House Sale - Woodland Grant Problems

readinger

In our previous house we planted a few acres of woodland for which we were paid grants by the Forestry Commission and annual payments by Defra. The new owners intended to clear the woodland to make paddocks, so we signed transfer documents for them to take over the rights and responsibilities of the woodland and a paragraph obliging them to make the transfers was written into to the sale contract.

Now two years later we are being chased by the Forestry Commission for repayment of the money as it turns out that the buyers failed to complete the FC and (presumably) the Defra transfer forms. Has anyone had a similar experience and can anyone advise us on possible ways forward on this?

PasturesNew

With no idea whatsoever, this sounds like a job for your solicitor. For him to write to them pointing out the obligations etc.

But, as I said, I have no idea... but it was part of the sale conditions/paperwork so it seems most sensible to me that your solicitor who dealt with that should be the first port of call to knock them out a quick letter.

readinger

Thank you for your quick reply. The solicitor has written several letters to which he has received no reply. The Forestry Commission are losing patience and are about to pass it to their legal people.

The solicitor has said that we need to decide whether to initiate proceedings ourselves or wait until the FC take us to court and then join the buyers into the case. I am hoping that a discussion here might help us to make a decision when we next talk to the solicitor.

poppysarah

They bought a house with caveats about land usage but decided not to take any notice?
I spose the problem is you're the ones out of pocket now but perhaps it's only because they've not transfered the land on the forms.

If the land is theirs because it's on the house deeds then surely it's their problem.

The transfer of names on forms should be looked at - and you'll have to sue them maybe for the loss? Sounds like it might be tricky - and something your original solicitor should have reckoned on being a problem for you.

Incisor

Solicitor job. You now need to take action against your buyers, I would suggest, to get the Forestry Commission to give you some space. Court order for compliance with the conditions of the sale? [IANAL]

readinger

poppysarah wrote: »

If the land is theirs because it's on the house deeds then surely it's their problem.

Unfortunately it remains our problem until either the the buyers sign the transfer forms or the money is paid back. It is not on the deeds; we asked for a clause to be put into the contract as we had a feeling that there might be problems (we were right!).

Apparently these grants are independent of ownership. For example, it is possible to lease land and apply for the grants.

readinger

Incisor wrote: »

Solicitor job. You now need to take action against your buyers, I would suggest, to get the Forestry Commission to give you some space. Court order for compliance with the conditions of the sale? [IANAL]

Yes, it is with the solicitor. I think that the FC will not allow much more time. We hoped that the threat of action would make the buyers accept their responsibility, but they (through their solicitor) have failed to make any response. This is over several months with two or three reminders.

The options now seem to be waiting for the FC to start action against us and then joining the buyers or for us to initiate proceedings. We are interested in ideas from kind people on this board to clarify our options before we speak to the solicitor at the end of next week.

poppysarah

So the land ownership is not on the deeds nor the rules on keeping it wooded or them having to pay the money back? That sounds like your solicitor who help you sell the property didn't do what he should have done. It should have been done in a watertight way.

If they've not transfered the ownership paperwork of the land then sue them for damages to your land?

Incisor

readinger wrote: »

Yes, it is with the solicitor. I think that the FC will not allow much more time. We hoped that the threat of action would make the buyers accept their responsibility, but they (through their solicitor) have failed to make any response. This is over several months with two or three reminders.

The options now seem to be waiting for the FC to start action against us and then joining the buyers or for us to initiate proceedings. We are interested in ideas from kind people on this board to clarify our options before we speak to the solicitor at the end of next week.

It's probably outside of most people's experience, but it looks like you have just those 2 options.

The advantage of joining with the FC is that you will be on the same side as them. The disadvantage is that you may be constrained to seeking the same results as they are. If you take action against your buyers, you might be able to choose the remedy [cash, return of the land, order to comply with contract]

A further thought is why are they not complying? Are they nearing repo? You may want to consider involving their lender [if it is mortgaged] - or it may be that the land is insulated from the contract clause and you might end up suing your buyers after they have been repo'd.

Sorry, no actual advice here, just further angles to take into account.

GDB2222

Why did your solicitor not insist on these forms being signed at completion? You may need an independent solicitor to advise.

GDB2222

BTW, are you talking about many thousands of Pounds?