Commercial Property - Searches
When acting for the Buyer of freehold property or the Tenant of leasehold property we will need to carry out searches against the property as part of the process of checking the property prior to making the commitment to purchase or enter the lease called exchange of contracts.
The usual searches include:
LOCAL AUTHORITY SEARCH – this reveals ownership of roads, planning entries and any orders made against the property affecting its use. Where all the answers are negative this is called a clear search
ENVIRONMENTAL SEARCH – this is a desktop study of the site and the immediate vicinity and will reveal uses of adjoining properties that could potentially pollute (e.g. petrol filling station) abstraction of water, potential water contaminators and flooding risks. Where a result causes concern a subsequent detailed or even a site visit and soil test may be necessary
WATER SEARCH – will show routes of water and sewer pipes and will confirm if the property is connected to mains water and mains foul and surface water drainage.
OTHER SERVICES SEARCHES – where a site is being bought for development then searches can be made of electricity wires and cables, gas pipelines and telecommunication cables. These plans should be passed to the architect/surveyor who will contact the service providers to make enquiries about costs and availability of connection for the proposed development
Commons Registration search – is made where the property is near to open land to ensure no part of the property is open for common use.
INDEX MAP SEARCH – is made to check if part of the property is registered with the Land Registry
PRE-COMPLETION SEARCHES – these are made after exchange of contracts to check that both Buyer and Seller or Landlord and Tenant are solvent and that the Seller or Landlord has no mortgages or orders listed against the property. It is usual for the Seller’s solicitor to undertake to pay such money as may be required by the Seller’s Bank to release the property from the mortgage on the completion date.
The views expressed are of a general nature only and are not intended to be used without prior consultation on a specific project.