Buying a Repossesion

RICHARD83_3

Hi, i hope some of you may be able to advise me, me and my partner are currently going through a purchase for a repossesion property. we have had an offer accepted and are about 2 weeks in to the process. yesterday i got a letter from my solicitor saying she reccomended that i find out who all of the utility bills are supplied by as we will be responsible for any outstanding arrears once we complete. Is this the case? As surely those sorts of debts are down to the previous occupior. If this is the case how do i go about finding out what arrears are out standing. Any help would be much appreciated.

Thanks, Richard.

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gotenks1321

As far as I know all arrears belong to the people not the house. I know this as I was in a similiar situation with a flat I moved into although that was rented. I'm sure someone more knowledgeable will be along shortly though You may need to write a letter to the companies as they will try and get you to pay them though :rolleyes:

RICHARD83_3

Ithought that was the case but i was told its different rules as its a reposession property

bubblesmoney

insist on a clause in the contract that the seller is responsible for clearing all bills and any debts secured on the property before completion. such a clause should protect u from any surprises. make a note of all meter readings as on completion and that all prior bills outstanding amounts will be paid by seller. souldnt your solicitor be doing that instead of asking u to find out what the outstandings are etc.

Premier_2

bubblesmoney wrote: »

insist on a clause in the contract that the seller is responsible for clearing all bills and any debts secured on the property before completion. such a clause should protect u from any surprises. make a note of all meter readings as on completion and that all prior bills outstanding amounts will be paid by seller. souldnt your solicitor be doing that instead of asking u to find out what the outstandings are etc.

I doubt there's much room for any negotiation on the terms of the sale. Banks etc who sell repossessed properties tend to be about as amenable to deviating from, their standard contract as large developers are. i.e. here's the sale contract - take it or leave it.

The bank certainly won't undertake to ensure all bills and debts secured on the property are cleared before completion. The bank wants it's own money back first & foremost (which it may not even get depending on the sale price) it won't be paying off any other companies with debts secured on the property. They will be paid if there is any surplus and any remaining (if any) then being passed back to the original owner.

As a buyer, your solicitor will ensure you own the property without any charges attached to it (except for your own mortgage). Any previous bills are not yours and should be returned to sender marked 'no longer at this address'.

Premier_2

RICHARD83 wrote: »

...yesterday i got a letter from my solicitor saying she reccomended that i find out who all of the utility bills are supplied by as we will be responsible for any outstanding arrears once we complete. ...

Time to get yourself a new solicitor!

RICHARD83_3

it was my solicitor who has advised me that i will be responsible. she said it in a letter which she wrote highlighting some of the points in the contract paperwork she recieved from the sellers solicitors. Her exact words on the letter are

'The lender accepts no responsibility for any outstanding utility bills up to the date of completion. I would therefore suggest that you ask the estate agents for details of all of the utility suppliers to try and establish whether the accounts are in arrears, as these will become your responsibility on completion, irrespective of the fact that you were not the ones to benefit from the services'.

to me that says i will definately be responsible. I knew it was all going to smoothly...

RICHARD83_3

Premier wrote: »

Time to get yourself a new solicitor!

thats easier said than done, we have to complete in two weeks or risk losing the property.

bubblesmoney

Premier wrote: »

As a buyer, your solicitor will ensure you own the property without any charges attached to it (except for your own mortgage). Any previous bills are not yours and should be returned to sender marked 'no longer at this address'.

Richard wrote:

yesterday i got a letter from my solicitor saying she reccomended that i find out who all of the utility bills are supplied by as we will be responsible for any outstanding arrears once we complete.

i think richards solicitor is talking !!!!!. isnt that what a buyers conveyancing solicitor is paid for to ensure that the property is coming clean without any strings attached, i cant understand this solicitors logic of asking the buyer to sort out the debts (utility bills outstanding) of the seller. there is no way a buyer can fully confirm what debts are outstanding on a seller. that is the reason why a clause is needed in sale i feel or atleast better advice from another solicitor who can confirm that any debts owed by others wont fall on the buyer. otherwise the buyer opens himself liable for unlimited debt from unpaid bills and interest etc. how can a solicitor say that buyer will be responsible for debts of others just because one buys a property from them.

SouthCoast

Is the property in Scotland as the advice is rubbish as far as English law is concerned?

A £3 search at the Land Registry will reveal all the outstanding charges on the property.

I guess that you will be aware that you will have debt collectors knocking on your door for the next six years trying to trace the original owners.

bubblesmoney

SouthCoast wrote: »

Is the property in Scotland as the advice is rubbish as far as English law is concerned?

A £3 search at the Land Registry will reveal all the outstanding charges on the property.

i doubt these outstanding charges will show any outstanding utility bills etc. can u confirm if they actually show these as well???