Real estate checklists PDF

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Summary

Comprehensive checklists detailing title investigation, searches and enquiries, water and drainage enquiries and principle 4 of the code of conduct...

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CONDUCT CHECKLIST. Principle 4: duty to act in the best interest of your client. Can you act for both buyer and seller? Outcome 3.5 (pg 28)  not if client conflict OR significant risk of conflict. BUT Outcome 3.6 (pg 28)  client conflict + substantially common interest = able to act ONLY IF conditions a – d are met. Indicative behaviours = advice from SRA, not mandatory. If you follow, you’re likely (not) to meet the outcomes. IB 3.5 (pg 29)  Don’t act if you cannot represent them both fair and square. IB 3.11 (pg 30)  Don’t act if the interests in the end results aren’t the same. IB 3.14 (pg 30)  Don’t act if it’s: transfer of land for value, assignment of lease or any other interest in land for value.

Can you act for both buyer and lender? Outcome 3.5 (pg 28)  not if client conflict OR significant risk of conflict. BUT Outcome 3.6 (pg 28)  client conflict + substantially common interest = able to act ONLY IF conditions a – d are met. IB 3.3 (pg 29)  Don’t act if you need to negotiate, e.g. on price.

Contract races Outcome 11.3 (pg 47)  Allowed, but must inform all the buyers.

Undertakings You never have to give an undertaking. BUT… Undertaking + ridiculous timescale = must stick to that timescale!!! Outcome 11.2 (pg 46)  If no timescale agreed, within a reasonable time.

IB 11.5 (pg 47)  Have a system to record when they’re given & completed. IB 11.6 (pg 47)  undertaking based on future event + event not happening = inform recipient.

TITLE INVESTIGATION CHECKLIST. I

D

E

A

Identify Describe Explain Action: indicate what action is required  Enquiry  Tell client  Cure defects

Property register Easement of drainage + burden = cost of maintenance. No right to easement of air/light etc. = developers can restrict light/air/space. Mines and minerals not included = works could cause disruption & no stake in any minerals found. Benefit or burden not specified = restricted by something you’re unsure about. Land burdened by right of entry = could interfere with intended use.

Proprietorship register Absolute title? Preferred. “no disposition of the registered estate by a sole proprietor” = tenants in common = all owners party to sale. Indemnity covenant = you take responsibility, if seller found liable for your breach.

Charges register Positive covenants do not automatically run with the land. UNLESS

*Buyer enters an indemnity covenant* Restrictive covenants = bound by any such covenant specified. Mortgage = must be discharged upon completion. Unilateral notice = must be cancelled for sale to complete. [caution = unilateral notice]

SEARCHES & ENQUIRIES CHECKLIST. Local Land Charges Search When? Fee? Every transaction. Yes, varies. Financial charges

How?

What?

Form LLC1.

A certificate.

Adoption of estate roads.

Tree preservation orders permission.

Some trees can’t be cut down without

[Smoke control orders fireplaces].

Non-smokeless fuel

Compulsory purchase orders owner’s consent.

≠

domestic

Land can be obtained without

Planning permissions granted

History of successful applications.

Orders revoking/modifying permissions. Conservation designation orders

Post 31 August 1974.

How will the entries affect the proposed use for the property?

Enquiries of Local Authority When? Fee? Every transaction. Yes, varies.

How? Form CON 29(O)

What? Document.

CON 29 v CON 29O? CON 29: relevant to every transaction. certain transactions.

CON 29O: specific to

Enquiry 1 – planning consents or building regulation approvals? Granted? Pending? Refused? Are we authorised for proposed use? Entry 2.1 – highways maintainable at public expense? Chance of adoption? If so, who will pay to ‘bring it up to standard’? Private road? Physical conditions? Is there permission to use? Easement on property (not charges) register? Bonds. Enquiry 2.2 – crossed by public path = cannot build over it or prevent access. Enquiries 3.4 & 3.5 – new roads or railways proposed within 200m? High Speed rail? Enquiry 3.6 – traffic schemes? One-way roads? Enquiries 3.8 & 3.9 – breach of building regulations? Breach of planning control? Enquiry 3.12 – proposed compulsory purchase orders? Enquiry 3.13 – notices for remediation of contaminated land? Enquiry 3.15 – property an asset of community value = if sold, community groups get a chance to purchase. Enquiries 10 to 14 – is property in a special designation area? Enquiry 18 – have environmental or pollution notices been served? Enquiry 21 – is property registered as common land or village green? What was not revealed that you would have expected to see? LLC1 v CON 90[O]?  All submitted simultaneously + to the same LA.  1 cheque to cover them all.  Matters directly affecting the property, not adjoining land.

LLC1  only reveals things that fall within the statutory definition of a local land charge, e.g. planning permission. Negligence does not have to be established with an LLC1 error. Only reveals information that is currently on the register

CON 29[O]  Wider range of subjects, not restricted to land charges. Negligence has to established, in the case of any errors made on the forms. Reveals information that has occurred in the past or that will do in the future – pending charges

Pre-contract enquiries of the seller When? Fee? Every transaction. No.

How?

What?

CPSE 1 (2,3,4)

Response from sols.

Seller is not bound by statute to respond; however, it would be counterproductive not to. Fire safety

Boundarie

Compliance with building & planning regulations

Adverse i ht Access to the t

VAT status

[CPSE 2 = sale of property subject to tenancies.] [CPSE 3 = grant of a new lease.] FACTS.

CHECK

[CPSE 4 = assignment of a lease.] Additional enquiries: those that are not covered by the CPSE – add at the bottom of form. Dispute with i hb ?

Occupatio ? Alterations? PP? Building regs?

Change in ?

Services passing through adjoining l d?

Services for adjoining land?

Water and Drainage Enquiries When? What? Every transaction.

How? CON 29DW to water company....