Exchanged but can't complete - serious mess

caeler

Its the same. Why would you start a new thread on an existing issue.

Richard_Webster

You need to look at the contract.

First: When was the notice registered?

If after the date of the contract then it is definitely a matter for the seller - he is breach and you don't have to complete and can ask for your deposit back.

If before the date of the contract then it depends on the terms of the contract.

Vacant possession isn't really the issue here as presumably vacant possession could be given it is just that you wouldn't get a clear title.

The issue will turn on what the property is sold subject to. This will often be something like: "the entries on the registers of the title referred to above except financial charges". The last point is so the seller is obliged to pay off his mortgage and probably doesn't apply to a matrimonial type notice.

If the wording is like the above the seller can argue that the buyer takes subject to any entries that exist at the date of the contract and OP might be stuck because his solicitor should not have accepted that wording.

I routinely amend such clauses so they read "entries on the registers of the title as shown in official copies dated [insert date] at [insert time]" and you insert the date and time of the official copies supplied by the seller's solicitors or in the HIP if there aren't any others. If the notice did not appear in that set of official copies then you do not have to complete because a new incumbrance has been introduced that was not shown.

OP needs to check with his solicitors the precise wording. There could be other wording in the contract which shifts the onus back to the seller not to have anything nasty.

RabbitMad

bluefuzzybug wrote: »

Its the same. Why would you start a new thread on an existing issue.

and this thread too http://forums.moneysavingexpert.com/showthread.html?t=2235569

RabbitMad

FTB_Newbie wrote: »

The VENDOR'S solicitors are advising the VENDOR that if we don't complete they are entitled to the deposit and 10% of the purchase price. Surely they knew we would be unable to complete on a property that had a notice.

The seller's ex has advised in the eleventh hour that he won't remove the notice.

I'm not going to sleep much tonight.

I was very confused until I re-read both threads and fixed the problem above.

Its lucky that you are in rented as if you were in a chain you'd have to move out otherwise you could end up getting shafted from both ends.

FTB_Newbie

Its still not resolved, less than half and hour before completion, solicitors are trying to reach an agreement. They want our vendors solicitors to hold some of the proceeds of the house sale and this can be contested by her ex. She has a child with her ex but they were not married, or joint owners so its complicated.

Meanwhile we have signed a contract saying

The property is sold subject to all covenants and other matters disclosed by the title to the Property except for financial charges and the Buyer or his Solicitor having been supplied with offical copies dated xxx 2009 of the same shall be deemed to buy with full knowledge fo the same and shall raise no objection or requistion on the same.

So our vendor can sue for breach of contract after 3pm, if they cannot resolve and our solicitors would need to counter sue.

Our vendor didn't declare any interest in the property, this box was neither checked nor unchecked on the Land Registry Act before exchange, so there is misrepresentation.

Unless our vendor reaches a financial settlement with her ex, there is nothing we can do.

pimento

What does your solicitor say? He should have picked this up before exchange. That's what you pay him for.

FTB_Newbie

They are trying to resolve it between them, its in everyones best interests. Her solicitors and the vendor withheld information (mis-representation) and ours were negligent.

Becareful when buying property with a matrimonal dispute, we only found out after exchange but did raise flags with our solicitors.

I can't believe its happening...

chappers

Don't get panicing just yet let the solicitors do their thing, your vendor will first have to serve you with anotice to complete this will give you 10 days further breathing space before they can rescind the contract and keep your deposit.

Ulfar

Sorry I still don't see how you are in breach when they cannot complete the sale.

From what you have put the financial charges on the property are the sellers responsibility. As an aside if they concealed a charge that is their problem.

If it has left you responsible for the charge then your solicitor will have to stump up the cash as they have been negligent, you paid them to arrange the purchase of a property which they have royally screwed up.

Why haven't your solicitor laid your mind at rest that you are not in anyway going to be footing the bill.

mrgstar

I have heard of very similar things to this!

It is very easy to put a charge on a property and I gather anyone can do it. It cost £30 i think. The only way to get it off is going to court (if you cant come to agreement beforehand). I would not get to worried as in my opinion, your agents have been neglectful and I should imagine will be held liable for any losses you could make. The agents should be checking for any changes to titles, deeds, charges etc etc from exchange to completion. Obviously yours has not, or has and has not told you! It sounds like a scam between the sellers!

Personally, i would get some legal aid, take the seller and his ex to court, the court will lift the charge and then i would sue the solicitors for neglect..

Good luck - and dont listen to me too much as I am no expert!