Property searches
Property Searches are undertaken when a Property is being purchased or (re)mortgaged. In addition, if a Property is being sold via auction, the Seller’s solicitors carry out searches as part of the auction pack (although the successful buyer will usually be required to reimburse the Seller for the cost of the searches in the auction pack.)
The usual searches carried out are the local search, drainage and water search, envirosearch and chancel.
Local search
It is prepared by the local authority where the Property is located and each local authority has a different turnaround time, which can vary from a week to two months. This is a property specific search and it is vital that a correct plan is used. The local authority will only search against the land on the plan provided, so if a parking space/garage/additional parcel is missed from the plan, it will not be searched against.
The following is covered by the local search result:
- Planning Permissions.
- Building Regulation Applications/Completion Certificates.
- Competent Persons Certificates – NICEIC, FENSA, Gas Safe Certificates etc.
- Extent of the adopted highway – some searches will give a plan showing the exact extent whilst others will just provide road names.
- Planning Enforcement Notices.
- Community Infrastructure Levy Liability – is there a charging schedule/have any notices of liability been issued?
- New Tram/Railway Lines.
- Change to road layouts.
- Compulsory Purchase Orders.
- Land Charges.
Drainage and water search
This search is property specific sent to the water authority serving the Property and will produce results based on the serial number of the meter. The search provider may ask for a copy of the owners’ bill if they cannot locate the records for the Property.
If it is known that the Property is connected to private water and drainage, it may not be worth doing a drainage and water search as the search results will reveal very little, if any, information.
The search results include plans which can be useful to show the approximate location of pipes and drains, although it cannot be relied upon as exact locations for building works.
The search results will confirm:
- Is the property connected to the mains water and drainage?
- Is the property connected to mains surface water drainage?
- Is there a buildover agreement in place?
- Does the main water/sewer pipe run through the boundaries?
- Does the main water/sewer pipe run within 30m of the boundaries?
Environmental search
The Environmental Search casts a wide net and will generally search the area in which the property is situated.
The reason the search comes back so quickly is because the result is not property-specific. The search provider will look at records for the area.
Depending on the size of the area being searched you may have to upgrade the search (at additional cost). The Landmark Search we carry out is zero to two hectares. Some larger farm titles will require an upgraded search.
The search covers:
- Flood Risk
- Land Contamination
- Ground Stability
- Radon Levels
- Energy/Infrastructure
Chancel
Chancel Repair Liability is the ability for the Church in the parish in which the property is located to request contributions towards the Chancel of the Church when it is in need of repair.
If a property has been transferred for value after 13 October 2013 and the chancel repair liability is not noted on the title then it is no longer enforceable.
We do not carry out a chancel search but instead offer Chancel Repair Liability Indemnity Insurance in lieu of a search. This is because it is cheaper to obtain indemnity insurance than it is to carry out a search to establish if the Property is located in an area in which the parish will call upon properties to contribute towards church repair.
If it was found post-completion that the property was in an area where there was a risk that the property may be asked to contribute and a contribution was later requested, a claim could be made under the policy.
No search indemnity
This can be obtained instead of searches on a purchase (if the buyer and any lender agrees) or on a remortgage (if the lender agrees). The policy will cover the possibility that in the future/when the client comes to sell their property if something arises which would have been revealed on the search but which could not be revealed because no searches were carried out then the Policy could be claimed upon.
It would need to be proven that it had a financial implication to resolve or the market value of the property was affected.
Various policies available offering different levels of cover:
- Purchase – covering Lender and Buyer
- Remortgage – Covering Lender only
Other searches
These tend to be property specific and can depend either on the area that the Property is in (such as tin or coal mining), specific risks relating to the Property or a client’s future plans for the Property, such as:
- Mining Search
- Flood Search
- Planning Search
- Further Environmental Searches which focus on a more specific element from the Standard Landmark Search
- Energy/Services/Infrastructure
- Highways Search
Should you wish to discuss any of the issues raised in this article, please contact Elizabeth Dickinson.
