Exchange of contracts documents

richy4

Before Christmas I received through the post my contracts for a new build leasehold flat due for exchange at the end of January, and then completion in November.

There are a number of errors in the contract and some weird things which I think have worryingly been included for a different property! For example, property will be in Sussex however there is a clause about residents parking permits for the London Borough of Croydon?!

As a result, I've asked the solicitor to re-send the contracts in there entirety before I consider them again.

2 areas I particularly wanted to get advice on and I have questioned with my solicitor are:

1. The leasehold 'requires' me to become a member of and also a Director of the management company being set up. This sounds like a step too far, I do not want to become a Director of any management company as this involves far more responsibilities than I am comfortable with, namely being listed at Companies House and being liable financially and legally for all the Management companies dealings. Is this common? I am outrightly refusing to do this currently, however solicitors have been away for last 2 weeks over Christmas so yet to hear reply.

2. The 'legal pack' from the seller has been sent to me as an online PDF portal of over 20 documents. I am not happy to just go and view the documents online. Especially as a FTB. Is it common for sellers to simply say yeah all the documents are online, you go and look at them and print them at your own expense?! I've asked my solicitor to print them all off for me and send me all of them, after all, they're being paid a bomb so printing 20 documents will start to get me a bit of extra value for money maybe :cool:

Are both of the above common? I'm particularly not happy about being a Director of the management company and want to find ways to avoid this if possible.

davidmcn

richy4 wrote: »

1. The leasehold 'requires' me to become a member of and also a Director of the management company being set up. This sounds like a step too far, I do not want to become a Director of any management company as this involves far more responsibilities than I am comfortable with, namely being listed at Companies House and being liable financially and legally for all the Management companies dealings. Is this common?

I think it's reasonably common. Would you prefer everything was controlled by your neighbours?

The 'legal pack' from the seller has been sent to me as an online PDF portal of over 20 documents. I am not happy to just go and view the documents online.

Why not? Have you even checked what the documents are?

I've asked my solicitor to print them all off for me and send me all of them, after all, they're being paid a bomb so printing 20 documents will start to get me a bit of extra value for money maybe :cool:

And maybe they'll charge you extra for the big unnecessary print job.

richy4

Why would I want to be a Director of a Management Company, to be liable financially and legally for all its decisions whether or not I agree with them? Sounds a step too far. What is the point in every resident becoming a Director? So there will be over 60 Directors, sounds like it will be a shambles to get agreement on anything if so many parties involved.
http://www.telegraph.co.uk/finance/yourbusiness/2924020/Amateur-directors-face-legal-land-mines.html

It is hard to properly view plot maps, detailed maps of the development and such like on just a computer screen. I would prefer these printed as formal documents, maybe I'm old fashioned.

big unnecessary print job

That's your opinion, but may come in very useful in the future when there's a dispute about anything and by chance or deliberately or for whatever reason the online portal of documents has been removed or cannot be accessed. Just a sensible thought...

davidmcn

richy4 wrote: »

Why would I want to be a Director of a Management Company, to be liable financially and legally for all its decisions whether or not I agree with them? Sounds a step too far. What is the point in every resident becoming a Director? So there will be over 60 Directors, sounds like it will be a shambles to get agreement on anything if so many parties involved.

But that's how the development is going to be run, whether you like it or not. So even if you have the option of not becoming a Director, your neighbours will be and you'll have to pay the bills they send you. You do understand the limits on the liability of company directors?

It is hard to properly view plot maps, detailed maps of the development and such like on just a computer screen.

Sometimes it's easier as you can zoom in rather than be restricted to whatever you can fit onto A4/A3 paper. And I'm sure not every page of the documents is a map, so why not just print the pages you're interested in rather than everything?

I would prefer these printed as formal documents

They don't become any more "formal" just because they're on paper. They're merely a print-out of a pdf.

That's your opinion, but may come in very useful in the future when there's a dispute about anything and by chance or deliberately or for whatever reason the online portal of documents has been removed or cannot be accessed. Just a sensible thought...

Just download the documents and save them somewhere (multiple locations if you're paranoid).

FIRSTTIMER

The leasehold situation is the norm nowadays - I am exchanging shortly and I am in exactly the same position.....hello directorship....


The pdf situation - in the modern world we now live in - say bye bye to paper and hello to paperless and email.

G_M

I also doubt you have a choice. You buy the property and become a Director, or you don't buy the property.

That's how the management has been set up, and it pretty common. Frankly, far better than being beholden to a commercially-oriented company who you have to pay for the management, and over whom you'd have limited control.

By allmeans ask your solicutortoprint the documents. They might agree, they might agree subject to payment or, less likely, they might refuse.

giraffe69

It is hard to properly view plot maps, detailed maps of the development and such like on just a computer screen. I would prefer these printed as formal documents, maybe I'm old fashioned.

I can understand why you might prefer to see at least some of them on paper but not why you can't print some or all of them out. I would be surprised if the solicitor does not think that would attract an extra charge.

nicmyles

When I owned a leasehold flat, I would have killed to have a management company made up of the leaseholders. This is a massive benefit to you and you should be delighted the developers are not putting their own nominated management company in place. You will have a share and voice in decisions made that will directly affect your finances, rather than simply receiving an invoice a couple of times a year that you may or may not feel is justified for whatever services you have received.

On the online documents - this is completely normal and completely acceptable. Just save the pdfs somewhere. You could also ask your solicitor to post you the originals after the transaction is complete if you're concerned. But given that they need to retain the documents during the transaction, all they would be able to do is photocopy them for you anyway. What a waste of paper!

AnotherJoe

richy4 wrote: »

2. The 'legal pack' from the seller has been sent to me as an online PDF portal of over 20 documents. I am not happy to just go and view the documents online. Especially as a FTB. Is it common for sellers to simply say yeah all the documents are online, you go and look at them and print them at your own expense?! I've asked my solicitor to print them all off for me and send me all of them, after all, they're being paid a bomb so printing 20 documents will start to get me a bit of extra value for money maybe :cool:

That could backfire badly if they charge you for that !! :eek: You might want to check if there is a charge (for the time and the printing) and rescind that request if there is. 20 documents also sounds a very high number.

Why cant you you download them and look at them on your PC/tablet? Is it necessary to print them to read them? I presume you haven't printed this out to read it?

G_M

AnotherJoe wrote: »

....... I presume you haven't printed this out to read it?

What? Eh?!

You mean some of you read these forum postings on your computer monitors? Without printing out each 'thread' each time it is added to by another 'poster'?

I suppose I could try doing that but it would cost me a fortune in kitty litter as at present I shred the print-outs each evening and use it to line the kitty tray.

andyf1980

FIRSTTIMER wrote: »

The leasehold situation is the norm nowadays - I am exchanging shortly and I am in exactly the same position.....hello directorship....


The pdf situation - in the modern world we now live in - say bye bye to paper and hello to paperless and email.

Yup, we are in the same situation too - both the management company and PDF; I just printed them myself so I could mark them up.