Selling house / divorce / Tomlin Order

Gasman2000

Hi

A friend of mine (yes, really!) is getting divorced & is selling their house

She knew her husband had debts (unpaid tax circa £38K) but found out recently that there is a voluntary charge against the property

I would assume the husband forged her signature on the Land Registry documents!

Question is... What will the selling prices be with regards to contract and money exchange. If the buyers money comes in to their solicitor can the buyer then move in or will there be a delay whilst the Tomlin Order (HMRC debt) / Land Registry paperwork are sorted out

Thanks

clutton_2

The order is named after the High Court judge Mr Justice Tomlin (as he then was), from his ruling in Dashwood v Dashwood ([1927] WN 276, 64 LJNC 431, 71 Sol Jo 911) delivered on 1 November 1927, that such an order kept the proceedings alive only to the extent necessary to enable a party to enforce the terms of the settlement. In that case, Tomlin J held that a provision in the order which required one party to refrain from running a business in competition with the other party could not be enforced unless and until the court made an order for specific performance or for an injunction. Thus, any provisions in a Tomlin order which require action by the court, such as releasing funds held in court, or an order for costs, must be included in the body of the order, not the schedule. Until a second order has been sought, it is not possible to apply to commit the party in breach for contempt of court.

dont know if that helps or not.....

Gasman2000

Thanks but still not clear :-)

There is a document filed with the Land Registry that implies to them that if they sell the house then the £38K must be cleared in full. I will see if I can find out any further info

clutton_2

i think the lender gets the first tranche of sale funds; then the tax man then the mortgagees.... so it all depends on how much equity there is in the property as to whether he or she or they get any money at all back.....