Are charges on a property part of standard searches?

evoke

Imagine this scenario. You buy a house and current vendors have a debt collection agency on their backs. You only find this out some time after completion. The house sale goes through fine and then the debt collection agency starts knocking on your door trying to contact the previous owners.

The previous owners have effectively done a runner. What would happen to you and your new home in this scenario?

Could it be possible that the debt collection agency is pursuing monies that were lent to the previous owners against a charge on the property? Or would charges against a property for debts show up as part of the standard conveyancing process?

Secondly, assuming that the previous onwers' debts were not secured against the property itself, could a debt collection agency then take stuff out of your new home or ask you for the money that was owed by the previous owners?

silvercar

Been there.

The answer is that financial records are not linked by address, so previous owners black marks don't become yours.

All charges on a property are cleared at the point of sale. Your solicitor ensures you have clear title to the property.

Debt collectors can only take property of the debtors.

The worst that should happen is post and knocks on the door from debt collectors. Once you show them some proof that you are not the debtor they seek, they should (and do, from my experience) politely take their leave.

evoke

That's a relief. The seller did phone me a few days ago saying that I might get letters from debt collection agencies addressed to her maiden name and for me to just forward them on to her. I got a bit worried thinking my new home might be at risk!

I'm inclined to just return them to the sender marked as 'Not known at this address', if I do get any of the letters.

madmish00

I wouldn't return them 'Not Known' I would send them back 'No longer at this address' which is more factually correct.

In any event if the seller is asking for them to be sent on then I assume you have a forwarding address that can be passed on? Unlike our situation where we had no forwarding address and were getting letters on a daily basis from a variety of debt collectors.

evoke

No, I don't have a forwarding address. Her parents live locally so she said they can collect any letters for her.

Interestingly, she has only set up Royal Mail redirection for one month. I'll do as you suggest: return to sender marked as 'no longer at this address'.

80schild

I think charges secured on a house appear on the deeds. I have had a few 'final demands' from debt collection agencies for the previous owner of my house but just phoned the company and told them they no longer lived here and they were fine with this!