Charging Order? The myth

Hi Eggbox,
Does a creditor have any obligation to keep me informed of the debt, with a charge on my property, that is accruing interest, or is it up to me to ask them for up-dates? Do they have to keep me informed of how much it is?
Thanks, Choochy baby

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Googly_eye wrote: »

One solicitor has advised that to try and get a head of the game I am required to contact the creditors and advise them that we are selling the property and to obtain a letter from them to advise that they have been informed of our forth coming disposition. From reading this thread it appears that the creditor should be advised direct from our solicitor

The solicitor giving the above advice is, almost certainly, assuming that you are going to pay the debts owed from the sale proceeds? If that is not your intention then, as the seller, you (or your solicitor) aren't required to contact any creditors involved.

This thread also explains that, for a Standard Form K Restriction, it is the BUYER or his Solicitor that is required to inform any creditors of the sale NOT the seller.

This is because the wording, in the terms of the Restriction, explains that it must be the Buyer (or his agent) that certifies they have informed the creditor of the sale (to the Land Registry) not the seller.

DAKOTA45 wrote: »

I just wanted to put something on here which proves that solicitors are fully clued up about restrictions… it's a statement by Bloke Moron LLP saying that a Form K provides no security… it was used in a 'Without Notice' application to the court as a reason to request a modification to the the Form K Charging Order, as, without modification, the Judgement Creditor has no security for the debt because he is only notified after disposition.
This firm wrote about the uselessness of Restrictions some time ago, but the link seems to have disappeared.
I wonder if we will see more 'modifications' as time goes on?

Hi Dakota

I think what you are referring to only proves Bloke Moron understood the implications of the Form K Restrictions limitations, not solicitors in general? We've seen posters here explain they have contacted, literally, over a dozen solicitors and discover none of them understand why a Form K is (or should be) such weak security for the creditor. So I think that proves BM were a one off?

Also, the passage you refer to that BM wrote, explaining for the legal community exactly why a Form K is (or, again, should be) useless to the creditor, disappeared when debtors began using the information provided to their advantage and began selling without paying up.

The passage you refer to did, actually, sway the solicitor used by Brightonian (a fellow poster on here who sold without settling the CO's) as it was a Law firm explaining the weakness of the Form K Restriction?

But with regard to the "modifications" you refer to; I'd keep quiet about those as any Solicitors reading this thread may not realise they can be applied for?

eggbox wrote: »

The solicitor giving the above advice is, almost certainly, assuming that you are going to pay the debts owed from the sale proceeds? If that is not your intention then, as the seller, you (or your solicitor) aren't required to contact any creditors involved.

This thread also explains that, for a Standard Form K Restriction, it is the BUYER or his Solicitor that is required to inform any creditors of the sale NOT the seller.

This is because the wording, in the terms of the Restriction, explains that it must be the Buyer (or his agent) that certifies they have informed the creditor of the sale (to the Land Registry) not the seller.

Sorry one more question and probably an obvious answer but one must ask - What if the buyer or his agent refuses to make contact with the creditors, I am presuming the sale will fall through? If that is the case is there anything I could do to intervene, apart from paying off the restrictions, which I cant do? Thanks