Workshop 1 - pre-contract

Question 1

The stages of the process

Answer 1

1. Pre-contract stage
2. Exchange
3. Pre-completion
4. Completion
5. Post-completion

Question 2

Pre-contract stage - Seller

Answer 2

1. Accept offer
2. Instructs Solicitors
3. Obtain deeds from client or mortgagee and/or official copies of the register. Send the following documentation:
   - PIF (TA6)
   - Property Information Questionnaire
   - Office Copies Entries showing title documentation referred to in Office Copy Entries (eg conveyance)
   - in the case of unreg land, prepare the epitome of title/abstract of title and related documentation.
4. Obtain details of any mortgages and redemption figures.
5. Prepare and send PIF (TA6 and/or TA10) and fixtures and contents form to buyer or replies to enquiries raised by buyers.
6. Compile title package (ie deduced title) and send to buyer.
7. Draft and send contract to buyer.
8. Engross contract and duplicate and send one to buyer’s solicitor.
9. Sign contract

Question 3

Pre-contract Stage - buyer

Answer 3

1. Makes offer
2. Instructs solicitors.
3. Finance arrangements in place? (Eg mortgage offer, deposit funds, endowment/life policies).
4. Consider documentation from the seller.
5. Commision and consider survey.
6. Carry out pre-contract searches (Local Search and Enquiries, Water and Drainage Search, Up to date Office Copies - or SIM if unregistered, additional enquiries?
7. Consider PIF, Fixtures and Contents Form (TA6 and/or TA11) and title information and raise additional enquiries or raise full set of enquries.
8. Investigate title and raise any requisitions/seek further information.
9. Approve/amend draft contract.
10. Report on title and searches to buyer (and mortgagee)
11. Sign contract.

Question 4

When is planning permission needed?

Answer 4

required for the carrying out of development (S 55 of the TCPA 1990

Question 5

What is development of the property?

Answer 5

S 55 of the TCPA 1990:
The carrying out of building, engineering, mining or other operations in,on or over or under land.
The making of any material change in the use of any buildings or other land.
Material is not defined and is a question of fact and degree in each particular use.

Question 6

Matters which do not constitute development

Answer 6

Works for maintenance, improvement or other alteration of a building which affect only the interior or do not materially affect the external appearance of a building
The use of buildings or land within the curtilage of a dwelling house for the purpose to the use of the dwelling house

Question 7

Failure to comply with the building regulations

Answer 7

Prosecution for breach of building regulation control (£5,000 fine)
Proceedings must be brought within 2 years.
Enforcement notice requiring the alteration or removal of work carried out in breach of building regulations control (one year).

Question 8

What to do as a buyer’s solicitor when building/planning consent not received?

Answer 8

Ask the seller to obtain a regularisation certificate from the local authority which will list the wok required to bring the building up to the correct standard. This is because the building might not be up to the correct standard.
Insurance.
There might result in issues with the lender who may be reluctant to lend or will impose conditions.

Question 9

Planning permission - Seller’s solicitor checklist

Answer 9

1. The date when the property was first built and the use to which it has been put since then.
2. Whether any additions, alterations or extensions have been made to the property or within its grounds since it was first built and the date.
3. If the activity required planning consent and whether planning consent was obtained. If there are conditions to the planning consent or GPDO, they should be checked that they have been complied with.
4. Whether any alteratons, changes of use etc have taken place in breach of any covenants which affect the title.
5. Whether the property is a listed building or in a conservation area.
6. Whether building regulation control has been complied with.

Question 10

Planning permission - Buyer’s solicitor checklist

Answer 10

1. The date when the property was first built and the use to which it has been put since then.
2. Whether any additions, alterations or extensions have been made to the property or within its grounds since it was first built and the date.
3. If the activity required planning consent and whether planning consent was obtained. If there are conditions to the planning consent or GPDO, they should be checked that they have been complied with.
4. Whether any alteratons, changes of use etc have taken place in breach of any covenants which affect the title.
5. Whether the property is a listed building or in a conservation area.
6. Whether building regulation control has been complied with.

The enquiries of the seller and local authority will provide valuable information.
Any irregularity should be corrected at the seller’s expense or an indemnity should be taken from the seller in the contract.
The buyer may ask the seller to obtain retrospective permission.
Instructions should be obtained from the buyer in respect of his plans for the property following acquisition to consider if planning will be needed.