When it comes to buying or selling property in the UK, one of the most useful tools available to prospective buyers and sellers is searches through the Land Registry. Performing searches through the registry is necessary to obtain invaluable information about a property up for sale that may not be available elsewhere.
Land registry searches ensure a smooth transaction during the buying or selling process. Let's take a closer look at what prospective buyers need to be aware of before using the registry.
What Are Land Registry Searches?
Land Registry searches are performed to confirm the ownership and status of a property, including details of the current, and previous ownership, property boundaries, and any rights, and restrictions that might affect its use by a prospective new owner. Buyers should take the information available from searches seriously when approaching the purchase of any property.
Land Registry searches are commonly used to prevent fraudulent transactions from taking place. By verifying the ownership details of a property, buyers can be assured they are dealing with the legitimate owner of the property, and are not about to find themselves victims of a false transaction.
The Different Types Of Land Registry Searches
Title Register Search: The most common search provides information about the property’s current owner, price history, and any charges registered to it which may limit the buyer’s future use of the property.
Title Plan Search: The title plan outlines the property boundaries and its position concerning the surrounding land. This is particularly useful for buyers who want to understand the full boundaries of the property, as well as any rights of way or access paths that may exist and potentially, inconvenience them in their ownership.
Property Ownership Search: This search identifies the legal owner of the property. Buyers need to confirm they are negotiating with the true owner, reducing the risk of fraudulent transactions, and allowing the sale of the property to take place smoothly between all involved parties.
Flood Risk Search: Though not always considered part of standard Land Registry searches, a flood risk search assesses the property’s susceptibility to flooding. This can influence insurance costs and affect long-term property value, especially for properties built on floodplains which are at a higher risk of flooding.
Environmental and Local Authority Searches: These reveal any localised issues or environmental concerns that could impact the purchase of the property. Possible issues such as subsidence, which could compromise the property's structural integrity and safety to live in, and toxic waste or contamination risks from local sites, are all potential risks that come to surface through these searches.
Searching Through The Land Registry
Typically, the buyer’s conveyancer or solicitor will conduct Land Registry searches once an offer is accepted, however, buyers can access the registry themselves for a small fee if they so wish. The conveyancer or solicitor will submit a request to the Land Registry, specifying the types of searches required, which is now often done online for convenience and speed, through the digital directory.
The Land Registry then processes the search request, which generally takes between a few hours and a few days, depending on the type of search and the property’s location. Once the results are sent and received, the conveyancer reviews the documents returned and advises the buyer on any significant findings, if there are any to report.
The majority of the time, searches do not return major issues. However, if issues are uncovered, such as unresolved boundary disputes or similar restrictions, the buyer must decide whether to proceed with the sale, renegotiate the terms, or potentially, withdraw from the transaction.
Common Issues Identified in Land Registry Searches
Whilst Land Registry searches often reveal potential issues that could affect the buyer’s decision to complete a property purchase, their severity may vary, and not all issues can be as problematic as others.
Some of these issues might include the following:
Ownership Discrepancies: Cases where the seller is not the registered owner, leading to questions about their right to sell and potentially unravelling the entire property sale.
Restrictions: Some restrictions placed on the property, such as those that prevent commercial activities on residential property, could impact a buyer's position if they plan to develop the property into a commercial premises. Issues like these can also affect planning permission for future modifications and/or extensions to the building.
Easements: Easements are rights held by third parties, such as rights of way across the property that can impact privacy and discourage buyers from completing a purchase if members of the public are able to access part of the property, such as through a public footpath.
Outstanding Charges: Unpaid mortgages or financial claims attached to the property, which may need to be resolved before the transaction, lest the new owner be blocked from purchasing the property by a lender or other entity with a claim against the building.
Land Registry Searches Are Critical for Buyers
Land Registry searches can bring peace of mind and clear answers about the property a buyer intends to aquire as well as who they are purchasing it from. By highlighting potential risks, searches through the Land Registry empower buyers to make informed decisions and avoid costly mistakes, resolving any legal uncertainties before completing the transaction.
Land Registry searches serve as a safeguard against fraud, clarify ownership, and ensure all parties are aware of any potential issues before completing a purchase. Whether you are a first-time buyer or, a seasoned property investor, understanding and utilising these searches is vital to any successful property purchase on the UK market.
