The Role of the Search
In the context of a property auction, a local authority search is a key component of the pre-sale Legal Pack. Because an auction usually results in an immediate exchange of contracts when the hammer falls, reviewing these documents beforehand is a standard part of a bidder's due diligence.
A local authority search provides an overview of the records held by the council regarding a specific property and its immediate surroundings. It helps a potential buyer understand if there are legal or financial obligations linked to the land that might affect its future use or value.
What the Search Usually Includes
The search is typically presented in two main parts within the auction pack:
LLC1 (Official Certificate of Search): This covers the Local Land Charges Register. It identifies restrictions such as listed building status, conservation area controls, or tree preservation orders. It also lists any "financial charges"-money the council may be owed for works already carried out on the property.
CON29 (Enquiries of the Local Authority): This focuses on planning and infrastructure. It highlights the property's planning history, including any building regulation breaches. It also provides information on nearby road schemes or proposed rail links that could impact the area.
Considerations for Auction Bidders
Reviewing the Date: It is helpful to check the date on the search results provided in the Legal Pack. While there is no set expiry, many practitioners suggest that searches older than six months may not reflect the most recent planning applications or council decisions.
Planning Obligations: If a search reveals that a property was altered without the necessary permissions, a buyer may become responsible for regularising those works after the purchase is complete.
Financial Liabilities: In some cases, councils attach debts to a property for services like road maintenance or emergency repairs. Reviewing the LLC1 helps a bidder identify if they might inherit these costs upon completion.
Funding and Lenders: If you are using a mortgage or bridging loan to fund an auction purchase, your lender will likely require a valid search to be in place. If the search in the pack is a "Personal" or "Regulated" version, it is worth confirming that your specific lender accepts that provider.
Why This Matters
The information in a local authority search allows a bidder to make a more informed decision on their maximum bid. By identifying potential costs or restrictions early, you can factor these into your financial planning before the auction begins.
Before you bid: We recommend downloading the Legal Pack for your lot of interest and reviewing the LLC1 and CON29 forms with your legal advisor.