Introduction
Local searches form a key part of the legal due diligence process when buying commercial property. They are designed to uncover issues that may affect the property’s use, value or future marketability.
Searches are usually carried out by the buyer’s solicitor once Heads of Terms have been agreed
What Are Local Searches?
Local searches involve enquiries made to local authorities and other bodies to identify matters affecting the property.
They typically reveal:
- Planning history and restrictions
- Building regulation compliance
- Road access and adoption status
- Compulsory purchase proposals
- Local authority charges
These searches help buyers understand what they are acquiring beyond what is visible on inspection.
1. Common searches in commercial transactions
The searches required will depend on the property type, location and intended use, but commonly include:
- Local authority search
- Drainage and water search
- Environmental search
- Highways search
Additional specialist searches may be recommended for certain properties, such as industrial or development sites.
2. Planning and use considerations
Searches will confirm:
- Existing planning permissions
- Planning conditions or restrictions
- Enforcement notices
- Whether the current or intended use is authorised
This is particularly important where the buyer intends to change use or redevelop the property.
3. Environmental and contamination issues
Environmental searches assess potential risks such as:
- Land contamination
- Flood risk
- Proximity to hazardous sites
Where issues are identified, further investigation or reports may be required before proceeding.
4. Searches and timescales
Local searches can take:
- Several days
- Or several weeks
Timescales vary depending on the local authority and the complexity of the transaction. Delays at this stage are common and should be factored into completion planning.
5. Interpreting search results
Search results do not automatically prevent a transaction from proceeding.
Instead, they:
- Inform risk assessment
- Guide negotiation
- Highlight issues requiring legal protection
Solicitors will advise on whether issues can be resolved, insured against or renegotiated.
Costs of Searches
Search costs are typically paid by the buyer and vary depending on:
- Number of searches required
- Location
- Property type
These costs should be included in transaction budgeting.
What Comes Next
Once searches and enquiries are satisfied, the transaction moves toward exchange and completion.
This is covered in the final section:
Exchange of Contracts and Completion on a Commercial Property.
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