Once all reports from the checks, searches and surveys are reviewed, the buyer’s solicitor will raise enquiries with the seller’s solicitor. This is also a big step in the process as it may take a few weeks for all replies to be received or all issues resolved. Some lawyers would await to have all reports back before reviewing the entire paperwork and raise all enquiries at once while others prefer to raise enquiries in stages as soon as a set of documents is available, for example the title pack, the searches, the surveys, any leasehold packs, etc.
The main enquiries are usually related to the entries on the title deed, such as rights and obligations (known as covenants) stated to benefit or burden the property. It is very important to establish whether all rights have been exercised freely and to obtain details of any third parties exercising rights over the property. It is also important for the seller to confirm they have not breached any of the covenants contained on the title.
Further enquiries are raised in relation to any adverse entries on the official searches such as evidence of any recent flood or subsidence incidents, copies of tree preservation orders, planning permissions and building control approval, etc which have not been provided as part of the contract pack.
Another set of enquiries may be needed in relation to the Landlord’s pack and/or the management company’s pack (as applicable) if the property is leasehold or new build. Their packs usually contain information about the management of the building or the estate, the amount of ground rent and service charge, how it is collected and how it is spent, a copy of the buildings insurance policy, three years’ accounts and most importantly their requirements to register the change of ownership after completion. Sometimes it is not clean from the pack how the common areas are accessed for example, or whether the insurance contributions are part of the service charge, whether the buyers need to enter into any direct deeds with the landlord and/or the management company and what, if any, fees they need to pay on completion.
Finally, the buyer’s solicitor may ask whether the seller is also buying a property simultaneously with their sale and if so, at what stage is their purchase so as to to determine the approximate dates for possible completion, for example whether it would be the current month or the following.
If the buyers have any final remarks or requirements for the seller before contracts are exchanged, this would be the final opportunity for this as after exchange of contracts, the seller is no longer obliged to provide further replies or undertake additional tasks.
The process of raising enquiries and receiving replies can take a few weeks especially if any third parties need to be involved in the resolution of any revealed discrepancies such as the local council, the window and door’s installer, the engineer who did the last gas or electricity installation check and so on. Estate agents would frequently check the progress of this step as they know it is the last one before the deal becoming certain i.e exchanging the contracts.
The buyer’s solicitors need to provide a copy of the enquiries they have raised and the replies they have received to their clients, or to summarise them in their Report on Title and Contract.