Recommended commercial property searches

When carrying out commercial property transactions, whether purchasing, leasing, or arranging funding, it is essential for buyers and lenders to conduct property searches. These searches uncover critical information that could affect the property’s value, future use, and potential liabilities.

Searches can reveal issues such as flood risks, the presence of public utilities, planning policies, financial liabilities, and legal restrictions. Understanding these matters is crucial for purchasers and tenants to avoid unexpected obligations or limitations.

When to carry out property searches?

Property searches should be conducted before committing to a transaction. For sale contracts or lease agreements, searches must be completed before signing. If proceeding directly to a transfer or lease, searches should be undertaken before finalising the transaction.

Do I have a choice?

While certain searches are strongly recommended, some transactions may proceed without them—at the buyer’s risk. Without searches, a purchaser or tenant may unknowingly acquire a property that:

• regularly floods, making insurance difficult or expensive;
• has outstanding financial liabilities that transfer to them;
• suffers from subsidence due to historical mining activity;
• is subject to compulsory acquisition for infrastructure projects;
• sits on contaminated land requiring costly remediation; or
• cannot legally be used for its intended purpose without further approval.

Lenders typically require specific searches before agreeing to secure a loan against a property.

How long are searches valid?

Some search results are historic and remain unchanged, such as chancel repair liabilities. Others, such as planning applications, may change frequently. Most searches are considered valid for up to six months, though some lenders require searches to be no older than three months at the time of drawdown.

What are property searches?

These are enquiries made on your behalf by your solicitor or conveyancer to various authorities, public bodies and utility providers or private search providers who have compiled information about a property from various sources.

Local authority search (CON29R & CON29O)

Reveals planning permissions, building regulations, road schemes, environmental notices, and common land designations affecting the property.

Local land charges search (LLC1)

Identifies financial charges, compulsory purchase orders, tree preservation orders, and planning enforcement notices.

Planning search

Provides information on planning applications affecting the property and its surrounding area.

Highways search

Confirms whether the property abuts a publicly maintained highway and identifies potential access issues.

Environmental search

Assesses land contamination risk, floodplain data, and historical land use. If contamination is found and the original polluter is untraceable, the current owner may be responsible for remediation.

Flood risk search

Evaluates risks from river, coastal, groundwater, and surface water flooding, which can impact property value and insurance terms.

Energy and infrastructure search

Identifies legal, regulatory, and environmental factors affecting energy projects and infrastructure developments near the property.

Canal and river search

Reveals potential flood risks, waterway maintenance responsibilities, navigation rights, and legal restrictions.

Mining Searches

• General Mining Search: Assesses risks from past, present, or planned mining activities, including ground instability and contamination.
• Coal Mining Search: Determines if the property is in a coal mining area and identifies mine shafts, subsidence risks, and historical mining activity.
• Other Mining Searches: Checks for brine, lead, tin, or chalk mining risks in relevant areas.

Chancel repair search

Determines whether the property carries a financial liability to contribute to local church repairs. If applicable, indemnity insurance is recommended.

Utilities searches

• General Utilities Search: Includes electricity, gas, telecoms, drainage, and water supply checks, essential for development sites.
• Drainage and Water Search: Confirms mains water and drainage connections and identifies any public sewers that may restrict development.

Limitation of searches

Searches provide information available at a given time and may not disclose all potential issues. Some risks, such as undocumented historical mines or environmental changes, may not be captured. Buyers should also conduct independent research, seek legal advice, and inspect the property to gain a full understanding.

Older searches may become outdated, and transactions taking several months may require updated searches. Some searches can be refreshed at a lower cost instead of ordering entirely new reports.

Insurance alternatives

In some cases, insurance can be used instead of or alongside searches. However, insurance policies only provide financial compensation and do not prevent issues from arising. They also typically cover actual losses rather than consequential damages or lost profits. Conducting searches remains the best way to mitigate risk in property transactions.