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Section 38 Agreement - new build query
abbieno7_2
Posts: 108 Forumite
Hello
We have this week signed the contract/transfer deeds for a new build property. The solicitor has informed us that the last phase of the development (where our house is) hasnt yet got a section 38 agreement in place so is suggesting telling the builders solicitors that to safeguard us she is going to keep £500 back just in case the builders ever go into liquidation prior to the road becoming adopted. I'm not sure that the builders will want to agree to this and we are also anxious that the lender (Halifax) may have concerns about a section 38 not being in place. Does anyone know anything about this please as we are FTB's and haven't a clue!!
Thanks a lot
We have this week signed the contract/transfer deeds for a new build property. The solicitor has informed us that the last phase of the development (where our house is) hasnt yet got a section 38 agreement in place so is suggesting telling the builders solicitors that to safeguard us she is going to keep £500 back just in case the builders ever go into liquidation prior to the road becoming adopted. I'm not sure that the builders will want to agree to this and we are also anxious that the lender (Halifax) may have concerns about a section 38 not being in place. Does anyone know anything about this please as we are FTB's and haven't a clue!!
Thanks a lot
0
Comments
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I think this is something you should be guided by your solictor, this may be something that can be dealt with by an indemnity policy arranged by the solictor, which may be how Halifax would want to deal with it.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Thank you for your response - we have been told today that exchange has had to be put back until mid to end of next week whilst the bank are checking things over ....beginning to worry now!0
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