Pre-Contract Searches and Enquiries

Question 1

What types of property surveys are available, and why are they crucial for property transactions?

Answer 1

1. Types of Surveys:
   
   • Valuation Survey: Required by lenders, ensures the property is adequate security for the loan but provides limited detail on structural issues.
   • Homebuyers’ Survey: Mid-level survey offering advice on repairs and maintenance.
   • Full Structural Survey: Comprehensive, especially suitable for older or altered properties.
     2. Solicitor’s Role:
   • Recommend an appropriate survey based on the property’s age, condition, and location.
   • Perform a personal inspection (more common in high-value commercial transactions) to:
   • Confirm plan accuracy.
   • Identify unrecorded encumbrances (e.g., drains, pathways, or occupiers).

Question 2

What does the local search encompass, and how does it benefit the buyer?

Answer 2

1. Components:
   * Local Land Charges Search (LLC1): Identifies restrictions (e.g., planning consents, conservation orders, financial charges).

• Standard Enquiries (CON29): Reveals planning permissions, road repair liabilities, and contaminated land designations.
• Optional Enquiries (CON29O): Covers issues like pollution, rights over common land, and additional environmental risks.

2. Solicitor’s Advice:
   * Highlight risks (e.g., development on adjoining fields impacting views).

• Recommend additional searches if standard enquiries don’t address specific concerns.

Question 3

Why is a water and drainage search critical, and what information does it provide?

Answer 3

1. Purpose: Ensures drains and sewers are:
   * Connected to public systems (reducing maintenance costs).

• Adopted by statutory undertakers (water companies), making them responsible for maintenance.

2. Risks Without Connection:

• Buyer may face high costs for maintenance or upgrades.
• Liability if water authority adopts previously private drains or sewers.

3. Common Forms:
   * CON29DW: For residential properties.
   * CommercialDW: For commercial propertie

Question 4

How do environmental searches address risks under the Environmental Protection Act 1990?

Answer 4

1. Purpose: Identifies contaminated land where liability for cleanup may fall on the owner or occupier.
2. Types of Searches:
   * Desktop Search: Uses maps and records from the Environment Agency and local authorities.

• Physical Survey: Soil testing to confirm contamination and suggest remediation measures.

3. Solicitor’s Advice:
   * If contamination is suspected, consider insurance against environmental liability.

• Commission a detailed survey if risks are high.
• Rely on CON29/CON29O for additional environmental queries.

Question 5

What does a flood search reveal, and why is it essential for buyers?

Answer 5

1. Types of Flood Risks:
   
   • River, coastal, surface water, and reservoir flooding.
   • Groundwater flooding (not covered in general online resources like the Environment Agency site).
     2. Key Considerations:
   • Availability and cost of flood insurance under the Flood Re scheme (residential properties only).
   • Commercial properties may face limited or expensive insurance.
     3. Further Actions:
   • Obtain specialist flood risk reports.
   • Consider mitigation measures if risks are identified.

Question 6

What specialized searches may be necessary for specific properties?

Answer 6

1. Chancel Repairs:
   
   • Liability for church repairs applies to certain properties in Church of England parishes.
   • Even if unlikely, consider insurance as a cost-effective safeguard.
     2. Mining Searches:
   • Coal Mining Search (CON29M): Reveals risks of subsidence and mining claims in coalfield areas.
   • Other regions may require searches for tin (Cornwall), limestone (Midlands), or brine (Cheshire).
     3. Canal & River Trust Search:
   • Identifies maintenance liabilities for adjacent waterways and towpaths.
     4. Commons Search:
   • Protects against restrictions related to common land rights under the Commons Registration Act 1965.

Question 7

How do railway and highway searches address specific property risks?

Answer 7

1. Railways:
   
   • Check for obligations to maintain boundaries with railway lines.
   • Use CON29 Enquiry 22 for proposed rail schemes like HS2 or Crossrail.
   • Advise buyers about potential building restrictions near railway lines.
2. Highways:
   
   • Confirm public maintenance of roads, verges, and pavements adjoining the property.
   • Resolve potential ransom strip issues by consulting the highways authority.

Question 8

What searches are necessary for unregistered land or company-owned properties?

Answer 8

1. Unregistered Land:
   * Index Map Search (SIM): Identifies registered interests in unregistered land.

• Land Charges Search: Reveals historical covenants, easements, or other encumbrances.

