The importance of property searches when purchasing a property
Purchasing a property is a huge commitment. It’s exciting but can also be quite a stressful time for many people. Coming from a member of the conveyancing department, our goal is to reduce the stress from clients by breaking down each stage of the process and explaining it clearly. One of the most critical parts of the home-buying process is carrying out the relevant searches to identify any potential risks or issues which could affect the property’s value or ownership.
Why Are Property Searches Important?
Once contracts have been exchanged, you are legally committed to purchase the property. This means that all enquiries are raised prior to exchange of contracts as, once this has taken place, the seller is not guaranteed or obliged to deal with any questions or issues and the purchase price cannot be negotiated. Therefore, it is important that all searches are reviewed prior to exchange of contracts to ensure any enquiries can be raised accordingly and no surprises arise.
Property searches are important to identify planning and building development issues. Searches are investigations carried out to check for any issues affecting the property. These searches help protect the buyer by revealing important information as detailed further below.
What Are Property Searches?
Pre- contract searches, as opposed to pre-completion searches, are carried out prior to exchange of contracts and during the enquiries stage. They gather information on the legal status of the property, as well as some features in the area. They should identify potential issues that could affect the property now or in the future. There are different types of property searches, each serving a different purpose. The most common include:
- Local Authority Search
- Environmental Search
- Water and Drainage Search
- Flood Risk Search
A Local Authority Search is one of the most important checks that will be carried out. This search provides information on planning permissions and building regulations approvals and any future development plans that might affect the property. The local authority search will also highlight any existing planning restrictions, which can help avoid any surprises.
An Environmental Search is designed to identify any environmental risks related to the property. This could include contaminated land, mining or landfill sites, which could pose environmental or structural risks to the property now, or in the future.
A Water and Drainage Search will confirm whether the property has a connection to local water and sewage systems. It will provide details on if the property is connected to a mains water supply or whether it relies on an alternative source.
A Flood Risk Search helps to determine whether the property is in a flood-prone area. Buying a property in an area with a high risk of flooding can have significant financial implications, both in terms of insurance premiums and potential property damage. Knowing the flood risk can help buyers take appropriate precautions.
Potential Consequences of Excluding Searches
While excluding property searches may save time or money, doing so could have severe consequences. Failing to carry these out may leave you unaware of:
- Environmental risks, like contamination or flood zones that could be expensive to address.
- Unforeseen costs, such as high insurance premiums due to flood risks or drainage issues.
Overall, property searches are an essential part of the property-buying process. They provide important information about the legal, environmental, and physical aspects of the property, ensuring that buyers are fully aware of any risks or liabilities before committing to the purchase of the property. While carrying out searches may add some time and cost to the process, they offer significant long-term benefits by protecting the buyer’s investment and any future financial implications. Not only this, but it also provides a buyer with peace of mind at an already overwhelming time.
If you are in the process of buying a new home, or need support with searches for a property, our Residential Property team can help. Please contact us here and a member of our team will get in touch.
Disclaimer: General Information Provided Only
Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice. We cannot be held responsible for any loss resulting from actions or inactions taken based on this article.
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