Know your searches

Conveyancing doesn’t bounce off the page as the most exciting topic, let alone its various cogs and screws, but it’s been proved time and again as one of the most important of stages in the property buying process.

We see certain nightmarish property stories that trickle into the press quite easily. You may have heard about the London couple that bought a dream home only to discover through vibrating glass and shaky furniture that the Circle Line ran below their kitchen?

Or the buyer that sued the seller after learning that her next door neighbour was in fact ‘a living hell’, cursing and ‘banging on the walls at night’, contrary to the seller’s prior assurances of quiet and friendly immediate neighbours.

In reality, there are so many mundane matters involved in conveyancing that could make or break a home buying transaction – and they don’t make the headlines.

An intricate process, comprising lots of paperwork and fact finding, conveyancing involves the solicitor or licensed conveyancer really zooming into the property postcode to dig out a plethora of closeted information that only bubbles to the surface on closer legal inspection of a property.

Transfer of ownership

The legal process in purchasing a home is often very daunting; after all, for a majority of Britons, their property is by far their most valuable asset.

One of the first steps for a buyer after finding a dream home and making an offer is to choose a conveyancer to undertake the legal work.

To go back to basics, the role of a conveyancer is to carry out a series of checks to help settle the transaction between buyer and seller, thereby transferring ownership – the title – to the new owner of the property.

This is a crucial but often overlooked role, and wise homebuyers should understand how conveyancers operate so they know how the process works and what to expect.

As part of the title transfer, the conveyancer has to carry out necessary due diligence by undertaking ‘searches’. The conveyancer submits queries – known as searches – about the transacted property to a number of different data providers in order to verify that the property is a ‘good title’ before that title is exchanged between buyers and seller.

So, why is it important for homebuyers to learn about this particular gear in the conveyancing machine?

Well, searches are a vital part of the conveyancing and home-buying process, as each search highlights factors that may impact the new owner’s enjoyment of the home or affect the property’s value in the future.

Buyers often get frustrated by the time it takes to complete a purchase, and conveyancers can be swiftly blamed if a deal falls through due to delays and lack of communication.

However, I believe this is because the end customers – the buyer and seller – are not aware of the complexities of the conveyancing process, and what a ‘search’ really entails.

The types of searches a conveyancer carries out are heavily dependent on the nature of the property and its location. As part of the mortgage deal, lenders may request certain searches, but almost all lenders will request the following searches to be carried out.

Local authority search

A local authority search is an essential part of the conveyancing process which gives the buyer a better idea of issues related to the property and the surrounding area.

The search covers 13 subject areas by querying data from several departments including local land charges, planning, highways, environmental health and building control.

A local authority search can be either ‘official’, carried out by council staff, or ‘personal’, carried out by specialist searchers employed by the search industry. As the latter involves a personal inspection of the relevant registers and records, the resultant report is known as a personal search.

A mortgage lender can request an official local authority search, but many will accept a personal search.

Environment search

An environment search is important to determine whether or not the property is built on or located close to contaminated land. A local search often fails to reveal whether a home was built near a former industrial site, or is located near a landfill.

An old landfill site, or the by-products still present within the land could prove a health hazard to the owner occupier, which is why a search is necessary to uncover the presence of material or toxicity that may prove to be a potential risk.

Flood risk

Flood risk reveals whether the property is susceptible to flooding and the degree of exposure and risk, ranging from minimal to very high. Flood risk covers all sorts of water-related risk, including coastal flooding, rivers, groundwater and surface water.

If your prospective property is at risk of flooding, for example, it could have a huge impact on whether or not you can acquire insurance cover. Subsequently, if a property isn’t insurable, mortgage finance becomes a lot tougher to secure.

The results of a flood report could propel the buyer to reduce if not withdraw the offer, and often involves the buyer commissioning a more detailed flood report to gauge next steps, such as whether to take protection measures against potential flooding in the future.

With 5.2 million properties in England – one in six properties – at risk of flooding, we’re never too far removed from the risk.

Water and drainage search

A water or drainage search reveals whether there are any sewers or water pipes within the curtilage of a property. Searches with the supply company will give a clear indication of how the property is connected to the water supply and public sewage system. It will also determine whether a public sewer or water mains can be found running through the property.

Chancel repair search

The chancel repair search has been a source of contention for years. Chancel repair dates as far back as the 4th century, and was established under the principle that good Christians should pay for the church’s repairs.

Following the reformation, however, King Henry VIII sold off land owned by the church, and so the liability of repairs transferred to private owners over the centuries.

Now it may sound positively medieval, and although chancel repair liability has been seemingly abolished since 2002, it is still possible for the church to register a notice of chancel repair liability.

In 2003, for instance, Andrew and Gail Wallbank, were made liable to pay £230,000 for repairs to the parish. The case dragged on for a while, and they eventually ended up auctioning their property and moving away.

A chancel repair search reveals if a property must contribute to local church repairs. If a liability is found, the conveyancer encourages the buyer to take out insurance in the event of the church making a claim in the future.

Other searches

Depending on the lender’s specific request, some additional searches may have to be carried out by the conveyancer. Optional searches can depend on the type of property or location, for example, a coal mining and brine search is undertaken if your property is located near any coal mining area in the country; a coal mining report to gauge the possibility of any future coal mining close by.

Beneath many areas of the British Isles lies a labyrinth of tunnels and shafts left behind by a legacy of mining and a history of mineral extraction.

For example, according to a recent blog by environmental data analysis firm Groundsure, underground mining dates back 5,000 years to Neolithic times when flint was extracted in South East England; Grimes Grave, a Neolithic flint mine remains still preserved by English Heritage.

Much of the land above old mines is now developed, but we remain blissfully unware of what lies beneath us. Quite often the lender will insist on a mining search if the property is located in certain areas, such as Cheshire, Bristol and Somerset.

There are plenty of other searches a conveyancer could recommend. For example, does nearby fracking pose a potential risk to the property?

If the property is within certain boroughs, it will be important to assess the impact of TFL’s Crossrail project, in which case the solicitor will enquire whether the property is located within 200 meters of the rail or whether there has been a previous attempt to compulsory purchase the property.

Shop around

It’s important to value the role of the conveyancer and shop around for the best options in the market.
Buying a property often involves a lengthier process than selling, so it’s especially important for the buyer to ask around, and speak to family, friends and the lender for positive reviews.

Online conveyancing remains a more affordable option, and certain online conveyancers exceed expectation in delivery and quality of service; however, the same due diligence should be applied to selecting an online conveyancer.

Conveyancing has made a lot of progress in recent years, with conveyancing search providers, such as Search Acumen, working conscientiously to improve and speed up the search process.

The Land Registry has also been moving towards further digitisation of its data, so don’t be surprised if conveyancing becomes a lot faster in the next ten years or so.

But remember – due diligence will always take time and conveyancers put in a lot of hard work to ensure you enjoy your property. And sadly, they’re often not given enough credit.