Pre-contract Searches and Enquiries Flashcards
What is the principle that governs property purchases in England and Wales?
Caveat Emptor - let the buyer beware. The seller has a limited duty to disclose matters affecting the property title.
Why are pre-contract searches and enquiries necessary in property purchases?
To ensure the buyer has as much information as possible about the property before entering a binding contract, as the seller has a limited duty to disclose.
What could happen if a solicitor fails to make the correct searches and enquiries?
A claim of negligence from the buyer if they suffer a loss due to undiscovered issues with the property
Who is primarily responsible for conducting the due diligence process in a conveyancing transaction?
The buyer’s solicitor
Besides the buyer, who else benefits from the information revealed through searches and enquiries?
Lenders who are providing a mortgage on the property.
What are some searches and enquiries relevant to every property?
● Survey and personal inspection
● Local search (LLC1 and CON29)
● Water and drainage search (CON29DW/CommercialDW)
● Pre-contract enquiries of the seller
● Environmental searches
● Flood search
What are some searches and enquiries relevant to particular properties?
● Chancel repairs search
● Mining searches (CON29M)
● Canal & River Trust Search
● Commons search
● Railways search
● Highways search
● Unregistered land searches (SIM and K15)
● Company Search
● Bankruptcy/Insolvency Search (K16 for individuals)
What factors should a solicitor consider when deciding which searches to commission?
The type, location, value of the property, and the buyer’s intended use. The solicitor should balance the cost of the search with the potential benefit to the buyer.
A buyer is purchasing a large Victorian property next to a river. What additional searches might be relevant in this scenario?
● Canal & River Trust search
● Flood search
● Environmental search
● Chancel repair search
● Coal mining search (and potentially limestone search)
● HS2 enquiry
A buyer is purchasing a property that has been converted from residential to commercial use. What specific searches and enquiries would be relevant?
● LLC1 search to check for planning permissions for change of use and building operations.
● CON29 search to confirm planning permissions, building regulations consents, enforcement notices, and stop notices.
● CON29O search for completion notices related to building work.
● Pre-contract enquiries of the seller about planning permissions, building regulation consents, and compliance with regulations.
● Survey to assess the building’s condition, including any extensions.
What information might an LLC1 search reveal about a property?
Financial charges or restrictions on the land imposed by public authorities, including:
● Planning consents
● Tree preservation orders
● Smoke control orders
● Conservation area designations
What information might a CON29 search reveal about roads adjoining a property?
Whether a road is:
● A public highway maintained at public expense.
● Subject to adoption and if there is an agreement with a bond or bond waiver.
● To be made up by a local authority who will reclaim costs from the frontagers.
Why is it important to check for Tree Preservation Orders (TPO)?
A TPO protects trees of amenity value. It’s a criminal offense to lop or fell a tree subject to a TPO without consent.
What potential issue might a Smoke Control Order reveal?
Restrictions on using non-smokeless fuels in domestic fireplaces.
What should a solicitor do if pre-contract enquiries reveal adult occupiers in the property?
The seller should be required to obtain from the occupier a release of all rights in the property and agreement to vacate on or prior to completion. This is typically addressed in the contract.
