Transfer of Equity - please help

tommyfoster2012

Hi,

I am hoping someone can help me out. Me and my partner split up last year and we did a transfer of equity in to my name. I thought everything was completed but I received an email from the solicitors this morning with the following :

I write further in relation to your matter and am currently dealing with a restriction at the Land Registry which needs a compliance certificate from the management company to satisfy the same.

I have been in contact with the Management Company and they have advised that to issue the compliance certificate they require:-

1. A signed Deed of Covenant together with a fee of £160 plus VAT (£192)

2. A administration fee for the compliance certificate of £100 plus VAT (£120)

3. A completed application form for membership

4. All arrears to be cleared and as at February there is an outstanding a balance of £317.56

I attach the application form and Deed of Covenant for your completion.

On the Deed of Covenant please sign next to “signed as a deed by...” and then have an independent adult witness your signature and they should then complete their name, sign and write their address where stated just below where you have signed.

If you would prefer me to send to you the documents in the post if you have any trouble with printing the same please e-mail me and I shall arrange this.

Please return the document marked for my attention at your earliest convenience via the post as I do require the original.

When returning the documents please enclose a cheque in the sum of £629.56 in payment of all the amounts as set out above which are required.

As far I was concerned this was sorted last year so I'm very shocked and surprised to learn I have to pay a further £629 for this compliance certificate, I queried it with the solicitor and they replied with the following : -

The matter has completed, what we are dealing with is post completion matters so you can be registered at the Land Registry as the sole owner of the property. The £700 you refer to is not our fees and relates to the following:-

1. £317.56 is service charges which should have been paid by either yourself or Miss ..... You would have been aware of this and would have received demands for payment

2. Mainstay Group Limited who act as Company Secretarial for the Management Company for your property charge £160 plus VAT (£192) for processing the Deed of Covenant and £100 plus VAT (£120) to issue the compliance certificate. This is their fees to change the property in their records into your sole name. You would have also paid these charges when you purchased the property.

We would not have known of these charges when we issued you with the quote for our fees and unfortunately is something we have no control over.

What I am angry about is the service charge, we've never received any bill fom the management company 'demanding payment' nor were we made aware of this and we've been residents for over 2 years - I'm guessing this for the maintenance of the area as we live on an estate? Where do I stand on this, will I have to pay the full bill?

Thanks.

TBagpuss

Yes.

The management charges are something which you presumably should have been paying all along. The management company will probably not issue their certifivcate unless their terms including clearing arrears are complied with.

If you had been buying the house then the solicitors would have checked this out before you bought, and would normally have got appropriate undertakings from the seller to clear the arrears. As it was a transfer of equity they presumably didn't on the basis that you were already an owner and should have known.

The fact that the company requires a fee to issue the certificate is fairly standard.

You can ask your ex to continue - technically, the deed of covenant to be signed will (almost certainly) be you agreeing to be responsible for the management charges etc in the future so arguably it is in her interest that this is done and that she is released from all liability, however, in practice it is unlikely to make much difference to her, as given that you are in the house, you are much easier for them to find and bill.

The solicitors should have been aware when they saw the Office Copy Entriees that a deed of covenant might be required and that there might be charges to pay for the management company to deal with it, so you may have grounds for a complaint if they did not raise this with you sooner - that would depend on the instructions you gave them, and what they told you at the outset.

The service charge issue is one which is nothing to do with the solicitor. It is between you (and your ex) and the management company. You may be able to raise a complaint with them about whether they previously billed you, but you may find that there is something in the small print which states you are liable whether billed or not.

If you don't get the certificate then you are likely to find it more complicated when you come to sell the house.