Pre contract searches and enquiries Flashcards Preview

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Flashcards in Pre contract searches and enquiries Deck (21):

What is the significance of caveat emptor?

'buyer beware' -buyer's solicitor must examine search results before allowing a buyer to exchange contracts!


What are the 7 searches and enquiries that will always be carried out?

1. Structural survey and physical inspection

2. Pre-contract enquiries of the seller

3. Official search of the Register of Local Land Charges (LLC1)

4.Local Authority Enquiries (CON 29 and CON 29O)

5. Commercial drainage and water search

6.Desktop environmental search

7. Chancel repair search


What are the 4 searches and enquiries that may sometimes be carried out?

1. CON29O (rights in common)

2. Company search

3. Search of Index Map

4. Coal mining search


What is a structural survey and inspection? Who is it done by?

Buyer (not solicitor) instructs surveyor to inspect the property.

Three types of surveys available:

1. valuation report- normally made on behalf of lender to ensure accuracy of valuation for loan.

2. homebuyer's survey- common residential transactions-which includes valuation of home and the general condition of property.

3. Building survey- most thorough and expensive, detailed examination of property. It is essential for old buildings or where the buyer is contributing a large proportion to the cost of the property.


What would be some examples of Pre-contractual enquiries to the seller?

The questions contained in the CPSE.1- generally used for commercial transactions.

It asks the seller directly matters such as:

Whether there are any third party unregistered interests on the land.

Whether seller has breached any restrictive covenants.


What is the CPSE.1?

They are standard set of enquiries used for commercial transactions which form a part of the pre contractual enquiries posed to the seller.


What is the penalty for incorrect responses to the CPSE.1?

Misrepresentation will result in penalties.

Concealing defects can also result in penalties Gordon v Selico.


What is involved in a LLC1 search?

Is it always conducted?

Always conducted.

It is an official search of the Register of Local Land Charges, which reveals things like:

Planning Permissions

Restrictions against permitted development

Enforcement notices

Tree preservations orders

Smoke control orders


What is involved in a Local Authority Enquiry?

Is it always conducted?

Includes CON29R (always conducted) and CON29O (optional):

CON29R contains list of standard enquiries including:

-planning matters which overlap with LLC1 form

-and building regulations information.

-whether a road will be adopted and whether there are any major road proposals within 200 metres

-whether a contaminated land notice has been served

(generally, no is a good reply on the forms, except for issues regarding planning consents, where you want to see a yes!'

Typically costs around 150 pounds.


What does a CON29O search include?

Is it always conducted?

Optional search.

It includes optional enquiries in a pre printed form asking about:

Public footpaths

Town and village greens

Common land

'tell buyer that each extra search will incur an additional fee'

Commons registration act


What is involved in a commercial drainage and water search?

Is it always conducted?

Always conducted.

Search looks at whether foul and surface water from the property drains to a public sewer and if property is connected to a main water supply.

CON29DW used for residential properties.

Although these can be used for commericial properties, the 10 water companies , in England and Wales have now adopted a standard commercial drainage and water search.


What is involved in a desktop environmental search?

Is it always conducted?

Always conducted.

Need to ensure site is free from contamination.

If so, buyer may be liable.

Need to confirm if site has ever been used for contaminative use.

If flood or subsistence risk is likely and if land uses are within a 250 m radius of the property.

Potential contamination will usually be followed up with Phase I and Phase II searches (expensive)


What is involved in a chancel repair search?

Is it always conducted?

Always conducted.

Use this search to confirm that the
buyer will not be responsible for any payment for chancel repairs relating to a local church


What is involved in a Company search?

Is it always conducted.

What form does it fall under?

Conducted only if seller is a company.

Falls under CON29O

If seller is a co. check companies house, it enables the solicitor to confirm seller's company number and solvency status (including any fixed or floating charges over the company's assets including its properties).


What is involved in a Search of Index Map? Is it always conducted?

What form does the search fall under?

Not always conducted.

Falls under CON29O

Reveals whether any third party titles (leaseholds) are registered against the title to the property.

Also reveals identify of owner of neighbouring land.


What is involved in a coal mining search?

What form does the search fall under?

Is it always conducted?

Not always conducted.


Where property is close to former coal mining site, this search reveals whether any past coal mining took place, and any proposed mining under the property.

If there was mining done under the property, there may be risk of subsidence.

If there is a risk, may want to ask if there was any previous compensation paid to owner of property.


What is a highway authorities search? and is it always conducted?

Not always conducted.

It checks the exact boundaries of abutting highways.


What is a phase 1 environmental survey and is it always conducted?

Not always conducted.

It is used if there is a higher risk of environmental contamination.


What is a waterways search and is it always necessary?

Not always necessary and used if river passes through property.


What does the Common Registration Act search involve?

Is it compulsory?

What form does it fall under?

Usually in rural or non built up areas, area of property may be affected by right of common (local rights).

It is not compulsory.

Falls under CON29O


As a solicitor representing a buyer, what are the two key things you need to keep in mind when conducting planning issue searches?

What has the seller previously altered and what is the seller using the property for now?

What alterations does the buyer want to make and what does he want to use the property for in the future?