair search reveal?
- affects properties in parishes where there’s pre-reformation church
- responsibility for repair of church roof was shared between church and parishioners
What does the highways search reveal?
- whether roads included in search are adopted highway
- shows boundary for public highway on a map
- necessary to ensure there is rights of access to land
What are pre-contract enquiries?
B’s sol raises queries with S’s sol, and S’s sol provides replies.
-There are commercial property (CPSE1) and residential property (TA6, TA10)
CPSE1 (commercial property standard enquiries)
true or false-
Seller can decline to answer enquiries if they have no knowledge of property
true- ‘not so far as seller is aware’
What are the pre-contract searches relating to title/seller?
- SIM
- MapSearch
- Central Land Charges (k15 form)
- Bankruptcy search (k16 form)
- Companies search
What is the key difference between LLC1 and CON29?
both give details about what planning permissions have actually been granted
- CON29 will also reveal refusals, current applications, pending decisions
What are planning permissions?
when carrying out certain building works or a material change of use, permission is needed unless it falls within an exception.
what are the exceptions to planning permissions?
- works that only affect interior of building; or
- works that don’t materially affect external appearance of building; or
- changes of use within the same classes
Define Sui generis within material use classes
uses that don’t belong to a use class, means that any change will require planning permission
What is permitted development?
Town and Country Planning (GPDO) allows certain developments without planning permission
what are listed buildings?
buildings of special architecture or historic interest
- apart from planning permission, listed building consent is needed for any change.
What does Building Regulations apply to?
applies to building work which includes:
- erection or extension or a building
- installation or extension of a service / fitting controlled under a building
- work required where there’s material change of use of whole building
how is building regulation consent and approval received?
- work may be inspected by building inspector, who will issue certificate of compliance if work is in accordance with regulations
- self-certification schemes exist for certain types of work
When is there a breach of planning control?
when a development has happened without planning permission or a condition / limitation of planning permission is breached
- B’s sol much check for this as enforcement is against current owner
What are local authority’s enforcement options for breach of planning permission?
- enforcement notice= gives 28days notice to restore land or comply with conditions / limitations of permission
- stop notice= only served after an enforcement notice is served, requires that specific activity stops immediately.
(cannot prohibit activity ongoing 4y> and use of dwelling house) - injunction
What are the enforcement time limits?
- 4 years= building works and change of use to single dwelling house
- 10 years= other changes of use and breach of planning condition
what happens where enforcement of breach of permission is outside of time limit?
- if breach was deliberately concealed, local authority can apply to magistrates’ court
what are the local authority’s enforcement options for breach of building regulations?
- prosecution=
local authority has 6m after discovering breach to prosecute - enforcement notice=
local authority has 1y after completion of building work to serve a notice, giving owner 28d to alter work - if owner fails, they can do it at owner’s expense
- injunction=
authority can apply to court if work is unsafe and there’s no time limit
what sources will help B’s sol with checking compliance of land with planning and building regulations?
- Local search
- Seller’s replies to enquiries
- Buyer’s survey
What options are available to B on discovering breach of planning or building reg?
- withdraw from transaction
- obtain indemnity insurance (at S’s expense)
- invite S to regularise matters before completion by altering / removing work
- have S obtain retrospective permission or regularisation certificate
What is CPSE1?
applies to all commercial property transactions and covers matters like:
- responsibility for boundaries, and their extent
-rights benefiting and burdening the property
-access to the property
-physical condition
-contents
-utilities and services
-planning and building regulations
-occupiers and employees
-notices and disputes
-Value Added Tax (VAT) treatment
what does the TA (6) residential form cover?
boundaries
-rights benefiting and burdening the property
-disputes, complaints and notices
-alterations
-planning and building regulations
-occupiers
-services and utilities
-energy efficiency
what are the remedies for S’s incorrect replies to pre-contract enquiries?
misrepresentation = damages or rescission
error or omission= B to rescind the contract
how should solicitor act when Seller is their client for pre-contract enquiry replies?
ensure answers are ‘not so far as seller is aware’ where they’re unable to answer.
