{"id":143841,"date":"2024-09-20T08:30:05","date_gmt":"2024-09-20T07:30:05","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=143841"},"modified":"2024-09-19T17:27:59","modified_gmt":"2024-09-19T16:27:59","slug":"how-to-reduce-risk-and-disputes-over-plot-plans-for-new-builds","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/how-to-reduce-risk-and-disputes-over-plot-plans-for-new-builds\/143841\/","title":{"rendered":"How to reduce risk and disputes over plot plans for new builds"},"content":{"rendered":"

Boundary disputes over plot plans are a common issue that can have costly implications and cause delays. Tina Khanna, conveyancing director of RG Law<\/a>, shares some simple steps that can help avoid wasted costs and delays in the lifecycle of a development<\/h2>\n

The legal boundary may correlate precisely with the physical boundary, but it could just as easily run along one particular side of a structure or hedge. For example, it may include all or any part of an adjoining roadway, footpath, stream, or ditch. On the other hand, a physical boundary might have no resemblance to the legal boundary whatsoever and may have been erected well inside or outside the legal boundary.<\/p>\n

Example case:<\/h4>\n

Earlier this year, we were instructed by a purchaser of a new build property where a late discrepancy was revealed in the plot plan. During the transaction, a plan was provided for the property which reflected the true boundaries of the plot on the ground and was agreed by our client.<\/p>\n

However, in preparation for exchange and as part of a final file review and pre completion searches with the land registry, it was revealed that part of the garden included in the plot plan was not actually owned by the developer. This small section of land had been transferred in error from the developer to a third party with a different plot sale.<\/p>\n

The Developer\u2019s Solicitors exerted a lot of pressure to complete the transaction regardless of this issue using the original plot plan. This was based solely on their, reassurances that this would be resolved post completion. However, we had to balance this alongside acting in the best interests of the client and mortgage lender.<\/p>\n

The client had to be carefully advised of the repercussions of proceeding to exchange of contracts without this area of land being included. Whilst the developer\u2019s solicitors had provided reassurances around this, the legal position at the time of exchange would be that this small parcel of land, that fell within the physical boundaries of the property they were purchasing, was no longer owned by the developer. Hence it would not be included in our client\u2019s purchase transaction.<\/p>\n

The solution was for a new plan to be agreed that did correspond with the legal position and the small area had to be removed from the revised plan. This new plan needed to be approved by the client\u2019s mortgage lender and the client needed to be advised clearly and carefully of the true and current boundaries of the property. Once resolved the transaction could complete safely with the client and their lender fully protected.<\/p>\n

Key considerations:<\/h4>\n

When a developer plans to sell off-plan sites, the proposed master conveyance plan should be submitted to the Land Registry for “estate boundary approval.” This approval provides certainty that the boundaries of all plots fall within the developer\u2019s legal title. Conveyancers acting for purchasers will expect to see estate boundary approval within the sales pack. If the same underlying location plan has been used throughout the legal and planning process, no discrepancies should be revealed.<\/p>\n

If material discrepancies are revealed, potential solutions should be considered. These may include:<\/p>\n