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  • FIRST POST
    • Hansaro
    • By Hansaro 6th Jul 18, 11:21 AM
    • 22Posts
    • 9Thanks
    Hansaro
    Urgent, need help with some clauses pre exchange
    • #1
    • 6th Jul 18, 11:21 AM
    Urgent, need help with some clauses pre exchange 6th Jul 18 at 11:21 AM
    Hello all,

    I have received contract and document with such a short window until the exchange deadline. Monday the 9th
    I am offered planning searches as an optional pack
    This includes school ratings which I'm not interested, crime rate and planning permissions around 250m from my new development.
    Should I order this pack of searches? I don't have kids, crime rate can be found online, and around my block, left right and back there are other blocks belonging to the same development. In front there is a mini park also belonging to the development.
    After that, excuse my ignorance, there is another problem related to a defect in the title which could put all owners at a small risk and for which we could take insurance: Below is the explanation I received but don't quite understand:


    '' technical defect in the title of the property the superior title (the sellers title) makes reference to a historic Deed however this Deed was never produced to the Land Registry and therefore the contents and the restrictions set out in the Deed are unknown. As outlined in the report the Deed may contain covenants which the current building and its use are in contravention of and in theory could be enforced against you and the other owners in the building if the original Deed is ever located. You will note that the report does refer to the Deed being over 100 years old and the likelihood of any potential enforcement is unlikely. However if you do wish to cover yourself from this small risk we have suggested the option of an indemnity policy which is an insurance which will cover you financially in the event that such enforcement action is taken.''


    These two are the only bits, I relay want to transfer the money and sign the contract for exchange.
Page 1
    • hazyjo
    • By hazyjo 6th Jul 18, 12:37 PM
    • 11,068 Posts
    • 14,612 Thanks
    hazyjo
    • #2
    • 6th Jul 18, 12:37 PM
    • #2
    • 6th Jul 18, 12:37 PM
    Don't really see how anyone can make those decisions for you. It sounds like you're aware of what the searches cover, and what the indemnity policy would protect you against. Entirely up to you. What I would choose to do is irrelevant in this case.


    What's the rush with buying? Why the 9th and how come you're only at search stage? That's only usually around a third of the way into the buying process. When did you start the process? Presuming a cash buyer?
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes; Thai cooking stuff; Jo Brand talk; Slime Factory; Flawless tickets; Comedy night tickets
    • Hansaro
    • By Hansaro 6th Jul 18, 2:27 PM
    • 22 Posts
    • 9 Thanks
    Hansaro
    • #3
    • 6th Jul 18, 2:27 PM
    • #3
    • 6th Jul 18, 2:27 PM
    Thanks. While I understand the planning searches I really did not understand the defect on the title. Seeing that is low risk and the it would cost me 250 I won't go for it.
    Will take planning searches just in case.
    Rushing a bit. Exchange deadline set on Monday. I have started the process in February but solicitors could only work from the start of June due to delay in drafting the contract and the head lease.
    • AlexMac
    • By AlexMac 6th Jul 18, 2:28 PM
    • 2,187 Posts
    • 1,918 Thanks
    AlexMac
    • #4
    • 6th Jul 18, 2:28 PM
    • #4
    • 6th Jul 18, 2:28 PM
    I'm not keen on these "Plan Plus" type searches since, as you say, they only contain the bl33din obv'us and your solicitor will presumably have already ordered the cheaper basic local authority search, drainage etc.

    If you were worried about Planning Permissions around you, you can search these by street names on your Councils website; ours go back over 20 years online

    The infinitesimal possibility that a 100-year-old Deed might surface with restrictions on you grazing sheep or tanning leather hardly seems a concern either. But if (for example) your lender or a future buyer's one (when you sell on) wants an indemnity, that will only cost a few quid, so of little consequence.

    In fact, last time I bought a little BTL flat, I told my lawyer not to do an environmental, Plan-PLus or Chancel Check search as I was buying cash and, like you, knew the area.
    • hazyjo
    • By hazyjo 6th Jul 18, 3:35 PM
    • 11,068 Posts
    • 14,612 Thanks
    hazyjo
    • #5
    • 6th Jul 18, 3:35 PM
    • #5
    • 6th Jul 18, 3:35 PM
    Thanks. While I understand the planning searches I really did not understand the defect on the title. Seeing that is low risk and the it would cost me 250 I won't go for it.
    Originally posted by Hansaro
    250 just for the indemnity?! I'd not expect to pay over 120 for one. Usually nearer 50-ish. Maybe it depends on the subject matter...
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes; Thai cooking stuff; Jo Brand talk; Slime Factory; Flawless tickets; Comedy night tickets
    • steampowered
    • By steampowered 6th Jul 18, 5:38 PM
    • 2,903 Posts
    • 2,882 Thanks
    steampowered
    • #6
    • 6th Jul 18, 5:38 PM
    • #6
    • 6th Jul 18, 5:38 PM
    If you are happy to proceed, tell your solicitor that you are happy to proceed to exchange without the searches and without an indemnity policy.

    The 'defect in title' is that it seems there is an unknown old document that could impose some unknown covenants on the property. As you say, it sounds like an extremely small risk.
    • Lysimache
    • By Lysimache 6th Jul 18, 6:10 PM
    • 176 Posts
    • 64 Thanks
    Lysimache
    • #7
    • 6th Jul 18, 6:10 PM
    • #7
    • 6th Jul 18, 6:10 PM
    Some leases stop you subletting so that can be an issue that might be in some ancient covenant... but then realistically who is gonna enforce that?
    • mortgageFTB
    • By mortgageFTB 6th Jul 18, 6:22 PM
    • 115 Posts
    • 102 Thanks
    mortgageFTB
    • #8
    • 6th Jul 18, 6:22 PM
    • #8
    • 6th Jul 18, 6:22 PM
    Even if you did order the searches, I doubt they would come back to you on Monday.
    • Jaffapig
    • By Jaffapig 6th Jul 18, 7:33 PM
    • 78 Posts
    • 65 Thanks
    Jaffapig
    • #9
    • 6th Jul 18, 7:33 PM
    • #9
    • 6th Jul 18, 7:33 PM
    The question is, would anything that came up in the searches stop you from wanting to buy the property at this late stage in the game?

    The crime and school stuff is something that if I cared about I'd want to do prior to making an offer, not a couple days away from exchange! As for the planning stuff, sounds low risk from what you say. Would anything it threw up dissuade you at this stage?

    The title thing I won't make much comment on due to inexperience, but it sounds v low risk.
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