No matter whether you're a first-time buyer, or you have already firmly positioned yourself on the property ladder, buying a house is a substantial investment for the rest of your life. You'll therefore want to make sure that you have all the information you need about the property before you commit to exchanging contracts.
While you can carry out some general inspections on the property yourself, it's important to instruct a surveyor to take a closer look at the structure and functioning of the house. Instructing a solicitor to complete detailed property searches is strongly advised.
As a part of the legal due diligence process, your conveyancing lawyer will carry out several conveyancing searches on the property to ensure that there are no fundamental issues or risks with the property that you should be aware of before you commit to a purchase.
What searches are done when buying a house?
The precise property searches that will be carried out will depend on your location and mortgage lender requirements.
Typical searches on a property that will be carried out by a conveyancing solicitor include:
- Local authority checks
- Environmental searches
- Drainage and water searches
- Local planning application searches
- Mining investigations
- Searches for infrastructure projects
Local authority checks
A local authority search assesses the local area and land where the property you are buying is located. Local authority searches highlight matters such as:
- Planning issues
- Building control issues
- Highways issues
- Pollution issues
They also come in two parts, known as Local Land Charges Register Searches (LLC1) and Enquiries of the Local Authority (CON29).
LLC1 covers specific issues including:
- Planning agreements or conditional planning permissions
- Whether the property is situated in a tree preservation order area
- If the property has listed building status
- If the property is located in a conservation area
- If financial charges are registered against the property
CON29 covers matters including:
- Proposals in place for new roads, traffic, and rail schemes within the vicinity of the property
- Planning decisions that could affect the property and surrounding area
- Whether the property is on contaminated land
- Levels of Radon Gas
Environmental searches
An environmental search, as the name would suggest, reveals any important environmental risks that surround the property you intend to purchase. The search will cover issues such as:
- Contaminated land
- Ground stability
- Flooding
- Landslip
- Energy and infrastructure
- Radon gas
Environmental searches can also be conducted to confirm if there are any overhead power lines or mobile phone masts within 250 metres of the property.
Drainage and water searches
A drainage and water search enquiry can be made to obtain important information such as ensuring sewer connections and water supplies are connected to a proper source. These searches are usually made with the company that is responsible for providing water and drainage services.
This property search will be looking for and highlighting:
- Who owns and maintains the sewers, drains and piping
- If the property is connected to a public water supply and sewer
- Whether the water supply is metered
- The location of public sewer and drainage pipes
- Whether permission is needed from a water company to make any future home extensions
Local planning application searches
Local planning application searches may be carried out where there has been a history of previous planning permission and applications. Details can be found as to whether these applications have been granted, issued or refused, and the reasons for these decisions.
Mining investigations
Depending on the location of the property in question, it may be necessary to complete a mining search. This would be done to establish whether there is a likelihood of mining activity having been carried out beneath the property, or in the nearby area.
Searches for infrastructure projects
Searches for infrastructure projects will identify whether there are likely to be any infrastructure or transport projects that will impact on your enjoyment of a property.
How long do searches take when buying a house?
The exact time it takes to complete property searches when buying a house will depend on a number of factors. Including the location of the property you are looking to buy and the complexity of any issues that are discovered during a search.
The time it takes to complete a local authority search may also depend on whether the local authority in question is overloaded.
Typically, property searches should take no longer than a few weeks to be completed but could take longer if there are any backlogs on the local authority's behalf.
How much do property searches cost?
The cost of property searches will likely vary from council to council. However, our residential property solicitors advise that you should allow £550 approximately for searches that will be required and which we will undertake.
For more information on our residential property fees and how we charge for our services, please visit our pricing page.
What are the three main searches when buying a house?
The three main searches that will typically be carried out when buying a house, no matter where your property is located, are:
- Local authority searches
- Environmental searches
- Water and drainage searches
Additional searches can be carried out where required (such as the ones mentioned above), but these are usually the three core searches that your conveyancing solicitor will put into action before you consider exchanging contracts on the property.
