Commercial property searches: why you can't afford to skip them

Searches may seem unnecessary due to the additional time and cost involved, but they play a crucial role in uncovering potential risks and liabilities associated with commercial property transactions.

This article briefly outlines some of the searches you may encounter. Of course, you may not require all the searches below - it all depends on the area and type of property you're dealing with.

Local authority search

When buying or leasing a commercial property, a local authority search is crucial as it provides essential information about the property and its surroundings. 

The local authority search reveals details such as planning permissions, building regulations approvals, proposed road schemes, environmental notices, and whether the property is in a conservation area or is a listed building. Importantly, this search helps assess potential restrictions on alterations and developments, liabilities, and financial implications associated with the property.

Additionally, searching the local land charges register will provide insights such as compulsory orders, planning enforcement notices, tree preservation orders, and financial charges registered against the property.

Highways search

A highways search is important when purchasing or leasing a commercial property as it shows rights of access to the property. Given the importance of road access and transportation considerations for businesses, conducting this search is a standard practice in many transactions.

It confirms whether the property abuts a publicly maintained highway without any privately owned land or obstacles. This search will highlight any public footpaths on or over the property, ransom strips, or encroachments that could hinder your access or future development plans.

If a property abuts a road that is not a publicly maintained highway, further enquiries will need to be made into the maintenance and right of access over the road. 

Drainage and water search

The drainage and water search reveals whether or not the property is connected to mains, foul and surface water sewers and confirms whether the property is connected to a water main. It also provides a map of the location of the public sewers, mains and pipes within the property or within 100m of the property, along with details of any private sewer or drain maintenance responsibilities and liabilities. 

Environmental search

Conducting an environmental search helps assess land contamination risk by gathering information from regulatory bodies, floodplain data, and a review of historical land use. 

If contamination is detected, the current landowner may be responsible for remediation costs, especially if the party responsible cannot be identified. This search also determines if the property is within a radon-affected area, near any active railways, or at risk of ground subsidence. 

Flood risk search

A flood risk search evaluates the property's susceptibility to different types of flooding, including river, coastal, groundwater, and surface water flooding. Understanding the flood risk is crucial for property valuation and determining suitable insurance coverage. If the property you are purchasing or leasing is within a potential flood risk area, this will be revealed in the environmental search. You can then carry out a more in-depth flood risk search if necessary. 

Coal mining search

Coal mining searches in commercial property transactions are relatively rare, dependent on the location's historical mining activity. They assess risks and liabilities related to coal mining, such as subsidence or contamination. Regions with significant mining history may require them, but they are infrequent in areas with little mining.

Chancel repair search

Chancel repair searches are also relatively rare in commercial property transactions. This search determines whether the property owner may be liable for contributing to the cost of repairs to a local parish church. 

These obligations are not widely known, but they originate from medieval times and, in essence, allow some medieval churches to claim from local properties for the upkeep and repair of the chancel (part of the church). 

If the search confirms such liability, obtaining chancel repair indemnity insurance is advisable, particularly when financing is involved.

Utilities search

An extensive utilities search, including electricity, gas distribution, telecoms, and drainage and water searches, is crucial when considering site development. It provides information about existing connections, enabling informed decisions during property development.

Contact our commercial property solicitors

Our solicitors are available to help you understand commercial property searches and know what steps to take to protect yourself during a transaction.

We have commercial property solicitors in Brighton, London, East Sussex, and Cumbria, and we work with clients locally and nationally.