Charging order

Mietold

I am in the process of buying a flat, and our solicitor has discovered there are charging orders against the property.

We are currently awaiting confirmation from the vendor's solicitor that the funds from the sale will cover the debts, but has anyone been through this process, and are there likely to be any delays linked with these charging orders (assuming there are no other delays)? Does the formal process of removing these charges when funds are received delay completion?

Thanks

Bossyboots

The vendors' solicitors will be expected to give undertakings to the chargees' that their orders will be satisfied upon completion. They can only do this once they have confirmation of the amounts due and calculate whether the sale proceeds will cover this. It should not delay completion other than the length of time it takes the owners of the charges to respond. Your solicitor must also get an undertaking from the vendors' solicitors to discharge all the charges upon completion. Without that undertaking, you would be unwise to proceed. A solicitors undertaking is binding so if they undertake to discharge all the charges upon completion and do not so, you have comeback on them for breach of undertaking which is a serious matter.

silvercar

totally agree with Bossyboots. We completed on a house where charging orders had been placed just prior to exchange, they did not cause any delays on completion. It took a day longer to exchange while the seller's solicitor made sure that there was sufficient funds to repay all charges and provide the necessary undertaking.