A local authority can use bankruptcy as a method of debt collection, when dealing with council tax arrears. However, there are certain circumstances in which such a course of action will be frowned upon by the courts. 


Competition law will apply to property transactions from 6 April 2011, which means that anti-competitive restrictions will be unenforceable. 


Note, however, that this applies only to commercial (not domestic) transactions, and the vast majority of agreements will not be caught. What is important to appreciate, however, is that this change has retrospective effect: it will apply to existing arrangements that continue beyond 6 April 2011 (eg to a 25-year lease agreed with an anchor tenant in 2000 which prevents competing use). 


In practice, most of the attention is likely to be on the scope of the exemption, which is available if all four of the following conditions apply: (i) agreement contributes to improving production, distribution, or to promoting economic progress; (ii) allows consumers a fair share of the resulting benefits; (iii) it does not impose restrictions other than ‘indispensable’ ones; (iv) it will not eliminate competition. These are OFT illustrations from their recent consultative document: 


A reminder that inaccurate property particulars can lead to a prosecution under Property Misdescriptions Act 1991.

Liability under the Act is strict, and there is no need to prove any intention to mislead. The Act applies to any false or misleading statement in the course of estate agency or property development business. Although many commercial agents may not consider themselves to be estate agents, the definition of an estate agency business is by reference to the Estate Agents Act 1979 and effectively means taking instructions from a client with a view to introducing a potential purchaser or vendor, and then acting to secure for that client the acquisition or disposal of an interest in the property.

As far as non-domestic rates are concerned, LAs are required to serve rating notices ‘on or as soon as practicable after 1 April in the relevant year’. So, what happens if there is delay in the LA serving the rating demand?

A recent case serves as a useful reminder of the need for early notification to insurers when there is property damage.

The insurance policy required the insured to give ‘immediate’ notice of any ‘injury or damage in consequence of which a claim may be made under the policy’.

A standardised commercial property drainage and water enquiries form will be launched shortly. The same form will be used by all the water companies.

Some solicitors still see HIPs as solely the responsibility of the estate agent. That is, of course, completely wrong.

The requirements fall upon the seller (ie the client) and so cannot be ignored. In particular, consider the implications of Reg 5 of the Energy Performance of Buildings Regs 2007. This imposes a duty on the seller where a building is to be sold to make available, free of charge, a valid energy performance certificate to any prospective buyer (a) at the earliest opportunity and (b) in any event before entering into a contract to sell. Under Reg 5(5) the seller has to ensure that a valid certificate has been given free of charge to the person who ultimately becomes the buyer. So the seller’s solicitors should not exchange without first checking that the buyer has seen the EPC.

The Building Societies Association issued its own standard set of mortgage instructions at the beginning of January. This is partly because some building societies want to remain independent of the Council of Mortgage Lenders, whilst others are reluctant to pay the higher fees charged by the CML. The end result is that we now have a second set of standard instructions – although, in practice, the differences are minor.

Sewage adoption agreements are covered by s104 Water Industry Act 1991. In essence, anyone who is constructing a sewer can ask an undertaker to enter into an agreement where the undertaker will make a vesting declaration, adopting the sewer at some specified date after the work is completed. Needless to say, it is important to reach agreement on this before the development commences. Ofwat guidance says that sewers should be adopted if all these criteria are satisfied:

If a property does not have mains drainage, then (assuming no s104 agreement for adoption is in place) it will be important to check the type of drainage. This is because it may be necessary to obtain consent from the Environment Agency (if the system is discharging effluent into the land, or into an adjacent water course).

Do not forget that there is usually a £5,000 liability limit in respect of the standard drainage and water inquiries (CON 29 DW) for residential properties.

As flooding becomes more of an issue for conveyancers, to what extent can you rely upon the flood map posted on the Environment Agency website? It is important to understand the map’s limitations:

it does not show potential flooding from ground or surface water;

If an Energy Performance Certificate has not been produced, is it acceptable to put a clause in the contract saying that the EPC will be produced before completion?

The fee for a personal search of the Local Land Charges Register doubles to £22 on 1 January 2010.