Buying a repossession - weird clause in contract

chopperharris

the only reason why i could see such a clause is leasehold or part owned?

Perhaps its to do with the build garnuntee if its a new build and the warranty?

davethetaller

If it was me, I would knock on the neighbours doors, and say that I was

interested in buying the house next door, and if there was anything untoward

about the property, you would be ever so grateful to hear of it, and by the

way, (whilst you are drinking a cup of tea in their kitchen, after they have

invited you in)!,can they remember if there are any strange clauses in the

deeds (of the neighbour that you are speaking to).


People are just nosy,and just love to tell you what they know.

Ilian2008

Hi people. Just to let you know, i have seen these clauses before and usually with Northern Rock repossessions and halifax but especially with sub prime lenders like Southern pacific. The reason behind it (and your solicitor would have found this out if he aked the lenders solicitors the question) is that sometimes the person that has been repossessed complains that the lender has sold the house too cheaply or if that person has gone bankrupt, the trustee in bankruptcy may want to complain and the lender will arrange an inspection/valuation again to prove it sold it for the best it could get. Its rare to be enforced and 2 years is a very long time especially as people renovate etc. Its usually around 3 months.

jswaminathanuk

hellol,
I just bought a repossessed property and I can try to answer ur ques.
Yes you are the owner. however this is a disputed property (repossessed).
the mortgage company would not have hip or anything. they will not any money on this.
The only reason they need access to your property is to prepare to do searches etc so they can prepare legal work.
I don't think you should worry too much.
I am sure they have to give you notice before they need access to your premises.

puddy

well every property has to have a hip instructed in order for it be on sale so the lenders have no choice about this,

with regards to searches and other things like that, i would want to know the outcome of those before i exchanged as then you are committed to buy it and if you dont like the outcome of the searches, its too late if you have already exchanged

jswaminathanuk

I was told by my estate agent that my property is in the market for over 2 years so they don't need HIP.
Repossessed properties are like auction property. you have little room for negotiation (unless it is in your original offer) but again I am no expert.

LisaLou1982

Hiya

This is a standard clause in the contract of all repos. They are part of a legal requirement that the client has to the previous owner.

If you're not happy then dont exchange but ive never known it to be a problem in my experience.

Catti

Out of curiosity, are you able to quote the exact clause about reinspecting? I have never seen such a clause but would be interested to look at it!

Catti

Ilian2008 wrote: »

Hi people. Just to let you know, i have seen these clauses before and usually with Northern Rock repossessions and halifax but especially with sub prime lenders like Southern pacific. The reason behind it (and your solicitor would have found this out if he aked the lenders solicitors the question) is that sometimes the person that has been repossessed complains that the lender has sold the house too cheaply or if that person has gone bankrupt, the trustee in bankruptcy may want to complain and the lender will arrange an inspection/valuation again to prove it sold it for the best it could get. Its rare to be enforced and 2 years is a very long time especially as people renovate etc. Its usually around 3 months.

Ah - that makes more sense - thank you!

Rebchappers

LisaLou1982 wrote: »

Hiya

This is a standard clause in the contract of all repos. They are part of a legal requirement that the client has to the previous owner.

If you're not happy then dont exchange but ive never known it to be a problem in my experience.

I dont agree with this... we have been to purchase two repossessions now and this clause was not in either of the contracts