2. Company Searches:
   * Verify the seller’s capacity to transact (via Companies House).

• Confirm no insolvency issues or fixed charges affecting the property.
• Repeat search before completion to detect last-minute changes.

3. Bankruptcy/Insolvency Search:

• For individual sellers, submit K16 Form to the Land Charges Department.
• For corporate sellers, include insolvency checks in the company search.

Question 9

What factors should be considered when deciding which searches and enquiries are relevant for a property?

Answer 9

1. Type of Property: Residential, commercial, or mixed-use.
   
   2. Location: Proximity to features like rivers, industrial sites, or railways.
   3. Age and Condition: Older properties may require structural or environmental surveys.
   4. Planned Use: Buyer’s intended use may necessitate additional enquiries (e.g., planning permissions for alterations).
   5. Cost-Benefit Analysis: Avoid unnecessary searches if costs outweigh the benefits.

Question 10

What searches and enquiries are relevant for 25 Victoria Street, converted to a dental surgery with an extension?

Answer 10

1. LLC1 Search: Planning permissions for change of use and extensions.
   
   2. CON29 Search: Details of permissions, building regulation consents, and potential enforcement notices.
   3. CON29O Search: Information about completion notices for building work.
   4. Pre-Contract Enquiries:
      * Ask the seller for evidence of permissions and consents.
      * Verify compliance with planning conditions.
   5. Survey: To assess the condition of the building and extension.

Question 11

What additional searches and enquiries are relevant for Lavender House, a Victorian property near a river and industrial land?

Answer 11

1. Structural Survey: To assess the poor state of repair.
   
   2. Canal & River Trust Search: To determine responsibility for the riverbank.
   3. Flood Search: Risk assessment due to proximity to the river.
   4. Environmental Search: Potential contamination from industrial land.
   5. Chancel Repair Search: Liability check for nearby Church of England parish repairs.
   6. Coal and Limestone Mining Searches: To identify risks of subsidence.
   7. HS2 Enquiry: Check for impact of HS2 route through Cheshire.

Question 12

What steps should a buyer’s solicitor take if planning permission conditions are revealed during a search?

Answer 12

1. Obtain the Planning Permission: Check conditions from the seller or local authority.
   
   2. Verify Compliance: Ensure conditions have been met to avoid enforcement action.
   3. Review Additional Searches:
      * CON29: Check for enforcement or stop notices.
      * CON29O: Look for completion notices.
   4. Advise the Buyer: Highlight risks of breaches or limitations on alterations.

Question 13

What should a solicitor do if a road adjacent to a property is not publicly maintained?

Answer 13

1. Check Easements: Determine if the buyer has a legal right to use the road (e.g., express or implied easement).
   
   2. Maintenance Responsibility: Ask the seller about private maintenance arrangements and costs.
   3. Survey Road Condition: Assess costs for potential upgrades if the road is to be adopted.
   4. Timing and Costs: Obtain details from the local authority about the adoption process and buyer’s financial contribution.

Question 14

Why is it important to identify Tree Preservation Orders (TPOs) in a local search?

Answer 14

1. Purpose: Protect trees of community value.
   
   2. Implications:
      * Illegal to lop or fell trees without local authority consent.
      * Planning applications may need to consider TPO constraints.
   3. Action: Obtain a copy of the TPO, verify tree locations, and ensure compliance.

Question 15

What are the implications of smoke control orders and conservation areas for a buyer?

Answer 15

1. Smoke Control Orders:
   
   • Restrict use of non-smokeless fuels in fireplaces.
   • Potential impact on properties with open fireplaces.
     2. Conservation Areas:
   • Stricter rules on property alterations to preserve historical or aesthetic character.
   • Advise buyer on limitations and implications for renovation plans.

Question 16

How should a solicitor address issues related to adult occupiers during a title investigation?

Answer 16

1. Identify Occupiers:
   * Raise pre-contract enquiries to determine if any adults occupy the property.
2. Verify Rights:
   * Non-owning spouses may have protected home rights under the Family Law Act 1996.

• Other occupiers could claim equitable interests or tenancies.

3. Obtain Releases:
   * Require occupiers to sign releases of rights and agreements to vacate before completion.

• Include this requirement in the contract.

Question 17

What is chancel repair liability, and how can it affect a property buyer?

