Misled by seller, what are my options?

heremyfriend

Hi, wonder if anyone in here can help.

I am in the process to purchase a freehold new build property (3 yr old). Have asked the seller (via estate agent) on two occasions whether there's a service charge payable, and was told nothing to pay on both occasions.

Now the house survey's done and my conveyancer noticed loads of restrictions on the land registry. Digging deeper into paperwork we discovered there's estate and community management charges payable annually, both are bound by deeds of covenant. Even on the property information pack, the seller claimed they haven't paid any charges. And in the latest correspondence, the seller's solicitor stated no service charges were asked or paid for by management companies.

I am still awaiting replies from the seller's solicitor, but given the situation I am unlikely to go ahead with the purchase. Is there any way I could claim part/all money spent from the seller?

Thanks from a (would-be) first time buyer

ThePants999

Nope. Zero recourse against the seller, sorry.

But the seller's solicitor isn't going to be lying. Sounds like the charges are theoretically due, but practically not collected. What does your solicitor say/recommend?

Chanes

You've learned a lesson: people may lie when they sell a property or hide details. Odds on getting anything other than a lesson...slim to zero, dust yourself off and remember for the next house you like the issues with this one.

For what it is worth, it sounds like you have had a lucky escape!

getmore4less

you could follow up(even if you pull out) and ask the management company why they have not been collecting charges?

Is there still building work going on(multi phases), might be the developer will had it over to a management company once the last house is sold and that's when the fun really starts, until that happens the developer is still keeping the places tidy.

Rambosmum

It's entirely possible that the seller is telling the truth from their perspective - they've never paid a service charge, they've never had a bill for a service charge and they are unaware that there is a service charge. Especially if they have lived there a while or had a lot going on at the time of the move, they 'knew' about the service charge but didn't take it on board, assuming they'd get a bill at some point, they haven't and have forgotten about it.

This is why you have solicitors when buying houses!

moneyistooshorttomention

That would be a very "convenient" "memory lapse" if so.:cool:

heremyfriend

Thanks guys for your response.

@ThePants999: have asked my solicitor not to do further searches until receive full answers. So far we haven't discuss about pull out, but I have emphasised that I was misled into the proceeding, and have instructed her to tell seller it's their responsibility to provide management company info, and not at the my expense.

@Chanes: yes lesson learnt. I do know most new build freehold have service charges, that's why I asked more than once before making an offer. Sadly that's not enough.

@getmore4less: yes that could be why, the whole area is on-going building site. Looking at the plan on previous TP1, there's loads of estate roads and private lamps/sewage network. Wonder how much it will cost when the builder moved out.

@Rambosmum: that might be so, but unfortunately their 'oversight' is costing me almost £1000 so far. On top of that there will be "certificates" that I need to obtain from builder and management companies in order to get it registered (another several hundred pounds). I wonder why no one talk more about these money making 'scams' online.

@moneyistooshorttomention: what can I say, life's a bit*h.

In retrospect, I wonder if I should've done things differently e.g. DIY/ask my solicitor to check the land registry before carrying out survey. Having spent two months and hope to complete at end of June, now back to house hunting, is so fustrating.