Pre contract searches planning Flashcards
(87 cards)
What is the purpose of a report on title?
To inform the client about the solicitor’s investigation of title, search results, and replies to inquiries.
What does ‘caveat emptor’ mean in the context of property transactions?
Buyer beware; once contracts are exchanged, the buyer has no means of objecting to issues that arise.
What are the typical contents of a report on title?
- Interpretation
- Scope of the review and limitation of liability
- Executive summary
- Purchase price and other contract terms
- The Property
- Matters benefiting the Property
- Matters burdening the Property
- Search results
- Replies to enquiries
- Planning and building regulations
- Insurance
- Stamp Duty Land Tax
- Conclusion
What must a report on title include regarding limitations on the solicitor’s liability?
It should state that the report is based on reviewing title documents, search results, and replies to inquiries.
What is CCS 6.4?
A requirement for solicitors to ensure clients are made aware of all material information relevant to the matter.
What does CCS 8.6 require from solicitors?
To provide clients with information in an understandable way.
What does a buyer’s solicitor typically do before the exchange of contracts?
Investigates title and raises pre-contract searches and enquiries.
What are standard searches typically conducted by a buyer’s solicitor?
- Local search
- Drainage and water enquiries
- Desktop environmental search
- Chancel repair liability
What is the purpose of a local search?
To cover matters relating to the property within the knowledge of the local authority.
What does the Local Land Charges Search (LLC1) reveal?
- Planning permissions granted
- Planning enforcement or stop notices
- Tree preservation orders
- Conservation areas
- Listed building status
What is the function of a drainage and water search?
To check matters such as whether foul and surface water drain to a public sewer.
What is a desktop environmental search used for?
To indicate if the property has been used for potentially contaminative land uses and assess flood risk.
What is chancel repair liability?
Responsibility for the repair of the church roof shared between the church and parishioners in certain parishes.
What does a highways search determine?
Whether roads included in the search are adopted highways maintained by the local authority.
What are optional searches that may be conducted?
- CON29O (including commons registration search)
- Highways search
- Coal mining search
- Flood search
What is a Phase I Environmental Survey?
A more detailed environmental search that includes a site inspection.
What is the role of pre-contract enquiries?
To gather information from the seller at the beginning of the transaction.
What are the standard forms for residential property pre-contract enquiries?
- Property information form (Form TA6)
- Fittings and contents form (Form TA10)
What does the phrase ‘not so far as the seller is aware’ imply?
It does not absolve the seller from responsibility if the answer should have been ‘yes’.
What is an index map search?
A search showing the extent of registered titles and unregistered land within the area searched.
What is a bankruptcy search (K16)?
A search carried out against the seller if the transaction is not at full market value.
What is the purpose of a companies search?
To verify that the seller company exists and has not gone into liquidation or been dissolved.
What is usually carried out against the seller if the transaction is not at full market value?
A search at the Central Land Charges Registry
This search is relevant when assessing the seller’s obligations.
What should be checked if the seller is a company?
A company search to confirm existence and liquidation status
This also reveals security interests held by the company.