Identify why you would undertake a Company Search against the seller, when you would undertake such a search and what information it would provide.

• A. It is required by mortgage lenders; post-exchange/pre-completion; confirms existence, not struck off, and not being wound up
• B. It is optional and can be done after completion
• C. It only checks the director’s ages
• D. It is done at the day of completion

Answer: (A)

When the seller is a company, you must verify that the entity actually exists and is capable of completing the transfer. A Company Search provides that assurance by confirming the company is still on the register as active, not struck off, and not in liquidation or winding up.

You would typically carry out this search after exchange and before completion. Once the contract is binding, you want to be sure the seller’s legal entity remains in good standing and able to transfer title and deliver vacant possession (and that the mortgage lender’s security remains valid). If the company were dissolved or in liquidation between exchange and completion, the deal could unravel.

The information the search provides includes the company’s current status (active, dissolved, or struck off), registered office address, company type, date of incorporation, and sometimes details about directors and recent filing history (such as accounts or charges). It also helps confirm the seller is the proper legal entity to deal with and that there have been no corporate changes that would affect ownership or title.

This is why mortgage lenders often require a Company Search: it gives a clear check that the seller remains a valid, continuing entity capable of completing the sale and that their ability to transfer the title and secure the loan won’t be compromised. It’s not about directors’ ages, not something done only on completion day, and not optional.