Cannot register my property as charge put on after completion

Robina_2

Hi everyone,

Please can you help me. I found out from my solicitors after I completed on my property on 10th May 06 that my new property cannot be registered in my name as there is a charge on it. After some good advice on this forum I was told to get a written explanation from my solicitor to explain why this was missed on completion of my property.

I have now had a letter from my solicitor saying 'It appears that the interim charging order was actually registered on 31st May 06, shortly after completion.' I do not understand how the seller can get a charge on the property when they do not own it anymore. Also if they have managed to get some finance using the property as colateral just before they sell it then that must be something that a good solicitor could check out before completion takes place.

Any advice would be greatly appreciated as we are really worried about this matter because as things stand the property is not registered in our name.

Many thanks

Robina

Raggie

I think you may need serious legal advice, much more than can be given on an open forum.

I would say start with the Law Society find a solicitor in your area who specializes in property and seek a second opinion.

And take it from there..

and good luck

lostfarmer

Hi, no good advice for you- sounds like a nightmare, especially after you've negotiated the moving minefield.

I thought solicitors were supposed to carry out a search between exchange and completion to stop this happening? Then again if the charge was put on after you completed??!

Would echo what the above poster says, get legal advice. Do you know who has put on the charge?

Good luck anyway, feel for you

MegS

What has your solicitor suggested as the next course of action? Your lender will also be concerned about this (if you have one). Surely if it was registered after you completed the seller will be chased for fraud?

tifnstav

Your solicitor should have done an OS1 search before they exchanged contracts to make sure that no-one could register a charge on the property apart from your mortgage lender (or you yourself if you haven't got a mortgage).
it sounds as if they haven't done the OS1 search to protect your interest and that of the lender.
ask your sol to confirm the date the OS1 search was done (OS2 if the property is currently unregistered) and also ask them to confirm when the priority period ended.
the priority period is the length of time you rsol has to register the property in your name and register your mortgage lenders charge.
pm me if you need to.
good luck.

clutton_2

i have heard about this happening to two other folks in the last 3 months - this is very worrying. One case - the solicitor screwed up on searches; two cases, coincidence - three cases (just to my individual knowledge) - what IS the problem with the Land Registry ?

Your solicitor has a legal duty to stop this happening to you. if he does not give you a satisfactory explanation - ask for an interview with the Senior Partner who handles complaints = each firm has to have one, under Law Society rules.

goood luck

withabix

I've heard of a few of these recently too. It seems to be a new scam by people with debts.

Still, if you Solicitor has screwed up, they are probably liable for the cost of sorting it out and/or for the charge.

clutton_2

This scam then leaves a debt which someone else has incurred on the property of an innocent purchaser, and, apparently, legally s/he is responsible for it when the property is sold.

Robert_Sterling

Do conveyancers who are not solicitors have a better or worse record than solicitors in regard to this problem?

silvercar

clutton wrote:

This scam then leaves a debt which someone else has incurred on the property of an innocent purchaser, and, apparently, legally s/he is responsible for it when the property is sold.

Though I would have thought that any solicitor who has allowed this to happen would be liable for the costs of putting it right, rather than the purchaser.

IanJames

This situation in reality should never occur, if the solicitor does his job correctly. As one of the previous members explained the solicitor should have done a search with priority this is a priority period in which no one can put a charge on the property between the period you have completed and registered your title. If your solicitor has failed to carry out this search than he is in the wrong. I'm sure his legal indemnity will cover his liability based on the information you have provided, their is no other explanation. You do need to speak to the senior partner and ask for the situation to be resolved failing which you need to seek alternative legal representation and contact the Law Society.