Do I really need property searches?
Given that property searches are an additional expense to consider, many house buyers question whether it is necessary for them to be conducted at all.
If you are using a mortgage to purchase a house, then property searches will be necessary. Mortgage lenders will want to be sure that the money they are lending will not be invested into a property that has a higher chance of being worthless in the future.
While property searches are not necessary for cash buyers of residential properties, taking this approach is not advisable. The costs and time spent on property searches are relatively minor when completing such a valuable transaction, so it pays to have peace of mind that everything is in order.
Can I do property searches myself?
Yes, you can technically carry out certain property searches yourself when buying a property. However, this does not mean that you should take this approach.
Property searches are complex and require an in-depth understanding of what is required, the potential risks on display, and what the search results will mean for your transaction.
Conducting searches on a property yourself may also mean that you do not have as much control over the costs involved as you would be when working with an experienced conveyancing solicitor.
What happens after searches are complete when buying a house?
After conveyancing searches have been completed, your conveyancing solicitor will outline anything that may be of concern and share this with you in a detailed report. They will also be likely to raise an enquiry with the seller's solicitor.
Your conveyancing solicitor will provide you with technical advice on any risks that have been discovered, help to resolve any issues, negotiate indemnity insurance, and get any risk reflected in the price.
You can use the results from the property search however you wish. Often, if there are issues in the property searches that were not previously disclosed by the seller, you may wish to renegotiate the price of the property. For example, you may wish to renegotiate if there are likely to be further costs to address any issues, or if there is a significant risk of flooding.
Once you, your conveyancing solicitor, and your mortgage lender are satisfied with the results of the searches, you can move forward to the exchange of contracts.
Can you exchange contracts without searches?
If you are a cash buyer, it is not strictly necessary that you carry out property searches. This means that, in theory, you can proceed to exchange contracts without completing any searches on the property first.
If you are buying a property with a mortgage, it is extremely unlikely that you will be able to exchange contracts without conducting searches first.
Can you exchange contracts before searches?
The exchange of contracts is the point at which a property transaction becomes legally binding. This means that both buyer and seller are committed to the transaction and both will be required to honour the agreed terms. Failing to uphold the terms of the contract, or pulling out of the transaction altogether, will result in a financial penalty (unless there is a very compelling reason to do so).
If you are a cash buyer who intends to conduct property searches after contracts have been exchanged, you are putting yourself at serious risk. If issues or risks are found in a property search that takes place after contracts are exchanged, there is very little you can do. You will not be able to renegotiate a price with the seller and you will need to address the issue yourself.
How long are property searches valid for?
There are certain limitations when it comes to the time property searches are valid for.
For example, local authority searches need to have been ordered within the last six months to be valid at the time of completion. If completion does not take place within six months, another search would need to be ordered.
Can local conveyancing searches be fast tracked?
Unfortunately, in most cases local conveyancing transactions cannot be fast tracked. Different authorities will have different turnaround times which means that the time it takes for a search to be completed can vary. Some local authorities may offer a fast-track service if requested, but additional fees will be required.
What is indemnity insurance?
Indemnity insurance is a protection policy that can apply to residential property transactions. It is a one-off payment that covers the cost implications of a third party making a claim against any defect with the property you intend to buy.
The insurance acts to protect you against specific problems with a property that could cost you in the future.
Our conveyancing solicitors can advise you on whether indemnity insurance would be recommended following the outcome of your property searches.
Our residential property conveyancer's expertise
At IBB Law, our residential conveyancing solicitors provide professional legal advice on all aspects of buying and selling property, including property searches. Our process and quality standards help to ensure that all transactions we support are efficient and we promise to keep you up to date at all times concerning the progress being made.
Our team are also fully accredited and a member of the Law Society's Conveyancing Quality Scheme. This provides assurance that you are getting the best possible conveyancing service. We serve on the panels for all major mortgage lenders in the UK.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.