Due diligence 2 - pre contract searches and enquires

Question 1

Survey/personal inspection - when?

Answer 1

All transactions but also when buyer has concerns about
- state of the property
- intends to carry out alterations after purchase = full structural survey
- less expensive alternative for homebuyers = valuation and survey (less detailed than structural but has advice on necessary repairs and maintenance)

Question 2

Local search - LLC1 provides details of what?

Answer 2

• Details of any financial charges
• restrictions on land imposed by public authorities under statute - e.g. planning consents, tree preservation orders, conservation area designation orders

Question 3

Local search - CON29 - when and what info is revealed?

Answer 3

All transactions
- Planning permissions
- Restrictions on permitted development (art 4 direction)
- whether land has been designated as contimated land
- Questions of liability for road repair

Question 4

When to use CON29O - optional enquiries?

Answer 4

• If the attraction of a particular house is the view across a field - should make enquiries to see if there is any proposed development on that field
• covers diverse matters - environmental and pollution notices and rights over common land

Question 5

(Always) Water and drainage search purpose and what it reveals

Answer 5

• why?
  To check Liability for the costs of drain and sewage repairs
• whether drains/sewers are adopted
• Reveals
  whether/not the property is connected to a public sewer for both foul and surface water drainage and if property is connected to public water supply

Question 6

After enquiry has been raised w/ local authority on form CON29 and replies indicate the property has not been designated as contaminated land and no remediation notice has been served - what should you do next?

Answer 6

carry out a desk-top environmental risk assessment (‘environmental search’) because an environmental search will identify if the property is at risk of contamination.

Question 7

The entry shows that the property is subject to a mining reservation and exception - what should solicitor do next?

Answer 7

1. conduct a search with the Coal Authority on Form CON29M
   * reveals if the property is in an area where mining has taken place in the past or is likely to take place in the future,
   * the existence of underground workings, which may cause problems with subsidence
   * and whether compensation for subsidence damage has been paid in the past or any claim is pending.
2. also conduct an Index Map search
   * to check that the mines and minerals are not registered under a separate title
3. advise the client to ask their surveyor to check for signs of subsidence at the property

Question 8

If the results of CON29 search shows that no building regs consent was obtained

Answer 8

there is a possibility that the building is not structurally sound and so an inspection should be carried out by a building surveyor and a regularisation certificate obtained.

Question 9

If search reveals TPO - what advice should be given to client (if they plan on removing the tree subject to it)?

Answer 9

Not to remove the tree as the TPO indicates the tree must to be lopped or felled without permission

Question 10

What are all the essential searches

Answer 10

• survey
• personal inspection
• pre contract enquiries of the seller
• search of the local land charges register (LLC1)
• Enquiries of the local authority (CON29) > Optional enquiries for further (CON29O)
• flood search
• water and drainage search
• environmental search

Question 11

Railways search

Answer 11

• when: property adjoins a railway line
• purpose/ what it reveals: to establish liability for boundary maintenance and/or restrictions on use
• sent to: network rail