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  • FIRST POST
    • youknowwho
    • By youknowwho 25th Sep 17, 12:33 PM
    • 252Posts
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    youknowwho
    Bought a new build but builder didn't own all of the land....
    • #1
    • 25th Sep 17, 12:33 PM
    Bought a new build but builder didn't own all of the land.... 25th Sep 17 at 12:33 PM
    Hi all,

    I'm looking for some advice; I purchased a new build house in 2014 after trying to sell this year it cane to light that the house has been built on land that the builder didn't own in full. The majority of the plot has been registered in my name with the land registry, however there are 2 small pieces of land that fall within our fence line that we do not own. One piece is owned by another company (under a leasehold) and the other part is not registered to anyone so the LR have only given us Good Leasehold for it. Was the solicitor that I used not supposed to have filled in a TP1 (transfer of part title) before we completed to make sure that plot we were buying was in fact owned by the builder? Have the solicitors been negligent and what rights do I have? The solicitors knew about this post completion as they then tried to register us with the plot and it was THEN they LR advised of the issues. The solicitors just swept it under the carpet and never told me. Really would appreciate some professional advice, thank you.
    Last edited by youknowwho; 25-09-2017 at 12:36 PM.
    Halifax CC £1322.88 £0 11.9% Virgin CC £1534.76 £1384.76 0% until AUG 13. Grant over payment £166.66 £0 DFD 31 JUL 13 #102
    Weight 164lbs 05 May 164lbs Target 146lbs by 30 JUN 13

    Happiness is a way of life not a destination.
Page 2
    • HouseBuyer77
    • By HouseBuyer77 26th Sep 17, 9:57 AM
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    • 893 Thanks
    HouseBuyer77
    It was only after completion that the solicitors tried to register the plot with the LR, then they realised the mess up. I have received my whole file from the solicitors and it shows all of this was dwicivered post completion as there were plenty of emails basically saying how they have messed up.
    So they were aware they messed up but did not inform you? If they did tell you, didn't you chase it up at the time?
    • AlexMac
    • By AlexMac 26th Sep 17, 9:59 AM
    • 1,957 Posts
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    AlexMac
    Going back to the question; should the solicitors have checked this...and if so, are they liable for the consequences of their (in)action...?

    I'd have said yes, and that after pursuing their complaints procedure, including asking for redress for the financial loss you have experienced as a result of their negligence, then consider wheter you are prepared to follow through the action which DoctorGoogle will outline to you, up to and including engaging another solicitor to sue for recompense which will presumably, if sucessful, be covered by their professional indemnity.

    Be sure of your ground however (no pun intended). Look back through their advice and report on title.

    My solicitors have been amazingly thorough in briefing me on any likely problems with the title; in one case, insisting the vendor pay to remedy a minor ambiguity about whether part of the lowered terrace adjacent to my front door was communally owned as part of a shared freehold, or personal to us.

    My last purchase process included the solicitor emailing me a copy of the Land Registry title plan, and insisting that I inspect the property and garden to confirm what I was buying was as described. She even got me to check that a couple of TPO (Protected) trees were in place, which meant a call to the Council Planning Dept's trees officer to get a copy of their site plan as this wasn't in the conveyancing pack.

    So make sure your solicitor didn't cover their raas in a similar way by putting the onus on you; even if they weren't as thorough as mine they might have slipped some weasle words into the report which they'd have insited you read before exchange!

    Good luck
    • davidmcn
    • By davidmcn 26th Sep 17, 10:11 AM
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    davidmcn
    I'm not sure what loss the OP has suffered, or why they think they can't sell, as it sounds like their solicitors have already arranged indemnity insurance. Obviously they ought to get a title which matches where the fences are, but not having a squeaky clean title to odd bits at the bottom of the garden (if that's what we're talking about) isn't the end of the world, or something which has much effect on the value of your property.
    • youknowwho
    • By youknowwho 26th Sep 17, 1:47 PM
    • 252 Posts
    • 336 Thanks
    youknowwho
    Yes they were recommended by the builder.... they said that all the legal paperwork was with them already and it would be easier... in hindsight, I wish I had sourced my own!

    I checked the boundary against the plot plan - there was no title plan yet as it was a new build. I checked it against the info I was provided, that matches.

    I know for a fact that the solicitor did not know these issues existed either as why would they have tried to register the property identical to the plot plan, it was only when the LR rejected the application that this all came to light.

    I have suffered financial loss as i have had a house sale fall through BECAUSE of these issues and I have had to put tenants in the property. Before I put tenants in, I ran it empty while looking for a buyer and if I'd have know about these issues I would have put a tenant in straight away, which covers the mortgage, then I could have sorted this out without incurring any losses.

    The solicitors have provided indemnity, but this could still put off prospective buyers in the future and who knows about the piece of land owned by someone else.

    Thank you for you comments/suggestions.
    Halifax CC £1322.88 £0 11.9% Virgin CC £1534.76 £1384.76 0% until AUG 13. Grant over payment £166.66 £0 DFD 31 JUL 13 #102
    Weight 164lbs 05 May 164lbs Target 146lbs by 30 JUN 13

    Happiness is a way of life not a destination.
    • ThePants999
    • By ThePants999 26th Sep 17, 2:10 PM
    • 898 Posts
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    ThePants999
    I'm not sure what loss the OP has suffered, or why they think they can't sell
    Originally posted by davidmcn
    Well, I wouldn't buy it, for starters!
    • davidmcn
    • By davidmcn 26th Sep 17, 2:28 PM
    • 6,245 Posts
    • 6,026 Thanks
    davidmcn
    I have suffered financial loss as i have had a house sale fall through BECAUSE of these issues
    Originally posted by youknowwho
    Was that just their convenient excuse to pull out, or have you had advice that objectively the title is unmarketable?

    The solicitors have provided indemnity, but this could still put off prospective buyers in the future
    But is unlikely to if they've had proper advice.

    Worst case scenario (as far as I can tell) is that you'd lose a bit (not sure what proportion) of your garden and have to shift a fence or two. But what are the chances of whoever has the legal title coming to claim occupancy of it?

    If it was a title issue affecting the house itself or access to it then it would be a more serious matter.

    What remedy are you seeking? If you can show that the market value of the property is actually lower (e.g. because the bit of garden is worth £x) then that may be a claim.
    • oceanmum
    • By oceanmum 8th Oct 17, 7:21 PM
    • 9 Posts
    • 0 Thanks
    oceanmum
    i am in a similar situation... part of my house is on the blue part which the builders a big national company gave me interest and titles that they said they had but they dont appear to have had absolute or posessory tile.. i didnt know this until I came to sell and had a tenant in for last 3 of the 2 years... i am absolutely lost...my lawyers cause this 12 years ago and i dont know if i can appeal if i dont get possessory title
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