Pre-contract stage - Searches and enquiries

Question 1

Who makes the searches and raises the enquiries?

Answer 1

The buyer’s solicitor. Failure to make the correct searches and enquiries can give rise to a claim of negligence from a buyer if the buyer should suffer a loss

Question 2

Relevant to every property

Answer 2

1) Survey
2) Local search
3) Water and drainage
4) Pre-contract enquiries of the seller
5) Environmental searches
6) Flood search

Question 3

Particular properties

Answer 3

1) Chancel repairs
2) Mining
3) Canal & River
4) Commons search
5) Railway
6) Highway
7) Unregistered land
8) Company
9) Bankruptcy

Question 4

Survey and personal inspection

Answer 4

It will reveal the structural state of the property, the physical location of the boundary features and how the property is accessed. Age of property is important (built in 70s) then a structural survey should be conducted to check it is structurally sound. If they are planning building works important to ascertain whether property is subject to lease which will be ascertainable on inspection. If the buyer is relying on a mortgage then the lender will REQUIRE a valuation which assesses whether the property is adequate security for a loan however it will not tell them much about the structure of the property. ‘Homebuyer’s valuation and survey’ is less detailed and cheaper. Check who is in occupation

Question 5

The local search - LLC1 and CON29R

Answer 5

Will show any planning history including any current planning permission and financial or other order affect the property and the extent of the public highways surrounding the property and sees if main road affording access to the property is an adopted highway maintainable at public expense. Need to also check if current use of property is authorised

Question 6

The local search - Tree preservation order

Answer 6

If there is one in place it may prevent the buyer from removing trees in the are in which they plan to build

Question 7

Water and drainage search - CommercialDW

Answer 7

Establishes is connected to mains water and foul and surface water drainage also whether the drains and sewers serving the property are ‘adopted’ and therefore the responsibility of the statutory undertaker rather than the owner of the property if the not they will be liable for the costs of maintenance.

Question 8

Water and drainage search CommercialDW - Building

Answer 8

If they intend to build or extend then it will show whether there are public water pipes or public sewers located within the boundary of the property is so they will not be able to build over these

Question 9

Pre-contract enquiries of the seller

Answer 9

Questions the seller is required to answer. Typical enquiries include whether the seller has had any disputes regarding the property, whether there are any third parties occupying the property, compliance with any covenants contained within the title, any planning permissions, issues about boundary maintenance and in the case of commercial properties, the VAT status of the transaction

Question 10

Environmental searches - Desktop

Answer 10

It will show whether there is a risk that contaminative uses have taken place on the Property or in the surrounding area. If the search shows a risk it would be advisable to conduct a full intrusive survey and take soil samples to establish whether the property is actually contaminated. If it is and the original polluter cannot be found then the current owner will have to pay for the cost of remediation which could be costly

Question 11

Flood search

Answer 11

To identify whether the property is at a greater than normal risk of flooding. If it is close to a river or the coast and also check surface water flooding.

Question 12

Chancel repairs search

Answer 12

Relevant where property is unregistered, and it’s not been sold since 2013. It will establish whether owners of the property are under the obligation to contribute to the cost of maintenance of churches in the surrounding area. If it has not been sold since 2013 then there is no need to conduct the search as any liability to contribute will appear on the charges register for the property.

Question 13

Mining searches - CON29M

Answer 13

The search will confirm if the property is in a coal mining area and whether there has been a claim for subsidence. If property is in Yorkshire as Yorkshire is a coal mining area. Also if they plan to redevelop the property and there is ground instability caused by previous mining buyer needs to know

Question 14

Canal and river trust search

Answer 14

If the property is adjacent to a river or a canal, the buyer needs to be made aware of any liability for repairs to the maintenance of the waterways, banks and tow paths, as well as whether the property has been affected by flooding in the past

Question 15

Commons search

Answer 15

Where property is adjacent to open land. To make sure the property is not protected as common land or a town and village green as this may affect the current enjoyment of land or intended use/development of land. Buyer’s solicitor should raise optional enquiry.

Question 16

Railways

Answer 16

A buyer of land adjoining a railway line will want to know whether there are any obligations to maintain the boundary features separating the property from the railway line and whether there are any restrictions on carrying out building work next to the line. Raise additional pre-contract enquiries of the seller.

Question 17

Highways - This will be via letter

Answer 17

Ask them to confirm that the public roads affording access to the property directly abut the property. This is to ensure that there are no gaps between the public highway and the boundary of the property. This is important because if the property does not directly abut the public highway the buyer will need an easement over any private roads in order to access the property.
To establish whether verges and pavements are publicly maintainable.

Question 18

Unregistered land searches

Answer 18

An Index Map Search (‘SIM’) and a Land Charges Department search against the seller and previous estate owners - to see if certain types of incumbrance have been protected by registration against the relevant estate

Question 19

Company search

Answer 19

If the seller is a company. Will confirm whether the seller has the capacity to enter into the contract, confirm the identity of the current officers of the company and to see if there are any fixed or floating charges secured on the property that will need to be discharged on completion

Question 20

Bankruptcy search - Buyer

Answer 20

When the buyer is an individual purchasing with the aid of a mortgage then you’d do a bankruptcy search.

Question 21

Bankruptcy search - Seller

Answer 21

Only necessary when the title is unregistered

Question 22

When is an official search of whole appropriate?

Answer 22

If it’s a purchase of whole

Question 23

If the client is buying next to undeveloped land and is concerned as to the possibility of development on the neighbouring land

Answer 23

Pre-contract enquiries of the seller would be appropriate as the seller should have personal knowledge of any recent planning proposals relating to the adjoining land. It would also be prudent to undertake an optional enquiry of the local authority (CON290) as to whether the land which abuts the property is registered as a local common or village green which may preclude further development on such land

Question 24

K15 land search

Answer 24

Land charges search against the seller for the whole period of ownership