Exchanged but can't complete - serious mess

FTB_Newbie

Our solicitors have said there are no more fees for us to pay, while they sort this out. Very good of them...

pinkshoes

FTB_Newbie wrote: »

Our solicitors have said there are no more fees for us to pay, while they sort this out. Very good of them...

That's a relief, although hopefully not an admission of guilt on their behalf for failing to notice something earlier.

I still don't see why it is YOU that is failing to complete. Surely it is the vendor who has not sorted things out their end, therefore you would/could be suing them??

paddy's_mum

If the property is being purchased by way of a mortgage, doesn't FTB Newbie's solicitor have a professional obligation to the mortgage company to alert them to the problem? Once alerted, would they even allow their money to fund the purchase of a property for which the vendor cannot provide free and clear title, thus forcing Newbie to breach the contract?

G_M

Ulfar wrote: »

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.

The contract says:
"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 the vendor must remove the charge (mortgage), but it is not the charge that is the problem. It is the Notice (the owner's partner's registered interest in the property).

The buyer's solicitor failed to spot the Notice, and the contract says the buyer will be deemed to buy with full knowledge and will raise no objection.

Hence the claim that the vendor is willing and able to sell Under the terms above). However, without the Notice being removed, the buyer could not get the Land Registry to accept the sale and transfer ownership, hence the claim that that the vendor is NOT able to sell.

Ulfar

Think we are getting crossed wires here.

Has the ex done the one of the following two things :

Registered an interest in the property, or

Placed a charging order against the property for 40k

I would have thought that any order placed against the property that requires a sum of money to be paid on sale is financial, therefore is the vendors problem.

If it isn't then it is your solicitors problem and their insurance company is going to be very unhappy.

Edit :

As I understand it placing a notice to register interest prevents a vendor from completing the sale in the same way that an unsatisfied charge would. Either way this is the vendors mess to sort out.

FTB_Newbie

G_M wrote: »

The contract says:
"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 the vendor must remove the charge (mortgage), but it is not the charge that is the problem. It is the Notice (the owner's partner's registered interest in the property).

The buyer's solicitor failed to spot the Notice, and the contract says the buyer will be deemed to buy with full knowledge and will raise no objection.

Hence the claim that the vendor is willing and able to sell Under the terms above). However, without the Notice being removed, the buyer could not get the Land Registry to accept the sale and transfer ownership, hence the claim that that the vendor is NOT able to sell.

This is correct, it's actually an application for a notice. Vendor needs to sort this out with her ex but neither party are budging. Now we are in breach of contract, with 4% interest per day that we don't complete. Which I will push for the solicitor to cover...

No-one can move, broadband being cut off tonight and post redirected now...

G_M

Now we are in breach of contract,

This is legally debatable.

Since presumably the LR will not accept your TR1 to transfer ownership to you while the 'application for a Notice' remains, it is the vendor who is failing to give you Title and who is therefore in breach.

FTB_Newbie

G_M wrote: »

This is legally debatable.

Since presumably the LR will not accept your TR1 to transfer ownership to you while the 'application for a Notice' remains, it is the vendor who is failing to give you Title and who is therefore in breach.

I believe we can buy with the notice but it wouldn't be in our interest, as the ex then can claim when we sell. Also the mortgage company wouldn't agree to it but if we were a cash buyer that we could take the risk!

wuckfit

FTB_Newbie wrote: »

I believe we can buy with the notice but it wouldn't be in our interest, as the ex then can claim when we sell. Also the mortgage company wouldn't agree to it but if we were a cash buyer that we could take the risk!

in which case you cannot complete with the notice in place, I think. I cannot see how you are liable for this mess.

G_M

FTB_Newbie wrote: »

I believe we can buy with the notice but it wouldn't be in our interest, as the ex then can claim when we sell. Also the mortgage company wouldn't agree to it but if we were a cash buyer that we could take the risk!

Unless I've missed it in one of your 3 threads on this problem, you still have not given details of the Notice (or application).

I'm guessing it's an AN1?

Applied for under which eligability (section 9)?

Can you post details of the Notice?