Can A Solicitor Prevent You Buying A House?

wrkactjob

We are looking to get a New Build in an areas of Littlehampton. Its a 600 house development Barratt/Bellway split.

The mortgage has been approved.

The solicitor states their environmental search shows the land to be former landfill and need to investigate further, this will necessitate us paying another £250+VAT

If they are not satisfied the land is clean they will not proceed with the purchase.

Is this right?...isn't it the mortgage companies responsibility to investigate this?

Surely the developers wouldn't have been allowed to build on contaminated land?

Having said that I found this report on the area from 2 years ago just prior to building starting and the conclusions on page 3 don't sound too good.

http://etsos.co.uk/default/assets/File/SampleProductCards/EstateSolutions_Farm_Sample_Report.pdf

http://maps.environment-agency.gov.uk/wiyby/wiybyController?topic=waste&layerGroups=default&lang=_e&ep=map&scale=1&x=357682.99999999994&y=355133.99999999994

BN17 7PE

Shows two historical landfill sites.

sinizterguy

The solicitors are acting both on your behalf and the mortgage company's behalf.

So, essentially, the mortgage provider is most likely asking for additional investigations and won't release the money without the additional report.

wrkactjob

Where is the line drawn between land that is considered 'clean' or 'dirty'?...the previous landfill sites are some distance from the plots where houses are being built.....

This is just jobs for the boys isn't it?...asking us to pay extra sums for a report to be produced...these investigations must have been made before building even started on this land.

Hedgehog99

It's also protecting you from buying a property that could be dangerous to live in or difficult to re-sell in the future. Yes, contaminated land should be cleaned, but someone needs to check it really was. If you pay the extra and wait for the proper checks, you can quote the findings to any future potential buyer who queries it. It's worth £250 not to get stuck with a lemon.

Diver2

Definately not jobs for the boys...

...I do this for a living! Development companies spend thousands managing contaminated land.

Argyll are an environmental insurer and that report (which is dated 2012 BTW, and thus not really current for the purposes of an on-going development) was probably commissioned for the development funders.

To respond to your specific point though, I would think all that is needed is for your solictor to get a written response from the council that any ground contamination conditions associated with the planning permission have been suitably discharged and that the site is not (or no longer) considered a concern under Part IIA of the Contaminated Land Act. Equally, you could go along and actually speak to the Counci Contaminated Land Officer/EHO and found this out for yourself. You might save some money this way.

wrkactjob

Fair enough, I will pay up.

wrkactjob

http://www.cml.org.uk/cml/handbook/englandandwales/question-list/209

Question: 5.4.4. Does the lender want to receive environmental or contaminated land reports?


Skipton: No, except where matters requiring further investigation are indicated in which case please send the Consultants Certificate only.


Spoke to Skipton, the mortgage offer is not subject to any enviromental report.

Is this solicitor having a laugh?

G_M

wrkactjob wrote: »

The mortgage has been approved.

The solicitor states their environmental search shows the land to be former landfill and need to investigate further, this will necessitate us paying another £250+VAT

If they are not satisfied the land is clean they will not proceed with the purchase.

Is this right?....

Your solicitor cannot prevent you buying a house.

But your mortgage lender's solicitor (usually the same person) can prevent you buying by advising the lender not to lend against the house.

Of course, there is nothing to stop you proceeding with the purchase and risk your own money (ie pay cash instead of getting a mortgage).

You can then instruct your solicior to proceed (even aganst his advice), or indeed, you could do your own conveyancing.

wrkactjob

G_M wrote: »

Your solicitor cannot prevent you buying a house.

But your mortgage lender's solicitor (usually the same person) can prevent you buying by advising the lender not to lend against the house.

Of course, there is nothing to stop you proceeding with the purchase and risk your own money (ie pay cash instead of getting a mortgage).

You can then instruct your solicior to proceed (even aganst his advice), or indeed, you could do your own conveyancing.

The solicitor is not acting in my interest, my solicitor who I am paying is acting against me, to my disadvantage.

The mortgage lender has carried out a survey/valuation report by one of their own who has viewed the land. No condition has been placed on the mortgage, it is unconditional, the lender does not want to see any contamination report.

And my solicitor is threatening to wreck my prospect of owning a home?

It must be time to cut my losses with them and use another solicitor....I really can't believe it!

ossie

I think the professionals are acting responsibly! There was a program this week where landfill gases had made properties worthless. I think they ARE acting in your best interests! I understand you want to get on housing ladder but buying a property that was a landfill will come back to haunt you!

G_M

wrkactjob wrote: »

The solicitor is not acting in my interest, my solicitor who I am paying is acting against me, to my disadvantage.

The mortgage lender has carried out a survey/valuation report by one of their own who has viewed the land. No condition has been placed on the mortgage, it is unconditional, the lender does not want to see any contamination report.

And my solicitor is threatening to wreck my prospect of owning a home?

It must be time to cut my losses with them and use another solicitor....I really can't believe it!

You misunderstand.

It is not your solicitor who is doing this. It is your mortgage lender's solicitor.

As it happens (I asume, since this is normal) the same solicitor is acting for both of you. As the lender's solicitor, he has a professional obligation to act in their best interests. This may conflict with your best interests, but he cannot hide the information from his client.