Upon receipt of all search results the conveyancing solicitor should carefully look and determine if the information provided is in conformity with the client’s instructions. Replies that are not clear should be rechecked with the concerned personnel (including the seller in the case of pre-contract searches) and a satisfactory answer should be sought. None of these reports should be considered in isolation, and each of them should be correlated to the other considering the title investigation, draft contract, and any other particular situation related to the transaction. This is very important as the solicitor can be made liable for negligence if the buyer suffers losses as a result of such unsatisfactory answers.
Replies that are not satisfactory should be referred to the client for further instructions. In any case, the contract should not be given the go ahead unless all search results are satisfactory. The client should be sent a summary of all the information received. In the course of analysing each of these search results, the following scenarios shall be commonly encountered:
Property built within the Last 10 years
- It is important to check for NHBC documents that provide information on insurance cover against structural defects. This should ideally be revealed when the pre-contract enquiries are made.
- Copies of planning permission should be provided. This should ideally be revealed through the pre-contract enquiries, or during LLC1 and CON29R.
- The planning permission should be checked to ensure that conditions attached to the planning permission have been complied with. This is revealed by CON29R.
- The conveyancer should be provided with a copy of the building regulation consent. This is revealed by pre-contract enquiries. Proceedings in instances of breach would be revealed by form CON29R.
- It should be checked if roads and drains are adopted. This is revealed by CON29DW.
- When roads are not adopted, the conveyancer should check if easements exist for access to the property. This is revealed by title documents.
When no such agreement or bond exists, the solicitor can advise his client to consider negotiating the final price for the property until roads and services are adopted.
Access to property or service to property across neighbouring land
- The title should be checked if easements of access etc. are available on the property. If such easements do not exist, the conveyancing solicitor should check if they are implied or presumed by the long user. These are revealed during pre-contract enquiries earlier made by the seller. Is it possible for the seller to arrange such a deed from neighbouring owners?
- What are the arrangements made for maintenance and repair? Are these arrangements expressly implied in the title documents, or are there informal arrangements?
If the property was not recently developed, it is highly unlikely that it may have been adopted by the local authority.
Occupiers
- A detail of occupiers is revealed by pre-contract enquiries of the seller.
- Do the occupiers claim an equitable interest or a tenancy?
- If such a claim exists, are they ready to sign an agreement to give up these rights or surrender the tenancy and leave the premise on completion.
- With respect to the occupancy rights of the non-owning spouse, have these rights been registered? Irrespective of the fact that these rights have been registered, the spouse would have to agree to leave and remove the registration before completion.
Extensions or alteration carried by previous owner
- These details are revealed by pre-contract enquiries of the seller.
- Was planning required for past work carried out on the property, and was it obtained
- Were all works carried within the GPDO or were planning permissions obtained?
- Have covenants on the title been complied with?
- If consent was required for the work, were they obtained? If they were not can it be obtained now, or can insurance be obtained to cover this?
- Are all building regulation consents in place?
- Did the survey include checking the work to ensure that it was carried out properly and to a proper standard?
Photo courtesy: cameronparkins
