w3 Flashcards
What is the purpose of a report on title?
A report on title is prepared by the buyer’s solicitor before the exchange of contracts. It summarizes the material facts, identifies any issues, and discusses possible solutions. The report also outlines the investigations conducted by the solicitor and states any limitations to their liability.
What does a report on title include?
A report on title will identify material facts about the property, highlight any issues and their implications, and discuss possible solutions. It will also summarize the solicitor’s findings in plain English. Typical contents may include the interpretation, scope of the review, executive summary, purchase price and contract terms, matters benefiting and burdening the property, search results, replies to enquiries, and planning and building regulations.
What should a report on title state regarding the solicitor’s liability?
A report on title should set out limitations to the solicitor’s liability. For example, it may state that the solicitor does not express an opinion on the commerciality of the transaction, advise on the value of the property, or inspect the physical condition of the property. The report may recommend arranging a survey of the property.
Why is it important for a report on title to be in language appropriate to the client’s requirements?
The report on title needs to be in language that the client can understand. If necessary, the solicitor should talk the client through the report to ensure comprehension. This helps the solicitor meet the requirements of providing information fully and in a way that the client can understand, as stated in CCS 6, 4, and 8. It also protects the solicitor against claims of professional negligence for matters not brought to the client’s attention.
What are some examples of standard searches that are usually raised in every transaction?
Standard searches that are usually raised in every transaction include a local search, drainage and water enquiries, desktop environmental search, and chancel repair liability search. These searches provide information about planning consents, building regulations, roads, public rights of way, drainage, water supply, environmental factors, and potential liabilities related to chancel repairs.
When are optional searches typically raised in a property transaction?
Optional searches may be appropriate in certain circumstances, depending on the type of title or seller. For example, title and seller searches may be necessary for specific situations. Additional enquiries are usually raised as the matter progresses. Searches are usually submitted as early as possible, but some can take several weeks. Some firms may require money on account before raising searches.
What does a local search cover and what information does it provide?
A local search covers matters relating to the property within the knowledge/records of the local authority. It includes optional enquiries (Form CON29O) and standard enquiries of the local authority (Form CON29). The local search reveals information about planning consents, building regulations, roads, public rights of way, environmental notices, and other relevant factors. The Local Land Charges Search (LLC1) is a search of the local authority’s register of local land charges, which provides information on planning permissions, enforcement notices, and other charges affecting the property.
What does a drainage and water search involve?
A drainage and water search deals with questions specific to drainage and water issues related to the property. It checks whether foul and surface water from the property drain to a public sewer and whether the property is connected to a mains water supply. The relevant water service company for the area provides replies to Form CON29DW enquiries for residential properties or Commercial DW enquiries for commercial properties.
What is a desktop environmental search and why is it important?
A desktop environmental search is a detailed search that goes beyond the information provided in a standard local search. It includes a site inspection and provides information on potential contamination, flooding, subsidence, and nearby industrial land uses. This search is important because property owners may be liable for the costs of cleaning up contaminated land, even if they were not responsible for the contamination.
What is chancel repair liability and how is it addressed in a property transaction?
Chancel repair liability refers to the responsibility for repairing the roof of a pre-Reformation church shared between the church and the parishioners. A chancel repair search is usually carried out as standard, and if there is potential liability, indemnity insurance can be obtained to cover the risk.
Why is it important to raise standard pre-contract enquiries and searches in every transaction?
Standard pre-contract enquiries and searches are raised in every transaction to ensure that the buyer’s solicitor obtains as much information as possible about the property before the buyer becomes contractually committed at the point of exchange. These enquiries and searches help identify any issues or potential liabilities associated with the property and protect the buyer’s interests.
How are searches typically ordered by solicitors nowadays?
Most solicitors order searches via an online portal provided by the National Land Information Service (NLIS). The solicitor inputs the property address and can sketch the boundaries on an Ordnance Survey map. The NLIS acts as an intermediary between solicitors and various institutions. Some search providers include Searchflow, Thames Water Property Searches, Big Property Data, and Index.
What information does a local search (CON29) provide?
A local search (CON29) provides replies from the local authority based on its records regarding various matters such as planning and building regulations, roads, and public rights of way. It reveals information about planning consents, refusals, completion notices, environmental notices, and more. The local land charges search (LLC1) is a search of the local authority’s register of local land charges, which includes information on planning permissions, enforcement notices, and financial charges affecting the property.
What are some optional searches that may be appropriate in certain circumstances?
Optional searches that may be appropriate in certain circumstances include searches related to title and seller, such as land charges search, index map search, and companies search. Other optional searches depend on specific factors, such as CON29O for commons registration search, highways search, coal mining search, Cheshire Salt search, tin/clay/limestone search, phase I/phase II survey, flood search, utility providers search, and railways and waterways searches.
What are the standard replies to enquiries in commercial property transactions?
The standard replies to enquiries in commercial property transactions are known as CPSE1 (Commercial Property Standard Enquiries).
Are there additional forms for different transactions in commercial property?
Yes, there are additional CPSE forms (CPSE2, CPSE3, etc) for different transactions in commercial property.
What are the standard forms used in residential property transactions?
In residential property transactions, the standard forms used are the Property Information Form (Form TA6) and the Fittings and Contents Form (Form TA10).
