When buying a property, whether to live in, or for investment or business purposes, a buyer's lawyer will almost invariably advise their client to have searches carried out against the property.
The purpose of the searches is to enable the legal adviser to gather as much relevant information about the property as possible so that the buyer can make an informed decision as to whether they want to buy it nor not.
Most people buying a property need mortgage financing and so have little choice as to whether searches are carried out. However a cash buyer may advise their lawyer not to do the searches in the interests of saving money or speeding up the process.
One of the most important searches is the local search. This is a series of pre-printed questions that is sent to the Local Authority in the area where the property is situated and the Local Authority provides answers to the questions on such important issues as: adoption of roads and planning.
Even if a lender is involved, some lawyers do not obtain an 'official' search from the Local Authority but rather an insurance backed 'personal' search. The danger of this approach is that the search may not provide full answers to all of the standard questions.
The danger for a buyer in trying to cut corners is well illustrated by a recent case. In the case, the buyer did the correct searches - and would have lost a lot of money if they had not done so.
A developer went ahead and bought land for development. They had relied on an official local search which did not reveal any problem relating to adjacent parking spaces. After the developer had bought the land, it was discovered that the local search was wrong. The developer brought a claim against the Local Authority for the loss in value of the land (plus their costs) and was successful.
To discuss this or any other property related matter, contact us.