ABSTRACT
It is important to check the search results received and, where there are entries which are not acceptable, the transaction should not continue until adequate explanations have been obtained. Common problems arising from the results of local authority searches include the following:
An enforcement notice registered against the property. This will indicate that there either is or has been an unauthorised use of the property which was not voluntarily discontinued. It is important to check to what the enforcement notice relates, whether it is now being complied with and whether the authorised use accords with the client buyer's requirement.
An improvement grant. It is increasingly common for older properties to be renovated with the benefit of an improvement grant from the local authority. Full details of the improvement grant are required because these are registered as a land charge and carry conditions which affect the property for a period of five years after the date of registration of the grant. Improvement grants are made pursuant to the Housing Act 1985 and the relevant conditions must be carefully scrutinised to ensure that the transaction envisaged is authorised and will not result in an obligation to repay the amount of the grant. If such an obligation is imposed, it is important that the seller is required to discharge it.
Section 106 agreement (formerly known as a s 52 agreement). Such an agreement was made pursuant to a planning permission in respect of the property. It will contain conditions and it is important to obtain a copy of the agreement and confirmation from the seller that the conditions imposed have been fully observed.
The listing of buildings. It may be that the property has been listed within a particular category by the Department of the Environment as being of special architectural interest. Such a listing does not necessarily detract from the property, but depending upon which category of listing applies, it can prevent significant alteration to the overall appearance of the property.
The property may be situated in a conservation area or smoke control zone under the Clean Air Act 1956. Neither of these revelations is dramatic, but again, they affect the freedom of the buyer to enjoy the property.
The property may not abut a publicly maintained highway. The variable situations which can arise in this regard have previously been discussed, and the implication as far as services to the property are concerned should be considered.
The revelation of planning permission refusals, copies of which have not been sent with replies to the property information form. The buyer's conveyancer should require the seller's conveyancer to obtain such copies. The last planning permission is important, as earlier per missions may have been superseded. Copy refusals are also important, because these might be of relevance to the buyer in his future intentions for the property.
The existence or otherwise of a structure plan by the relevant local government authority and its stage of preparation. Many clients are acutely concerned with their environment and they assume that, at the date of buying the property, proposals for development for land in the vicinity will be revealed. This is not necessarily the case, and the client buyer should be notified accordingly. If he requires further enquiries to be made, these should be carried out at the local authority as well as asking the seller whether he knows of any proposals for local development.
Public drainage. The local authority search might reveal the absence of a public drainage system and, in such a case, the buyer's conveyancer must ascertain whether the property has the benefit of any drainage system. If it is a private drainage system, further enquiries should be raised as set out before.
Some local authorities now maintain a contaminated land register. It is important to ensure that the property you are purchasing is not adversely affected but that, if it is, appropriate enquiries are made to ensure the structural adequacy of the property.
