Section 38 Agreement

Southsaver_2

The property I am purchasing is one of many new builds, and because of this new roads had to be made. I've been told today that my Solicitor has been told that there is no Section 38 Agreement yet which is annoying as my Solicitor asked on the 20th April.

Do you think Nationwide will be okay that the road may or may not be handed over to the council?

I don't even know how far long it's been in the 12 month period of which the council has to accept the agreement.

My Solicitor said there shouldn't be a problem but my lender might ask to retain a sum of money from my Seller's Solicitors, until there is confirmation of the agreement.

I am feeling pressured into purchasing this property quickly, but it seems the Sellers Solicitors are the one's delaying everything.

opinions4u

The usual sort of outcomes for this are:

1) A retention imposed by the lender or
2) A letter of undertaking from the LA that they will eventually adopt and committing to repairs/maintenance up to a certain amount or
3) A letter of guarantee from the builder that necessary roads/repairs/maintenance will be in place.

Ultimately, it's up to the lender to say what they will or won't accept.

Southsaver_2

Thanks for the reply, opinions4u.