FTB Shared Ownership Staircasing, who is right?

5557223

Back in Sep I put an offer for a flat, which was accepted. I later found that the seller only owns 25% and will do a back to back staircasing on the day of exchange/completion so I will own 100% from day one.

While it came as a surprise this was not mentioned during the offer, I was okay with it in principle as long as I ended up having a full share as originally anticipated and the solicitors were set to find out more details.

Since then, searches were done, mortgage offer received etc. There were a couple of docs missing for which we had to wait on the council and that took a long while. To cut the story short, most of the pre requisites are now done except for the fact that the solicitors for the 2 sides cannot agree on how the actual staircasing will function.

Mine are requesting that the sellers solicitors provide a completed AP1 for their transaction and undertaking that they will deal with their costs and their requisitions from the Land Registry. The are saying that they cannot proceed unless the above is dealt with and all the undertakings are provided.

The sellers solicitors, on the other hand, are saying they can't provide such an undertaking as they cannot undertake to do something beyond their control and saying that if the Land Registry raised a requisition that they could not comply with then they could be struck off the SRA for failure to comply, which is a serious regulatory breach.

I have now also received a notice to vacate my current flat. It has been over 4.5 months and coupled with the fact I am a first time buyer, I am getting desperate to find a solution hence turning here and looking for ideas/suggestions for way forward?

Sorry for the long story, please help...

Land_Registry

Reads as if the seller's solicitor may need to give a limited undertaking to cover the issues which may arise over the back to back staircasing as presumably they don't want to undertake to resolve any issues that might arise over your aspects of the purchase?

Normally of course the seller would be buying the final % shares and then registering that change with us. Thereafter they would sell. However they are shortening that process so alternatives could include a limited undertaking (although I would have thought if that was possible then the solicitors would have suggested it) or the seller completes the 100% purchase first and registers it and then sells.

Shenl0101

Seller staircases to 100% in agreement with the Housing Association, simultaneously assigns the 100% share to you along with the completed memorandum (put it in the contract or get confrimation from the Housing Association's solicitor doing the staircasing). The buyers solicitor then submits the 100% staircased memoranudm, TR1 and AP1 etc to the Land Registry to register the memorandum and transfer into your name - make sure your solicitor registers the 100% staircasing memorandum as most don't and this is negligent.