Welcome to BuyAssociation.co.uk

The importance of searches - Helen Woodend, Chebsey & Co

The importance of searches

I am asked, from time to time, on the reason behind the searches that are undertaken prior to exchange of contracts during the course of a house purchase. So let’s start at the beginning, explaining what the ‘usual’ searches are and what is revealed by the result.

If you are intending to take out a mortgage over the property that you are buying then your lender will require that a Local Land Charges Search is undertaken and enquiries are made of the Local Authority. They will also require that the standard water and drainage enquiries be raised. In addition it will also be necessary to carry any other searches which may be appropriate to the particular property, taking into account its locality and other features.

Local Land Charges Search
A local authority is bound by statute to keep a register of certain matters. This register is open to public inspection and the search result will reveal whether there are, and if so how many, entries. Such entries might include the following:

- Planning permissions granted
- Any restrictions on permitted development
- Tree preservation orders
- Some compulsory purchase orders
- Financial charges (e.g. for roadworks)

To take an example, if any financial charges are revealed then the seller should be asked to discharge these prior to completion or to reduce the purchase price. If not then the buyer will buy subject to these charges and they will be binding on them.

Enquiries of the Local Authority
A local authority will keep huge quantities of information which extend beyond the confines of the local land charges register. The information contained in the result will help a buyer to build up a better picture of the property that they are buying. Examples of some matters which may be revealed by the search are:

- Planning permissions made (this will include those that are refused and withdrawn)
- Enforcement notices and whether they have been complied with
- Proposed enforcement notices, tree preservation orders and compulsory purchase orders
- Any notices served in relation to the remediation of contaminated land
- Whether the roads serving the property are maintained at the public expense

Again any buyer would be bound by any matters revealed once the property is purchased and as such it is important to have all this information before committing to an exchange of contracts. For example, if roads are not maintained at public expense there may be no right for the buyer to use them to access the property and there may be a requirement on the buyer to contribute to the maintenance of the same.

Water and drainage enquiries
These enquiries will confirm if the property has foul and surface drainage to a public sewer; whether the sewers are adopted and if not if they will be; whether the property is connected to the public water supply and the location of any water mains within the boundaries of the property. The existence of a public water main within the boundaries of the property may restrict the future development of the property and as such this may be an important consideration when buying the property.

Environmental search
The public have become much more aware of environmental issues in recent years. Solicitors must consider whether contamination is an issue in every transaction and advise their clients of any potential liabilities. The most important of these being the potential expense of any clean-up liability.

To take an extract from the Law Society’s Warning Card:

“Compliance can be costly, and may result in expenditure which could exceed the value of the property.

Liability falls primarily on those who "cause or knowingly permit" contamination (a Class A person). If the authority cannot identify a Class A person, liability falls on a Class B person, the current owner, or occupier of the land.”

Therefore the liability to clean up a site that is identified as contaminated land could fall to the individual owner of the property.

The search result will identify any areas that should be a cause for concern, therefore allowing the buyer to make more specific enquires before committing to a purchase.

Chancel check report
Following the decision in Aston Cantlow v. Wallbank potential repair liability hit the headlines. The cost of repairing the chancel of a parish church is usually met by the church. However, in some rare instances, the property owner may be liable for the costs of such a repair. A chancel check report is a low cost option that identifies whether a property is located in an area with a potential chancel repair liability. If the property is identified as being located in such an area then further enquiries can be made and if necessary appropriate insurance can be taken out.

Flooding search
Again this type of search has become more popular due to the floods that have affected the UK in recent years. It is estimated that some two million homes and businesses are at risk of flooding in England and Wales. A search can be undertaken that provides further information on the risks of flooding at a property and from what sources. As a property owner you would be responsible for flood protection, preparation and insurance. The result of this search allows the necessary enquiries to take place before exchange of contracts, for example, to check that insurance at a reasonable cost can be obtained, and if there is any history of past flooding at the property.

So there you go, the usual searches and what they reveal and some of the reasons why we would always recommend that searches are undertaken in every property purchase, whether or not you are taking out a mortgage. After all, you wouldn’t buy a car without test driving it first!

Helen Woodend

Helen Woodend is a Solicitor at Chebsey & Co and can be contacted at 51 London End, Beaconsfield, HP9 2HW www.chebsey.com Tel; 01494 670440 Fax; 01494 670276

More pages

Page 1: The importance of searches

UK property insurance from intasure - Click here for great deals and up to 40% risk related discount on UK & overseas insurance

Advertise Your English Rental Property simple, effective and affordable marketing online!

All you need for a beautiful bathroom - at affordable prices

Calculate how much you can earn - rent out your UK holiday home here

UK Investment property from just £34,500 High-quality student rooms in an emerging market with 10% net yield guaranteed

Discounted hotel rooms in the UK - click here for Laterooms special offers

Holiday homes to rent - across the UK & Ireland