Pre- contract Searches and Enquiries

Question 1

Why are pre-contract searches and enquiries necessary?

Answer 1

‘Caveat emptor’ (buyer beware)

Question 2

What does the principle of ‘caveat emptor’ mean?

Answer 2

‘Buyer beware’ - buyer must take the property as they find it and seller has very limited duty to disclose

Question 3

What are the 2 main exceptions to the principle of caveat emptor?

Answer 3

(1) Concealment of physical defects (e.g. painting over damp)

(2) Providing a misleading reply to specific query raised (by buyer’s solicitor)

Question 4

Is the seller or buyer’s solicitor responsible for carrying out pre-contract searches / enquiries?

Answer 4

Sellers

Question 5

What 5 pre-contract searches should be carried out by the buyer’s solicitor in REGISTERED LAND?

Answer 5

(1) Survey and personal inspection
(2) Pre-contract enquiries (form TA6)
(2) Local search (CON29 / LLC1)
(3) Water and drainage search
(4) Desktop environmental search
(5) Chancel repair search

Question 6

What 7 pre-contract searches should be carried out by the buyer’s solicitor in UNREGISTERED LAND?

Answer 6

(1) Survey and personal inspection
(2) Pre-contract enquiries
(3) Local search (CON29 / LLC1)
(4) Water and drainage search
(5) Desktop environmental search
(6) Chancel repair search
(7) Index Map search
(8) Land Charges search (K15)

Question 7

What type of survey is recommended for a buyer who:

(a) Has concerns about the condition of the property or plans to make alterations after purchase?
(b) Does NOT?

Answer 7

(a) Full structural survey
(b) Homebuyer report

Question 8

(a) What type of survey will be REQUIRED by a lender?

(b) What are the limitations of this survey?

Answer 8

(a) Basic valuation

(b) Lender NOT buyer focused - only identifies obvious defects

Question 9

What are 3 common examples of issues a buyer’s solicitor will raise in the ‘Pre-contract enquiries’ (form TA6) to the seller?

Answer 9

(1) Disputes with neighbours
(2) Any third parties occupying property
(3) Compliance with covenants

Question 10

What 3 searches make up the Local Search and are they mandatory or discretionary?

Answer 10

(1) CON29 (mandatory)
(2) LLC1 (mandatory)
(3) CON29O (discretionary - normally commercial only)

Question 11

(1) What do the results of the Local Search reveal?

(2) What are 4 examples of these?

Answer 11

(1) Matters known by / imposed by local authority

(2)
(a) Planning consents
(b) Restrictions on development (e.g. Art 4 Directions)
(c) Land designated as contaminated (in PAST)
(d) Road maintenance / public or private road

Question 12

What is the main limitation of the Local Search?

Answer 12

Will give no information on neighbouring property / land
(e.g. planning permission on a field next to the house)

Question 13

(a) What is the purpose of the Water and Drainage search?

(b) Why could this be an issue for the buyer?

Answer 13

(a) Check the property is connected to a PUBLIC water supply and sewer

(b) If NOT, buyer could be liable for maintenance of sewer and costs of bringing them up to adoption standard if adopted by water authority

Question 14

(1) What does the Desktop Environmental Search reveal?

(2) How is this different from Local Search?

Answer 14

(1) Likelihood of contamination in the FUTURE
(2) Designated as contaminated in PAST (by LA notices)

Question 15

(a) What 2 searches provide information about the risk of flooding?

(b) When should the second search be used?

Answer 15

(a)
(1) Desktop environmental search
(2) Flood search

(b) Flood search - IF property by a river / coast

Question 16

(1) What search should be carried out if a property is near / adjacent to a river or canal?

(2) What does this search show?

Answer 16

(1) Canal and River Trust Search

(2) Buyer’s liability to maintain / repair the waterways and banks

Question 16

(1) What does a Chancel Repair Search show?

(2) Under what 2 circumstances is the search the most important?

Answer 16

(1) Liability for maintenance / repair of a Chancel in a church

(2)
(a) No transfer for value since 13 October 2013 (why? - overriding interest if pre then)
(b) Property near church

Question 17

(1) What 2 searches give information regarding roads adjoining a property (e.g public vs private, cost of maintenance)

(2) When should the second search be used?

Answer 17

(1)
(a) Local Search (CON29)
(b) Highway Search

(2) Highway Search - land in private ownership between the property and highway. Local search NOT cover e.g. pavements

Question 18

If the seller is a COMPANY, what search MUST be carried out?

Answer 18

Company Search

Question 19

What are the 2 main pre-contract searches that should be carried out in unregistered land?

Answer 19

(1) Index Map Search
(2) Land Charges Search (K15)

Question 20

(1) What 2 key pieces of information are revealed by an Index Map Search?
(2) Where is the search carried out?

Answer 20

(1)
(a) Land is registered / unregistered
(b) Caution against first registration (i.e. does another person have a claim to the property)

(2)
(a) Land Registry

Question 21

Where is an interest in UNREGISTERED LAND registered at the Land Charges Registry, against what should it be registered against?

Answer 21

Owner of the land at the TIME

Question 22

In UNREGISTERED LAND, what class of land charge is needed to make the following binding?
(1) Equitable easement
(2) Estate contract

Answer 22

(1) D(iii)
(2) C(iv)

Question 23

(1) What is the purpose of a Land Charges Search (K15)
(2) Against whom is the search carried out and for how long?
(3) Is the search in exact dates or years?

Answer 23

(1) To identify if interests in the land are binding on the buyer
(2) Against the owner of the land for the period they owned it
(3) Years

Question 24

A conveyance in the Epitome of Title lists the FIRST estate owner as Emily Bronte from 16/04/1948 to 12/01/1990. When carrying out the Land Charges Search (K15):
(1) Who should the search be against?
(2) From what years?
(3) Explain your answer to (2) ?

Answer 24

(1) Emily Bronte
(2) 1926 to 1990
(3) Search back to 1926 when register began

Question 25

In UNREGISTERED LAND, if the property has a mortgage will this be in the Land Charges Registry?

Answer 25

1st Mortgage - Deeds
2nd etc Mortgage - Land Charges Registry