#16680 - Official Copies Analysis - Property Law and Practice

OFFICIAL COPIES ANALYSIS

Requisitions to the Seller

1. Property Register, Entry No. 2:

   • Please can you identify the land or parties who have the benefit of the exception and reservation referred to in this entry?

   • Please indicate which of the services mentioned in this entry are currently connected to the Property.

   • Please provide details of expenditure incurred by the Seller or any predecessor in title in connection with the maintenance of such services.

2. Proprietorship Register, Entry No. 2:

• Please provide written confirmation from Santander Bank PLC of its consent to the proposed sale, such information to be provided to the Buyer on or before exchange of contracts.

3. Charges Register, Entries 1, 2 and 3:

• Please can you identify the land or parties who have the benefit of the covenants referred to in these entry numbers; whether the Seller has complied with such covenants; and whether the Seller is aware of any attempts to enforce such covenants.

4. Charges Register, Entry No. 1:

   • Please provide details of the covenants referred to in this entry.

   • If unable to provide such information, please confirm that, on or before completion, the Seller will provide, at its cost, a restrictive covenant indemnity insurance policy in respect of such covenants, in a form to be approved by the Buyer.

5. Charges Register, Entry No. 2, covenant (a):

   • Please provide copies of any consents allowing the Property to be used as a shop.

6. Charges Register, Entry 2, covenant (b):

• Has the Seller has carried out any alterations to the Property in breach of this covenant?

• If so, please provide copies of any consents required in accordance with this covenant, in particular, please provide copies of consents allowing signage to be placed on the Property.

7. Charges Register, Entry No. 2, covenant (c):

• Please provide details of expenditure incurred by the Seller, and/or anticipated expenditure within the next twelve months, in connection with the maintenance of the north-western and south-western boundaries of the Property?

8. Charges Register, Entries 4 and 5:

• Please confirm that the legal charge in favour of Santander Bank PLC will be discharged on or before completion and that you will provide an undertaking to that extent in the Law Society’s recommended format.

9. Charges Register, Entry 6:

• Please provide details of the Unilateral Notice referred to in this entry.

• Please confirm that you will arrange for the removal of this Notice, and that such removal will be effected on or before exchange of contracts.

Informing the Buyer

1. Charges Register, Entry No. 1:

“Restriction on your use of the land however, as we don’t have the original or a copy of the documents, we do not know what it restricts. We would advise you to accept an insurance policy, arranged and paid for by [the seller], which would insure against someone bringing a claim against you for breaching it.”

2. Charges Register, Entry No. 2, covenant (a):

“There is an absolute restriction meaning that you cannot …. As this is your intended use, you would be in breach which would mean that you could be sued which would severely limit your future letting potential. This is regardless of the fact that [the seller] is currently breaching this restriction. We have asked [the seller] if he gained consent to do this and, if so, you might be able to use this consent or get consent similarly, however if not, there are a number of options that you could take:

1. You could trace the person who put the restriction on and ask them to release you from the restriction, however they may not agree and if they do they are likely to ask for money to do this.

2. You could obtain insurance to cover the cost if someone sues you for breaching it. As this is quite an old restriction, this will likely be possible at a relatively low cost. We could negotiate with [the seller] to pay this given that he is currently in breach himself.

3. There is the possibility of applying to the Lands Tribunal which is a court where the restriction could be removed, however, this process is costly, slow and uncertain of whether it would be successful.

4. There is always the potential to do nothing, however this would be dangerous as you would risk being sued without any protection.

“We would recommend going for the insurance option, given that it would be likely easy to obtain and would be arranged and paid for by [the seller]. It you would be happy to accept this, we would be happy to negotiate with [the seller] on this matter.”

3. Charges Register, Entry No. 2, covenant (b):

There is a [qualified] restriction meaning that you cannot …. Without the consent of [the person], who created the restriction. As it is your intention to [do X], this would breach the restriction if you had not gained prior consent. In that case you could be sued by [the person] which could severely limit your future letting potential. It is possible that [the seller] has [done X] and has gained consent, so we have asked [the seller] if he gained consent to do this and, if so, you might be able to use this consent or get consent similarly, however if not, there are a number of options that you could take:

1. You could trace the person who put the restriction on and ask them to release you from the restriction, however they may not agree and if they do they are likely to ask for money to do this.

2. You could obtain insurance to cover the cost if someone sues you for breaching it. As this is quite an old restriction, this will likely be possible at a relatively low cost.

3. There is the possibility of applying...