Range and purpose of making searches and raising enquiries-FS Flashcards
Who is responsible for carrying out property searches in a conveyancing transaction?
The buyer’s solicitor is responsible for conducting searches to uncover any problems with the property.
What legal principle underpins the need for property searches?
The doctrine of caveat emptor (“buyer beware”)—it places the burden on the buyer to discover any issues with the property.
What is the seller’s obligation in disclosing property issues?
The seller must give honest answers to any questions asked, but is not obliged to disclose all information proactively.
What are conveyancing searches?
They are inquiries made by the buyer’s solicitor to obtain detailed information about the property prior to purchase.
What is the solicitor’s role in recommending searches?
The solicitor should advise on appropriate searches and highlight risks, but the client decides which searches to proceed with.
What must a solicitor do if a client refuses to carry out a recommended search?
The solicitor should document the advice in writing and confirm that the client accepts the risks of not proceeding.
What is an example of a commonly recommended search during property purchase?
A building survey, which checks the property’s structural condition, is commonly advised.
What determines the range and depth of searches conducted?
Searches must be proportionate and reasonable based on the nature of the property and the client’s instructions.
What is the purpose of a Local Land Charges Register search?
To identify any legal restrictions or obligations (e.g., financial charges or planning limitations) registered by the local authority that affect a property.
Which form is used to conduct a Local Land Charges search?
The LLC1 form is used to request a Local Land Charges search.
What kind of response does the LLC1 search generate?
A certificate signed by the council or Land Registry, accompanied by a schedule summarizing the relevant charges affecting the property.
What is a Tree Preservation Order (TPO) and why is it relevant to buyers?
A TPO prevents certain trees from being cut down or altered without local authority permission. It can impact development plans.
What types of development restrictions can be revealed by a Local Land Charges search?
Restrictions on permitted development rights, such as limits on height, size, or location of buildings, or specific development control zones.
How should a solicitor proceed if significant development restrictions are revealed?
The solicitor should advise the client, and with the client’s authority, may conduct further investigations or inquiries.
How can historical planning permissions affect a property’s use?
If a building is listed or in a conservation area, modifications may require special permissions, limiting the client’s ability to alter or develop the property.
Give an example of a building that would be affected by restrictions due to historical value.
A property like the Manchester Art Gallery, as a listed building, would be subject to strict controls on alterations and redevelopment.
What is the purpose of raising contract inquiries with the seller in a property transaction?
To obtain information about the property that the seller is not legally required to disclose, helping the buyer assess risk and decide whether to proceed.
What is the standardised format used for raising questions to the seller’s solicitor in commercial property transactions?
The Commercial Property Standard Enquiries (CPSE) is the recognised list used to ask relevant questions to the seller’s solicitor.
Is a seller legally obliged to answer inquiries raised by the buyer’s solicitor?
No, the seller can refuse to answer, but this may raise red flags for the buyer and could influence their decision to proceed.
What types of issues are typically included in contract inquiries?
Inquiries often focus on issues like existing disputes, neighbour problems, occupancy status, and any past alterations or change of use of the property.
Why is it important to cross-check the seller’s answers to inquiries?
To verify the accuracy of the responses using other sources such as local authority searches and building surveys, ensuring a consistent picture of the property.
What should the buyer’s solicitor do after receiving responses to inquiries?
They should discuss the findings with the client, advise on any risks or missing information, and recommend whether to proceed or investigate further.
What is a key risk when a seller refuses to respond to standard inquiries?
It may indicate potential legal or structural issues with the property and may discourage the buyer from continuing with the transaction.
How do contract inquiries support the buyer’s due diligence obligations?
They help the buyer fulfill their duty to investigate, under the principle of caveat emptor (buyer beware), by uncovering hidden or undisclosed issues.
