Pre-completion searches

Pre-completion searches

searches carried out just before completion to protect buyer’s title

Purpose of pre-completion searches

ensure buyer can obtain and register good title

Difference from pre-exchange searches

not investigative, but protective

Focus of pre-completion searches

property + parties

Registered land search

OS1 (whole) or OS2 (part)

OS1 purpose

update title and reveal new entries

OS1 priority

30 working days

Effect of OS1

buyer’s registration takes priority over later applications

Key requirement

register within priority period

Search from date

date of official copies used to check updates

Clear result

no changes since that date

Unregistered land search

Land Charges search (K15)

K15 purpose

reveal incumbrances against seller

K15 priority

15 working days

K15 priority rule

completion (not registration) must occur within period

Land charges search timing

carried out against seller just before completion

Priority risk

failure to search may allow third party interests to override buyer

Professional negligence risk

failure to carry out OS1

Example risk

seller remortgages before completion

Protection

OS1 prevents new charge taking priority

Solvency search (buyer)

bankruptcy search (K16)

Purpose (K16)

protect lender from insolvent buyer

Company search (buyer)

checks insolvency and floating charges

Company search (seller)

checks company still valid and not insolvent

Company search priority

no priority period

Timing

carried out immediately before completion

Key exam point

OS1 = registered land protection

Key exam point unregistered

K15 = unregistered land protection

Key exam point 3

K16 = protects lender

Key exam point co

company search = no priority, just information

Failure to register priority search

buyer loses priority protection

Consequence of failure to register

third party interests can override buyer’s title