Conveyancing help please!

JingleJangle

Of course he has a duty to the lender.

KateLiana27

devotee wrote: »

Nothing came up on survey regarding the knotweed! As far as the survey is concerned there is no knotweed. I think the vendor's gardeners have discovered it and informed the vendors and thence us.

In that case, I think the solicitor is on dodgy ground. It's basically hearsay. What is he proposing to put in the letter - "the vendor's gardener, Old Jim, thinks there is something that looks a bit like knotweed in the garden, just so's you know". It would be different if he had seen it in writing in a surveyor's report.

Yorkie1

devotee wrote: »

No I don't get that! We instructed him, he got sent the mortgage offer so he represents the lender now? So why are we paying him???

When there is a mortgage involved in a property purchase, the lender instructs a solicitor to act on their behalf and represent their interests. The lender will have a panel of acceptable solicitors and if your solicitor is on that panel, then your solicitor will also act for the lender. This is standard practice.

When you got your quote from your solicitor, there will have been somewhere in it something relating to the solicitor also acting for the lender.

G_M

The solicitor has two sets of instructions.

One from you, the buyer, to act on your behalf in transferring the Title of the property to you.

One from the mortgage lender, to register their interest in the property on the Title's Charges Register.

He therefore has obligations to you, to advise you of any issues relating to the title (ie if there is a Right of Way across the garden mentioned in the deeds which you might not know of etc.).

He also has obligations to the mortgage lender on matters affecting the Charge (ie knotweed which could make their loan a risky financial venture).

In some cases, different solicitors undertake these two roles - you appoint one, and the Lender appoints one.

However it is easier, and cheaper (ultimately you pay for the Lender's solicitor anyway) for the same solicitor to do both jobs, so this is what usually happens.

The_Palmist

I will give you an example of my solicitor. She found something about a historic mining shaft near the property I am buying. It hasn't been used in 100 years and this was confirmed by coal mining authority. She did informed the lender even though bank had done their survey. She then waited till bank confirmed they were ok with this.

devotee

Thanks for clarifying that for me!

Ok so what am I to do in this situation?
Keep the same solicitor even though that might affect our mortgage or appoint someone else who is not on the bank's panel and won't tell them?
Yes I remember something on his instruction saying he acts for banks too, didn't have a clue what that meant!
I think he wants the vendor to write a letter saying they will fix the knotweed and he "thinks" it will be fine with the bank. Or get a new guy who is not obliged to tell the bank? Advice?

devotee

Bump ^^^^^^^

Richard_Webster

A solicitor's duty in this sort of case is to tell lay client that he has a potential conflict of interest and that it can be dealt with by informing the lender of whatever the issue is.

In this case I would make it clear that the knotweed was understood to be about 60m away and was not noticed by the lender's surveyor and suggest that because of that they might not think it much of a concern.

If client does not give consent then solicitor has to withdraw from acting for both lay and lender clients.

You then go to another solicitor and ask him to take on case and he asks why that is and you explain and he probably says he'd have to do the same....

Solicitor doesn't have to tell lender why he has withdrawn but they must suspect that something has happened and will be much more suspicious and cautious.

devotee

Thanks Richard,
Spoke to the EA who will advise the freeholder to set up a separate account for the knotweed and to issue letters that they will solely be responsible for its removal. And yes the gardeners noticed it, not a single surveyor has - 6 flats were being sold at the same time - we are one of the last two to complete.