Pre-contract searches and enquiries

Question 1

What is a report on title?

Answer 1

report in which a sol reports to its client on its investigation of title, search results and replies to enquiries

Question 2

what does a report on title reveal?

Answer 2

• material facts in respect of property
• issues and their implications
• solutions available

Question 3

what should a report on title set out?

Answer 3

• 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)

Question 4

which parties carry out searches?

Answer 4

• B’s sol usually
• lender’s sol may carry out searches also

Question 5

What are the 5 standard searches?

Answer 5

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

Question 6

what are the optional searches?

Answer 6

• 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

Question 7

what is the role of the National Land Information Service (NLIS)?

Answer 7

an intermediary between solicitors and various institutions to complete searches (eg searchflow)

Question 8

what is the function of the local search?

Answer 8

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

Question 9

what is the function of CON29?

Answer 9

reveals things such as:
- planning consents, refusal and completion notices
- building regulations
- roads and public rights of way
- environmental notices (contaminated land)

Question 10

What is the function of LLC1?

Answer 10

search of the local authority’s register of local land charges
there are 12 parts (p4 of notes)

Question 11

What does Drainage and water search reveal?

Answer 11

• checks surface water from property drain to public sewer
• if property is connected to mains water supply

Question 12

What does desktop environmental search reveal?

Answer 12

• contaminated land
• likelihood of flooding
• susceptibility to natural subsidence
• industrial land uses within 250m of property

Question 13

What does the chancel repair search reveal?

Answer 13

• affects properties in parishes where there’s pre-reformation church
• responsibility for repair of church roof was shared between church and parishioners

Question 14

What does the highways search reveal?

Answer 14

• 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

Question 15

What are pre-contract enquiries?

Answer 15

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)

Question 16

true or false-
Seller can decline to answer enquiries if they have no knowledge of property

Answer 16

true- ‘not so far as seller is aware’

Question 17

What are the pre-contract searches relating to title/seller?

Answer 17

• SIM
• MapSearch
• Central Land Charges (k15 form)
• Bankruptcy search (k16 form)
• Companies search

Question 18

What is the key difference between LLC1 and CON29?

Answer 18

both give details about what planning permissions have actually been granted

• CON29 will also reveal refusals, current applications, pending decisions

Question 19

What are planning permissions?

Answer 19

when carrying out certain building works or a material change of use, permission is needed unless it falls within an exception.

Question 20

what are the exceptions to planning permissions?

Answer 20

• 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

Question 21

Define Sui generis within material use classes

Answer 21

uses that don’t belong to a use class, means that any change will require planning permission

Question 22

What is permitted development?

Answer 22

Town and Country Planning (GPDO) allows certain developments without planning permission

Question 23

what are listed buildings?

Answer 23

buildings of special architecture or historic interest
- apart from planning permission, listed building consent is needed for any change.

Question 24

What does Building Regulations apply to?

Answer 24

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

Question 25

how is building regulation consent and approval received?

Answer 25

• 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

Question 26

When is there a breach of planning control?

Answer 26

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

Question 27

What are local authority’s enforcement options for breach of planning permission?

Answer 27

• 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

Question 28

What are the enforcement time limits?

Answer 28

• 4 years= building works and change of use to single dwelling house
• 10 years= other changes of use and breach of planning condition

Question 29

what happens where enforcement of breach of permission is outside of time limit?

Answer 29

• if breach was deliberately concealed, local authority can apply to magistrates’ court

Question 30

what are the local authority’s enforcement options for breach of building regulations?

Answer 30

• 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

Question 31

what sources will help B’s sol with checking compliance of land with planning and building regulations?

Answer 31

• Local search
• Seller’s replies to enquiries
• Buyer’s survey

Question 32

What options are available to B on discovering breach of planning or building reg?

Answer 32

• 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

Question 33

What is CPSE1?

Answer 33

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

Question 34

what does the TA (6) residential form cover?

Answer 34

boundaries
-rights benefiting and burdening the property
-disputes, complaints and notices
-alterations
-planning and building regulations
-occupiers
-services and utilities
-energy efficiency

Question 35

what are the remedies for S’s incorrect replies to pre-contract enquiries?

Answer 35

misrepresentation = damages or rescission
error or omission= B to rescind the contract

Question 36

how should solicitor act when Seller is their client for pre-contract enquiry replies?

Answer 36

ensure answers are ‘not so far as seller is aware’ where they’re unable to answer.