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#16679 - Pre Contract Searches - Property Law and Practice

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PRE-CONTRACT SEARCHES

Searches should be made because:

  1. Principle of caveat emptor

  2. Seller only has a limited duty of disclosure

  3. Buyer’s solicitor should check for incumbrances and the effect on clients plans, value and resale

Search Form/where? When? Why?
Local Land Charges Register LLC1 Always

Reveals many things which the buyer should be advised on and consider how it will affect the buyer’s proposed use.

If planning permission is revealed, then the seller should be required to produce copies. Where financial charges are revealed, the seller will be requested to discharge these prior to completion.

Local authority CON29/ CON29O Always They will help build up a complete picture of the property and may influence his decision as to whether or not to proceed with the purchase.
Pre-contract enquiries of the seller Residential: SPIF (or SLIF for leasehold) Always

Elicit information from the seller, mainly relating to the physical aspects of the property, which he is not bound by law to disclose

E.g. whether there has been change in use of the property

Commercial: CPSE
Water and drainage The water company serving the property Always If the property does not drain into a public sewer, the buyer will be liable for costs of maintaining. If there is a public sewer, their consent will be needed for development.
Environmental Professional search provider [Desktop] always required Clean up liabilities, dangers of contamination and decision whether to buy.
Personal Inspection Buyer Always Look for boundaries, evidence of easements, existence of other occupiers, and discrepancy in fixtures and fittings
Chancel repair ChancelCheck When in the vicinity of a medieval church Because you may be liable to contribute towards the repair of the chancel
Company Against Registered No. at Companies House When the seller is a company Check if the company exists, if it owns the land, if it has the power to buy and sell the land, any floating and/or fixed charges (non-crystallisation) and financial position (walk away if insolvent because there could be a significant delay)
Flood Environment Agency Environment-agency.gov.uk When near river, costal or surface water One in six homes in England are at risk from flooding and in recent years the number of flooding incidents has risen. The Law Society notes that a solicitor should discuss with client.
Mining

CON29M

NLIS (blanket search)

When in a tin mining area – check postcode online. Reveal presence of underground work which could cause subsidence damage
Common land E22. Commons Registration Search on CON29O Abuts a village green, or where a verge strip separates it from a public road May not be developed and may be subject to third party rights e.g. rights of way. May also attract travellers.
Rivers/ streams/ canals Environment Agency (River) Canal & River Trust (Canal) It next to a river Check if there are any obligations to contribute towards maintenance of river banks, tow paths or flood defences
Railways Seller and personal inspection If the property adjoins an existing...
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