W5 Pre-Completion Searches Flashcards
Which one of the following is the correct priority period provided by an OS1 search?
(a) 15 days from the OS1 search result.
(b) 15 working days from the OS1 search result.
(c) 30 working days from the OS1 search result.
(d) 2 months from the OS1 search result.
(e) 30 days from the OS1 search result.
Answer; (c)
It is a common mistake to say the priority period of an OS1 is 30 days. It is actually 30 working days.
15 working days is the protection period given by a K15 Central Land Charges search.
2 months is the time period for first registration at the Land Registry (post completion of the purchase of unregistered land).
Two individuals are selling Unit 20, Crayford Business Park (“the Property”) to a company, which is buying the Property for cash (ie without the need for a mortgage). The Property is registered at the Land Registry. You act for the buyer. Which one of the following sets out the pre-completion searches you need to carry out?
(a) OS1 search only.
(b) Central Land Charges search K15 on the buyer and OS1 search.
(c) Company search on the buyer and OS1 search.
(d) Bankruptcy search K16 on the seller, Company search on the buyer and OS1 search.
(e) Bankruptcy search K16 on the seller and OS1 search.
Answer; (a)
This is a registered property, and your client is purchasing the whole of the title. Therefore a Form OS1 search will always be required.
A bankruptcy search is not required to be taken against any individual seller of registered land. (Any bankruptcy would appear on the register of title, and therefore on the OS1 search result).
As this is no unregistered land, no Central Land Charges search (K15) is required either. K15 searches are only relevant for unregistered land and would be carried out against the seller not the buyer to check for adverse entries and to give a protection period.
As no buyer’s lender is involved, there are no solvency searches needed against the buyer.
An individual seller is selling the whole of a registered freehold residential property to an individual buyer, who is buying the Property with the aid of a mortgage. You act for the buyer and their lender. Which one of the following statements is correct on these facts?
(A) You need to carry out a Form K16 bankruptcy search in respect of the buyer.
(b) You do not need to carry out a solvency search in respect of the buyer.
(c) You need to carry out a Form K16 bankruptcy search in respect of the seller.
(d) Solvency searches are carried out at the Land Registry.
Answer (a)
The lender’s solicitors carry out solvency searches against the buyer. On this scenario, you act for the buyer’s lender so you must carry the appropriate solvency search against the buyer pre-completion. As the buyer is an individual, the appropriate solvency search is a K16 bankruptcy search.
If the seller is bankrupt it will appear on the OS1 search result and so no bankruptcy search is required in respect of the seller.
Companies House searches (in respect of companies) are carried out at Companies House to check solvency pre-completion. K16 bankruptcy searches or K15 CLC searches which include bankruptcy are both carried out at the Central Land Charges Department. None of the solvency searches are carried out at the Land Registry.
