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Searches in Property Transactions

Often, lawyers will refer to the fact that they require to obtain various searches in order to complete a property transaction. Non lawyers (maybe even non property lawyers) will probably have little idea of what this actually entails. For those involved in property transactions, it may be useful to understand the mysterious processes gone through by the lawyers before they sign off on the title. Therefore, below is a brief review of the main search documents which would normally be obtained (and the purpose they serve). They are:

Property Searches

The modern technical terms for these searches are Forms 10/11/12/13. Which of these four option apply will depend on the specifics of the title. Effectively, this search will verify the current proprietors of the subject, whether there is a fixed charge over the title and (in some cases) any ancillary title documentation which requires to be reviewed before the title can be signed off. In addition, these searched will include a “personal search” which verifies whether there have been any court orders of other actions against the sellers which may prevent them transferring title.

Property Enquiry Certificate

This search is also known as a “local authority search”. Whilst in the past these were generally provided by the relevant local authority in the given area, they are generally now provided by specialist search companies. These searches will confirm whether the subjects are a listed building, whether any planning permissions or other consents are outstanding, whether any local authority notices (eg in relation to repairs) are outstanding and numerous other “local authority” matters which could be of interest to a purchaser.

Coal Report

As the name suggests, this is a search provided by the coal authority which gives confirmation as regards whether or not there was any historic mining activity in the area, whether there is ongoing mining activity and whether there is any likelihood of that activity having an impact upon the structural integrity of the subjects.

Charges Search

This is a search in the companies register against a UK limited company or limited partnership (and can also be obtained, in some cases, in relation to non UK companies) which gives confirmation of the status of the company (ie active or insolvent), the current directors/secretaries and any outstanding charges granted by that company which may require to be discharged prior to completion of the transfer.

Environmental

These searches are still fairly uncommon in Scotland. For residential properties, a brief desktop (ie using database information as opposed to a site visit) report can be obtained relatively cheaply. However, commercial reports are still fairly expensive and are generally only obtained when there is particular cause for concern.

This is a search in the companies register against a UK limited company or limited partnership (and can also be obtained, in some cases, in relation to non UK companies) which gives confirmation of the status of the company (ie active or insolvent), the current directors/secretaries and any outstanding charges granted by that company which may require to be discharged prior to completion of the transfer.