Associate Pam Kamel, in law firm Blandy & Blandy’s Residential property team, looks at Bracknell Forest council’s ongoing IT issues, how the situation is affecting property transactions in the local authority area and what buyers and sellers’ options are.
Bracknell Forest council is in the process of rolling out a new IT system, which is continuing to cause significant delays for anyone buying and/or selling property in the local authority area. Any ongoing updates will be shared on the ‘Local Land Charges Search’ page of the council’s website.
During any conveyancing process, land searches are undertaken and this issue is resulting in a growing backlog, leaving many prospective buyers waiting on these local search results, with significant delays (some in excess of 42 days)and a risk of their transactions falling through. We address below some options and questions for those affected.
What is a Local Authority search?
These are divided into two parts and included, but are not limited to:
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Local Land Charges Register Search – this reveals any financial charges, restrictions and obligations. It confirms that there are no onerous financial obligations outstanding against the property and that sufficient planning permissions were obtained for the property’s original construction and any alterations requiring this.
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Standard Enquiries of the Local Authority – this confirms whether sufficient building regulation certificates of completion have been obtained for the property’s original construction and any later alterations, and whether the property is a Listed Building or in a Conservation Area, along with any necessary consents required for works.
What are my options?
There are several options available to anyone affected:
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Wait until your Local Authority Search is returned.
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Obtain a delayed Local Search indemnity insurance. Your solicitor or conveyancer will need to ensure that if you are purchasing subject to a mortgage, your mortgage lender will accept this alternative. It is worth noting that not all mortgage lenders will accept this.
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Opt for a personal Local Authority Search. As above, your solicitor or conveyancer will need to ensure that a mortgage lender will accept this alternative.
What is an indemnity insurance policy?
This is a type of insurance policy which will cover you for financial loss incurred as a result of any adverse entries that would be revealed in your search result.
For example, if building regulation consent was not obtained for an extension, the indemnity policy may cover the loss of market of value should the Local Authority enforce its removal.
The indemnity does not cover issues that were known to the parties at the time of the transaction or could have been discovered through other means, nor do they cover matters that arise after the policy is in place.
Additionally, they do not provide protection against physical defects in the property or issues that would be revealed by a survey.
While the policy offers protection, there are risks involved which require consideration. If a significant issue arises later, the indemnity may not cover all associated costs or future problems, potentially resulting in unexpected expenses.
What is a personal Local Authority Search?
Personal searches are quicker than standard searches. It is worth nothing that the accuracy of these will not be guaranteed, and some information in the standard search is not covered in a personal search.
An Official Local Authority Search is conducted by a member of Council staff, whereas a Personal Local Search is carried out by an independent search agent, using public records. The search provider typically provides their own indemnities to cover any errors revealed in their searches.
It is worth noting that the Law Society’s recommended practice is to carry out searches on all occasions.
Should you opt to proceed with no searches, the solicitor or conveyancer you appoint, and their firm, cannot accept responsibility for any adverse entries revealed.
Please do seek advice from them before making a final decision.
Blandy & Blandy is a leading firm of solicitors in the Thames Valley, with offices in Reading, Henley-on-Thames and Wokingham.
For further information or legal advice, visit www.blandy.co.uk.
