House Buying Questions

neneromanova

Right, OH is buying the property (Mortgage in just his name) and I have been told:

"She will therefore be required to sign an Occupiers Consent form upon which she is required to take Independant advice."

He goes on to say he can't give me the advice so will need to arrange to see a separate solicitor for this purpose.

Do I REALLY need to do this? Surely this is just extra costs? I understand that I need to do this so that the mortgage company can evict me if OH defaults on the mortgage and gets chucked out himself.

He said he wants 10% deposit for the exchange date...when does the other 5% get passed to him?

Also this has flashed up and I'm confused by it...

"The sellers say that they have not received notice of any breach of covenant but there is in fact a breach of covenant 2(i)"

Upon reading 2(i) it states : "Not to make any addition or alteration to any building withoutfirst having obtained the prior written consent of the vendor and upon any application for such consent to supply to the Vendor plans elevations and specifications together with copies for retention and to pay a reasonable fee to the vendor for the approval of such plans elevations and specifications."

HUH?!?! Can anyone put that in plain english for me please?

There was an extension built in 05 out the back. Apparently "A Defective Title Indemnity Policy will therefore be required but the sellers are not prepared to pay for this." (Suprise Suprise) So we need to pay £160 for this policy to be set up. Has anyone heard of this? And is it standard?

Please help. I never had any of this on my first property that I bought.

Richard_Webster

Little sad OH's solicitor didn't explain things well enough and you had to come ion this forum wit he question.

See comments below:

Right, OH is buying the property (Mortgage in just his name) and I have been told:

"She will therefore be required to sign an Occupiers Consent form upon which she is required to take Independant advice."

He goes on to say he can't give me the advice so will need to arrange to see a separate solicitor for this purpose.

Do I REALLY need to do this? Surely this is just extra costs? I understand that I need to do this so that the mortgage company can evict me if OH defaults on the mortgage and gets chucked out himself.

The lender does not want you saying you put money into the property and you didn't know about the mortgage and trying to stay there if they seek to repossess because OH doesn't keep the payments up. They want to make sure you can't say later you didn't understand what you were signing - so sorry you will need to get that independent advice.

He said he wants 10% deposit for the exchange date...when does the other 5% get passed to him?

Solicitor will want rest of the money together with any costs and disbursements such as Land Registry Fees and SDLT (if applicable) so he has cleared funds a day or two before completion.

Also this has flashed up and I'm confused by it...

"The sellers say that they have not received notice of any breach of covenant but there is in fact a breach of covenant 2(i)"

Upon reading 2(i) it states : "Not to make any addition or alteration to any building withoutfirst having obtained the prior written consent of the vendor and upon any application for such consent to supply to the Vendor plans elevations and specifications together with copies for retention and to pay a reasonable fee to the vendor for the approval of such plans elevations and specifications."

HUH?!?! Can anyone put that in plain english for me please?

There was an extension built in 05 out the back. Apparently "A Defective Title Indemnity Policy will therefore be required but the sellers are not prepared to pay for this." (Suprise Suprise) So we need to pay £160 for this policy to be set up. Has anyone heard of this? And is it standard?

The person who has the benefit of the covenant could come along and ask OH to demolish it or more likely pay a large sum for a retrospective consent for it. Unless the solicitors think they can easily and cheaply get a retrospective consent an indemnity policy will be needed to protect OH and his mortgage lenders in case the covenant holder ever shows up and makes a fuss.

Even if OH is prepared to take the risk the lender won't so there must be a policy in place. Question is who should pay - in my book it is clearly down to seller - he built the extension without consent - unless of course OH is buying a repo and then the selling mortgage lender's attitude is "You are getting it cheap so you take it warts and all.

So unless it is a repo, OH should make a huge fuss with the estate agents and say he doesn't see why he should pay for a policy caused by the seller's mistake. Also OH's solicitor should have argued the point with the seller's solicitor.

Please help. I never had any of this on my first property that I bought.

Does that help?

neneromanova

Thanks, that really helps. About the "Conveyancing Vendor", they ceased to exsist in 2008...so what would happen in this instance?

Richard_Webster

Thanks, that really helps. About the "Conveyancing Vendor", they ceased to exsist in 2008...so what would happen in this instance?

By "Conveyancing Vendor" do you mean the company that built the houses and imposed the covenant in the first place? If it ceased to exist in 2008 then its consent can no longer be obtained so the covenant is unenforceable. Therefore you wouldn't need a policy, in which case the seller's solicitor is rightly refusing to pay for one, and your solicitor is being silly insisting on one.