Checking for debt on house purchase.

C.C.L.

MrNervous wrote: »

Thank you all for the comments.
We have now found out the vendor has not kept up with an order under the proceeds of crime act,maybe he was selling this property to satisfy that order.
Our conveyancer has been of little help and recommended a solicitor to check out the vendor,so we have done this and so far we have learned the vendor owes money to the inland revenue (vat),the court system and several more companies he has also applied bankruptcy.
So 2 hours of asking a solicitor for help we have found out the life story of the vendor,not very good reading unless your into white collar crime.
So it looks like we will withdraw from the purchase and not exchange contracts tomorrow.

Thanks.

But that's on the person, not the house. It's bricks & mortar you're buying and they haven't done anything wrong. It shouldn't affect the house at all, so why pull out? It doesn't make sense to me, unless you were already having doubts or were not fully commited to buying in the first place.

G_M

I'm not sure why what you've found out has led you to withdraw, unless it is to spite the seller.

Your transaction with him is a property purchase. You agreed a price so presumably believe the property is worth that price.

Provided he transfers ownership of the property to you at Completion, why does it matter to you what he plans t do with the money you pay? He may pay off those debts, or abscond to South America, but either way you will own the property you wanted.

The important bit is to ensure that the property is transferred to you without any Charges on the Title. This is just standard conveyancing (most properties have a mortgage Charge on them which must be removed).

moneyistooshorttomention

MrNervous wrote: »

Thank you all for the comments.
We have now found out the vendor has not kept up with an order under the proceeds of crime act,maybe he was selling this property to satisfy that order.
Our conveyancer has been of little help and recommended a solicitor to check out the vendor,so we have done this and so far we have learned the vendor owes money to the inland revenue (vat),the court system and several more companies he has also applied bankruptcy.
So 2 hours of asking a solicitor for help we have found out the life story of the vendor,not very good reading unless your into white collar crime.
So it looks like we will withdraw from the purchase and not exchange contracts tomorrow.

Thanks.

Put like that.

You're probably just as well to withdraw from the sale. Dealing with firms that are owed money is one thing. Dealing with HMRC :eek: and the fact he's in debt enough he's basically bankrupt and that whilst you've got a conveyancer (instead of a solicitor) is quite another.

But then - I'm more cautious than G_M and wince at the thought of what the two vendors I've had were like and wish I hadnt had to deal with people like it - so someone like that = personally I would feel a bit *** about having to do so.

I don't know just how much their house would be involved in their dealings - as I've never known/wouldnt ever know a bankrupt personally.

rosyw

I really can't see what the vendor being in debt has to do with your house purchase. When I bought my place I knew the vendor was heavily in debt, we had to delay completion for a few days as he wouldn't have been able to pay the early redemption fees on his mortgage, but HIS debts haven't caused ME any problems! The only slight nuisance was the amount of post from his creditors, which I initially RTS and later simply binned.

If you really want to pull out due to the vendors debts it's your loss.

eddddy

MrNervous wrote: »

Our conveyancer has been of little help and recommended a solicitor to check out the vendor,so we have done this and so far we have learned the vendor owes money to the inland revenue (vat),the court system and several more companies he has also applied bankruptcy.

As others have said, you don't have to worry about what the vendor owes to HMRC and/or other companies.


BUT... if there is a pending bankruptcy petition against the seller, that could be an issue. The transaction could be voided.

So if your solicitor is advising you not to proceed, it's probably because of a bankruptcy petition.

See: https://www.wrighthassall.co.uk/knowledge/legal-articles/2015/08/20/be-aware-void-property-transactions-if-seller-inso/

MrNervous

Thanks for the comments,just pulled out of the purchase.

Reasons include he used this property as a business address and according to their neighbour has regular visits from bailiffs,police and people demanding money at all hours of the day/night.
The newly built 2016 annex (his office) ,he has not paid the builder for its construction although he has all the council and buildings regs done correctly.
So for our families peace of mind we have pulled out, off to find another property now,

Thanks again.

moneyistooshorttomention

Sounds like the correct decision to make to me.

I really wouldnt want to be trying to persuade all those people (particularly the builder) that I was nothing to do with the crook.

Shame he's gone and wasted your time and money - but will keep fingers crossed you find a better house than this.

Guest101

I'd off cut 10% off my offer and proceeded. The guys clearly needed to liquidate assets before they were seized

marksoton

MrNervous wrote: »

Thanks for the comments,just pulled out of the purchase.

Reasons include he used this property as a business address and according to their neighbour has regular visits from bailiffs,police and people demanding money at all hours of the day/night.
The newly built 2016 annex (his office) ,he has not paid the builder for its construction although he has all the council and buildings regs done correctly.
So for our families peace of mind we have pulled out, off to find another property now,

Thanks again.

That's your prerogative.

But blimey i wouldn't want to be selling to you. You might find out about the parking ticket my mum got 10 years ago...

fairy_lights

Guest101 wrote: »

I'd off cut 10% off my offer and proceeded. The guys clearly needed to liquidate assets before they were seized

On the other hand, he might not want to sell to the OP once he realises that they've been investigating him to that extent.