Answer 17

1. Definition: Owners of properties in certain Church of England parishes may be liable for repairing the chancel of a medieval church under the Chancel Repairs Act 1932.
2. Key Case: In Wallbank (2003), Mr. and Mrs. Wallbank were ordered to pay £186,000 for repairs to St. John the Baptist Church in Aston Cantlow.
3. Registered Land:
   
   • Liability lost overriding status on 13 October 2013.
   • Continues to bind buyers if the last transfer for value occurred before this date.
     4. Unregistered Land:
   • Liability binds buyers if:
   • It is mentioned in the title deeds.
   • A caution against first registration was lodged before registration during the “registration gap.”
4. Solicitor’s Action:
   * Conduct a chancel repair search.
   * Advise on insurance as a cost-effective alternative to investigating liability.

Question 18

Why are mining searches important, and what risks do they address?

Answer 18

1. Purpose: Identify risks from historic or active mining, including subsidence and structural damage.
   
   2. Coal Mining Search (CON29M):
      * Confirms mining activity, mine shafts, underground workings, and pending or settled subsidence claims.
      * Past claims may prevent future compensation.
   3. Other Areas:
      * Tin (Cornwall, Devon, Somerset).
      * Limestone (West Midlands).
      * Brine and Salt (Cheshire).
   4. When to Conduct: If mines and minerals reservations are noted in the title or if the property is in a mining-prone area.
   5. Solicitor’s Action: Recommend searches where risks are relevant to the location or property history.

Question 19

How do rights over common land or village greens affect property buyers?

Answer 19

• Rights (e.g., grazing or access) protected under the Commons Registration Act 1965.
  
  • Councils maintain registers of common land and village greens.
    2. Impact:
  • Can limit development or personal use of the property.
  • May restrict fencing or construction on the property.
    3. Solicitor’s Action:
  • Raise optional enquiry 22 in the CON29O form.
  • Review designations and implications for the buyer’s intended use.

Question 20

What specific concerns arise for properties adjoining railway lines?

Answer 20

1. Potential Issues:
   
   • Boundary maintenance obligations.
   • Restrictions on building near the railway.
   • Noise, vibrations, and future expansion plans.
     2. Solicitor’s Action:
   • Raise pre-contract enquiries with the seller (may yield limited details).
   • Conduct searches for specific schemes like HS2 or Crossrail through the CON29 enquiry 22.
   • Advise on potential future impacts and recommend consultation with Network Rail for specific proposals.

Question 21

Why are highway-related searches important for properties adjoining roads?

Answer 21

1. Key Checks (CON29 enquiry 2):
   
   • Determine if roads are public highways maintained at public expense.
   • Identify private ownership of verges or ransom strips that could block access.
   • Clarify road adoption plans and potential costs for upgrading private roads.
     2. Solicitor’s Action:
   • Consult the highways authority to map boundaries and clarify maintenance responsibilities.
   • Advise on buyer contributions for adoption, if required.
   • Recommend a surveyor’s assessment of road condition.

Question 22

What searches are required when purchasing unregistered land?

Answer 22

1. Index Map Search (SIM):
   
   • Identifies any registered interests affecting unregistered land.
     2. Land Charges Search:
   • Checks for historical covenants, easements, or encumbrances against past estate owners.
     3. Purpose:
   • Ensures clear title.
   • Identifies potential binding third-party rights.
     4. Solicitor’s Action: Conduct searches against all previous owners revealed in the epitome of title.

Question 23

What is the purpose of a company search when the seller is a company?

Answer 23

1. Purpose:
   
   • Confirm the company’s capacity to transact.
   • Verify the current officers authorized to sign documents.
   • Identify fixed or floating charges affecting the property.
     2. Timing:
   • Conduct before exchange of contracts.
   • Repeat before completion to detect insolvency or new encumbrances.
     3. Unregistered Land: Perform searches against corporate estate owners in the epitome of title.

Question 24

How does a solicitor decide which searches are relevant for a particular property?

Answer 24

1. Factors to Consider:
   
   • Location: Is the property near railways, industrial areas, or waterways?
   • Property Use: Residential, commercial, or mixed use.
   • Planned Development: Buyer’s intended use (e.g., renovations, extensions).
     2. Cost-Benefit Analysis:
   • Avoid unnecessary searches unless justified by risk.
   • Recommend insurance solutions (e.g., chancel repair liability) when more cost-effective.
     3. Solicitor’s Role:
   • Tailor searches to specific risks and property details.
   • Communicate findings and implications clearly to the buyer.