Buying a repossession - weird clause in contract

hethmar

Very odd isnt it. You dont allow people to inspect your home after you have bought it - this sounds like a rental agreement rather than a sale.

Surely your solicitor should be onto this like a bat out of hell? Dont sign or exchange anything and hold back on spending any more money until this is sorted once and for all. Dont let the other side push you into anything.

neilmk

Thanks again guys for your comments, its really appreciated.

Just back from our 3rd viewing of the property and it seems in very good condition. There are no remaining items in the property other than those screwed down and a 3 legged bench in the garden

To the best of our knowledge there is nothing strange about the property. It was built in 2006, repossessed around May this year and has been on the market since.

We are going to write to our solicitor explaining that we are not happy to proceed unless they remove the clause relating to visiting the property, arrange for the transfer deeds to be handed over at completion and that certificates for planning permission and the warranty are available. I believe we also require a copy of the transfer which contains details of any restrictive covenants that may be in place, although im not sure if this is the same as the transfer deeds?

Thanks so much again, renting is a breeze compared to this!

Cat695

your not buying this under shared ownership are you?? because surely that would be the only reason why the company would want to inspect the place

Sounds very odd

Wanted to add not you that sounds odd but their request

hethmar

Well done for getting everything sorted out in your mind - I cant understand why such a strange clause should be in there, except its some silly error - they do happen - sons recent repo purchase had something about paying £500 towards the maintenance of the lift service - there was no lift service in his block which is only 2 storeys high - the solicitor was being pressured to exchange but wouldnt until this was sorted - they said it was an error, they were using a standardised contract. So well done you for sticking to your guns.

markelock

your solicitor sounds poor. I doubt anyone involved can be bothered to do anything other than complete and get their invoices out to you ASAP.

when you receive their (solicitors) final bill, I'd check it. and if it's too high, negotiate down. they can be referred to the law commission who look at solicitors pricing.

otherwise it's money for nothing.

neilmk

So are you saying that we have to pay for the sellers solicitors fees?

No one has mentioned that to us?

I appreciate we are paying for searches and certificates etc but what about the sellers solicitors time?

Thanks.

edgex

neilmk wrote: »

...
They have also not provided any searches, planning permission, warranty certificates or transfer details saying that these must be obtained by us at our costs.

These should be in the HIP.
Have they not given you a copy of the HIP? If not, ask why not!

They are probably trying to push it through as from the new year they have to have a HIP to sell the place.

Jorgan_2

edgex wrote: »

These should be in the HIP.
Have they not given you a copy of the HIP? If not, ask why not!

They are probably trying to push it through as from the new year they have to have a HIP to sell the place.

Calm down, the HIP may not be complete yet, or a HIP may not even be required if the property is exempt from a HIP.

neilmk

Hi, yes we have a HIP which our solicitor has sent to us, however in a letter from our solicitor to the sellers solicitor it says

'With regard to the draft Contract and copy supporting title documentation you have issued to us, we note that no planning permission for the original construction of the property in 2006 has been provided nor have you provided a copy of the warranty certificate or indeed the Transfer which contains restrictive covenants dated 22 Dec 2006.'

So im assuming whatever is in the HIP pack is not enough or not present, ive looked through and can find nothing relating to the above.

MegS

HIPs are not required to include planning permissions etc only local authority search and drainage search. When our clients have bought repo's it is usual that a lot of information is missing and that the solicitors acting for the lender will not pay to provide any such information. The lenders are usually of the opinion that if you want the property then you do all the extras as they don't care whether the property is sold now or later in auction. We have also had the Transfer clause before. Something new is the inspecting of the property after completion. Can't help you there I'm afraid, may be worth querying that one. As it is only two days (I presume you mean in the same week for reconnection of services) between exchange deadline and reconnection then you may be able to delay things but be prepared for the property to be pulled if you do decide to brazen it out. Depends how hard nosed the solicitors are, I'm sure the lender would be reasonable as what you are paying is undoubtedly more than they are probably going to get at auction. As I said depends on the solicitors.