Estate management share certificate issues

User101

Hello all,

My property is a freehold that was purchased a few years ago. We noticed that we received mails from a Property Management company addressed to the previous owner. So, we contacted the property management company and notified that we are the new owners of the property and that they stop sending these letters. The management company told us that they weren't notified of this property being sold to us and that the previous owner simply stopped their monthly direct debit for service charge and these letters were sent now addressed to them to settle the unpaid amount. They also told us that the seller must have transferred us their share certificate following the sale. When we approached our solicitors, who in turn contacted our seller's solicitors, we were told that the sellers do not have a share certificate and that they were unaware that they had a share in the management company. We are not sure what to do at this point. What are the problems of not owning a shared certificate? If this is mandatory how do we proceed? Is there anyway we can ask this property management company to provide us with a new share certificate and a new account so that we can start paying the service charge?

Please help!

HouseBuyer77

It's not mandatory to own a share of the freehold.

However you may want to, the previous owner owning it instead could cause issues further down the line (if they're not traceable when something occurs that needs agreement amongst share holders or if they feel like being awkward). But it will require the owners signing it over to you (the management company cannot simply transfer it without their permission)

It's odd you were unaware of the service charge and debt. Finding out who the management company is, determining the service charge and if there's any debts on the account is part of the process of buying a leasehold. Go back through the purchase paperwork, there must be something relating to this. If the previous owner claimed there was no service charge you may be able to sue them to repay the service charge debt. Alternatively if your solicitor failed to ascertain if there was a service charge you may be able to sue them.

User101

Thanks for your response.
Our property is a freehold not a lease hold. But it shares a common path (which needs lawn, road and lights maintenance). Our previous owners have accepted to paying the service charge, but however they say that they are unaware of having any share in the company or having a share certificate in relation to estate management. When I contacted the property management company, they informed me that the the seller needs to fill in a declaration of lost certificate for us to obtain a new share certificate. I am not sure to what extent the previous owner would be interested in declaring a lost certificate. Is there any way out of this, if in case the previous owner refuses to fill this or they become unreachable?

Thanks!

Pete9501

You could try asking who the directors of the Management Company are? hopefully some of the residents. Ask them to sort it out with the managing agent.

We lived in a similar scheme, freehold house on private estate with a managing agent to do the day to day tasks. Each owner had one share in the management company. We had to pay a £300 fee to the managing agent on selling to remove ourselves from the company.

It can work well, you have a say in how things are done and an AGM each year to hold the Directors to account.

moneyistooshorttomention

Did the previous owners not tell you that the owner of the house has to pay towards these estate management costs?

If they didn't - then that is misrepresentation and you could bring a claim against them for that. If they didn't mention it and, as far as you were concerned you were buying an ordinary standard house (ie no such charges) - then its up to the last owner to pay those costs and not yourself. You could look to sue them (under "misrepresentation") that the house carries these extra bills they should have mentioned - but didn't. Compensation from them for misleading you like that would at least go some way towards covering those costs.

Add the fact that the house is likely to be that bit more difficult to sell come the time than you had thought and I would be more than a little "annoyed:mad:" with those previous owners.