What is the purpose of pre-contract enquiries in property transactions?
Pre-contract enquiries are used to gather information about the property from the seller. The replies rely on the seller being co-operative and truthful. A seller may decline to answer enquiries if they have no knowledge of the property, but they cannot deliberately mislead the buyer.
What action can be taken if a seller provides misleading information in response to enquiries?
A misleading statement by the seller can give rise to an action in misrepresentation. The seller cannot deliberately mislead the buyer by concealing physical defects or answering enquiries dishonestly.
What does the phrase ‘Not so far as the seller is aware’ mean in relation to answering enquiries?
The phrase ‘Not so far as the seller is aware’ does not absolve the seller of responsibility if the answer should have been ‘yes’. It means that the seller has made reasonable investigations in the matter.
What are additional enquiries and when are they typically raised?
Additional enquiries are typically raised by the buyer’s solicitor on specific issues that arise from the investigation of title, search results, or standard replies to enquiries. These enquiries help gather more information about the property.
How do searches relating to title/seller contribute to the investigation of a property?
Searches relating to title/seller provide important information about the property. For example, an index map search shows the extent of registered titles and unregistered land within the area searched. Central Land Charge Search reveals information about the seller and previous owners. These searches help build a complete picture of the property.
Why is it important to distinguish between searches relating to title/seller and other pre-contract searches?
It is helpful to keep searches relating to title/seller distinct as they form part of the investigation of title. These searches are no less important than other pre-contract searches, but it is useful to differentiate them in order to understand their role in the overall process.
What information does an index map search provide?
An index map search shows the extent of registered titles and unregistered land within the area searched. It does not show ownership, and official copies must be ordered if this information is required. The search reveals what registered title exists in the searched area.
What is the purpose of an index map search (SIM) in property transactions?
An index map search (SIM) is conducted in property transactions to determine the extent of registered titles and unregistered land within a specific area. It does not provide ownership information, but official copies can be ordered if needed.
What is the significance of a central land charge search (Form K15) in unregistered property transactions?
In unregistered property transactions, a central land charge search (Form K15) is carried out against the full names of the seller and all previous owners mentioned in the epitome of title. This search helps identify any charges or interests associated with the property.
When is a bankruptcy search (K16) typically carried out in property transactions?
A bankruptcy search (K16) is usually conducted against the seller in property transactions that are not at full market value. It is also performed when a buyer is taking a mortgage, although this is covered in Week 5 of the process.
Why is a company search important in property transactions involving a seller who is a company?
A company search is conducted to verify the existence of the company and ensure it has not gone into liquidation or been dissolved. It also reveals any security interests that the company has given.
What is the purpose of searches and enquiries in property transactions?
Searches and enquiries are used to gather important information about a property and its surroundings. They involve investigating third parties such as the local authority, utility providers, and the seller themselves. The goal is to build a comprehensive picture of the property and identify any potential issues.
Why is the local search considered one of the most important searches in property transactions?
The local search is crucial in every property transaction, whether residential or commercial. It combines various searches, including the local land charges search (LLC1) and local authority enquiries (CON29 and CON29O). The local search provides planning information, details about roads, conservation areas, and other important charges related to the property.
What does the local land charges search (LLC1) reveal in property transactions?
The local land charges search (LLC1) provides information about planning permissions, conservation areas, Tree Preservation Orders, and other planning-related matters. It also reveals miscellaneous charges, smoke control orders, and listed building charges. The LLC1 search helps assess the planning history and potential restrictions on the property.
What is the purpose of the CON29 enquiries in property transactions?
The CON29 enquiries are standard enquiries made to the local authority in property transactions. They cover various aspects such as planning permissions, building regulations approvals, roads, public rights of way, and contamination. The CON29 provides important information about the property and its surroundings.
What additional enquiries can be made using the CON29O form in property transactions?
The CON29O form allows for optional enquiries of the local authority. These enquiries can cover topics such as public footpaths, commons registration, road proposals by private bodies, and village green enquiries. Relevant additional enquiries should be raised based on the specific circumstances of the property transaction.
Why is it important to review the results of the local search and assess their implications?
Reviewing the results of the local search allows for the identification of any issues or unexpected information related to the property. For example, the absence of planning permission for recent works may require further action, or the property being in a conservation area may have implications for future development. It is important to report these findings to the client and suggest appropriate solutions.
What does the local land charges search reveal about planning permissions?
The local land charges search (LLC1) provides information about planning permissions that have been granted, refused, or applied for. It also indicates if the property is in a conservation area. Part 3 of the register contains details related to planning charges.
Why is the CON29 important in relation to building regulations?
The CON29 enquiries provide information about whether Building Regulations Approvals and Building Regulations Completion Certificates have been obtained for works carried out on the property. This helps ensure compliance with building regulations and provides assurance regarding the quality of construction.
What information does the CON29 provide about roads in property transactions?
The CON29 includes enquiries about roads adjacent to the property and whether they are adopted public highways. It also covers private rights of way and any current adoption plans. A separate highways search may be conducted to determine the exact boundary between private land and the highway.
What does the CON29 reveal about contamination in property transactions?
The CON29 informs whether the local authority has served a notice regarding contaminated land. This information is crucial for assessing potential environmental risks associated with the property. Additional enquiries and actions may be required based on the results of the CON29 and desktop environmental searches.
