Pre-Contract Searches and Enquiries

Question 1

What is a report on title?

Answer 1

A report on title is a document in which the buyer’s solicitor reports to the buyer on the title of the property they seek to purchase or lease. The resources the solicitor will use are:
* Search results;
* Replies to enquiries

It will include things like: benefits, burdens, boundaries, the state of the land etc.

Question 2

What should the report on title state about the report itself?

Answer 2

That it is based on searches and enquiries and, therefore, if something did not show up in a search or enquiry, the solicitor is not liable. Solicitor must not advise on commerciality of transaction or conduct physical investigations.

Question 3

What is the purpose of conducting searches and enquiries in real estate transactions?

Answer 3

To fulfill the buyer’s duty of caveat emptor by uncovering any issues related to the property, ensuring the buyer is fully informed.

Question 4

When are searches typically conducted in the conveyancing process?

Answer 4

After the draft contract and title are received from the seller’s solicitor.

Question 5

What are the components of the local search?

Answer 5

• CON29
• LLC1

Both show matters within the knowledge of the local authority (i.e planning permission grants and applications, rights of way, roads and building regulations).

Question 6

What does a desktop environmental search investigate?

Answer 6

The historical contamination of the land, to determine liability for clean-up costs.

Question 7

What is the significance of the chancel repair liability search?

Answer 7

To check for any obligations to contribute to the repair of the local church, which must be registered to be enforceable after October 2013.

Question 8

What might a CON29O search reveal?

Answer 8

• Information about village or town greens;
• conservation areas
• noise abatement zones
• pipelines

Question 9

Why is the highways search important for commercial properties?

Answer 9

To ensure that the public highway abuts the property boundary, which is critical for access.

Question 10

Which searches should always be done?

Answer 10

• Local search (CON29, LLC1)
• Desktop environmental survey
• Chancel repair liability
• Drainage and water enquiries

Question 11

Which additional searches may be carried out if necessary?

Answer 11

• Flood searches
• SIM search
• K15 and K16
• Utilities search
• Coal mining, cheshire salt, tin, clay and limestone searches;
• Environmental Phase I / II survey
• Railways search
• Waterways search

Question 12

What is a central land charges search (K15) used for?

Answer 12

For unregistered properties, it checks for any land charges against the full names of the seller and previous owners.

Question 13

When is a bankruptcy search (K16) necessary?

Answer 13

• For residential transactions not at full market value or when a buyer is taking out a mortgage

Question 14

What must a buyer’s solicitor check regarding planning permissions and building regulations?

Answer 14

Whether planning consents were required and obtained, and whether there is a risk of enforcement.

Question 15

When is planning permission required?

Answer 15

When carrying out a ‘development’, i.e:
* certain building works and material change of use (change of use class)

Work is NOT a development where:
* It only effects the interior;
* building works do not materially affect external appearance
* GDPO in place + no art.4 direction.

Question 16

What does the General Permitted Development Order (GDPO) 2015 allow?

Answer 16

Certain developments without planning permission in a specific local area, unless excluded by an Article 4 direction.

Question 17

What is a certificate of lawfulness?

Answer 17

Not planning permission but can confirm whether the work amounts to a development or falls within a GDPO.

Question 18

What additional consents are required for listed buildings and properties in conservation areas?

Answer 18

• Listed building consent is needed for the demolition, alteration or extension of listed buildings;
• Planning permission is required to demolish a building in a conservation area or cut back trees.

Question 19

What are the limitation periods for planning enforcement actions?

Answer 19

• 4 years for building works (starting on date substantially completed) or change of use to use as a single dwelling house
• 10 years for other changes of use or breaches.

Question 20

What enforcement actions can local authorities take against planning breaches?

Answer 20

1. Enforcement notices = 28 days to comply or LA can take measures to comply and recover expense.
2. Stop notices = to stop the offending action, cannot be used for dwelling house use or where breach has continued for 4 years.
3. Injunctions
4. Planning enforcement orders = application to Magistrates Court where out of time for compliance because breach concealed = time starts running from date concealment removed.

Question 21

What are the key aspects of building regulations that must be checked?

Answer 21

Compliance for erections, extensions, installations, material changes of use, and health and safety issues.

Question 22

How can building regulation compliance be obtained?

Answer 22

Through an inspector’s compliance certificate or self-certification via schemes like FENSA.

Question 23

What enforcement actions can be taken for breaches of building regulations?

Answer 23

1. Enforcement notices = can apply 1 year after completion of building work.
2. Prosecutions in Magistrates’ Court = up to 6 mths after discovery and 2 years after BW complete.
3. Injunctions = no time limit if work unsafe.

Question 24

What options does a buyer have if a planning or building regulation breach is discovered?

Answer 24

Withdraw from the transaction, invite the seller to regularize the issue, obtain an indemnity policy (although cannot avoid liability for death or personal injury + only covers financial losses for enforcement), or seek retroactive permissions or certificates.

Question 25

What are Commercial Property Standard Enquiries (CPSEs)?

Answer 25

Standard enquiries used for commercial properties to gather information about boundaries, benefits, burdens, access, physical condition, utilities, services, planning permissions, and occupiers.

CPSE 1 = freehold
CPSE 2 = commercial tenancies
CPSE 3 = grant of new lease
CPSE 4 = assignments

Question 26

What forms are commonly used in the Law Society Conveyancing Protocol for residential properties?

Answer 26

• TA6 (Property Information Form)
• TA7 (Leasehold Information Form)
• TA8 (New Home Information Form) and
• TA10 (Fittings and Contents Form).

TA 6 and TA 10 always used.

Question 27

What is the liability of a seller regarding replies to enquiries?

Answer 27

The seller cannot deliberately mislead the buyer and must provide accurate information.

By saying ‘not so far as the seller is aware’ implied reasonable investigation. Misrepresentation claims can arise if the seller provides false information.