Seller solicitor hasn't removed charge from property

JohnnyZee

Hi,

My flat purchase completed in May 2017. However, my solicitor has not been able to register the title to my name over 4 months after completion.

This is because the seller's solicitor has still not removed all the charges from the title register. The previous owner's housing association is still on the register (he had acquired the property via the Help to Buy scheme). Even though the seller's solicitor had taken an undertaking that all charges will be removed at completion, the housing association name is still present on the register. I have asked my solicitors to push the other side but nothing seems to be happening.

Could you please let me know what are my options? Also, is there any downside of a delayed registration of the property in my name? Any assistance would be really appreciated. Many thanks.

3mph

I completed at the end of March but I am still not registered due to the dogs breakfast my solicitor made (she left and these are the words of the Senior Partner who is trying to sort it out)

As I understand it, it will all get resolved and the LR are aware.

I rang the LR to try and find out why the previous owner was still shown as the leaseholder to be told my solicitor had only done part of the job. The LR were very helpful and understood my concern at the thought that not only did the records show that the last owners still owned it, but that the charge of their mortgage had been removed and of course I had just contributed £0.5 million to them.

But the only real issue I think is that as I am not registered with the Management Company then the previous owners are still the registered beneficiares under the building insurance.

TBagpuss

If the solicitors gave undertakings then they have to comply with them, even if it means paying the cost themselves, rather than getting the money out of their clients.

Speak to your solicitor again to clarify what steps they have taken so far and what, if any, response they have had.

It may be that things are moving, but slowly. If not, it may be that you need to speak to your solicitor about involving their litigation department rather than the conveyancers dealing with it further. Talk to them about what steps they are taking and what they recommend you do next.

G_M

If the solicitor breachs his 'solicitor's undertaking', then utimately you could complain to their professional body who could
* instruct them to honour the undertaking
* reprimand them
* strike them off

Do you by any chance know the costs involved? Might it be that the solicitor expected the purchase price they received to be sufficient to pay off the Charge - and it was insufficient?
* actually you're unlikely to knoww (or be able to find out and
* the solicitor should have checked before giving his undertaking!

I would write a firm but polite letter to your solicitor, insisting that they escalate the matter with the other firm.

JohnnyZee

Thanks TBagpuss and G_M.

I spoke to my solicitor yesterday. They are giving reminders to the seller's solicitor who has yet to get the charge off the property (apparently the seller's solicitor has asked 'Target HCA' to provide a DS1 form so this charge can then be removed from the register. However, I don't think Target HCA has been responsive).

My solicitor has also threatened to report the other solicitor to the SRA. I have been told this is a big deal so the seller's solicitor will be acting promptly. However, I do not know how long this will take as they have already taken over 4 months and nothing has happened yet!

The purchase price I paid is a lot more than the the purchase price paid by the previous owner. So the charge should easily be covered.

G_M

JohnnyZee wrote: »

I spoke to my solicitor yesterday. They are giving reminders to the seller's solicitor
I deliberately used the term 'escalate'. This should no longer be going to the solicitor who gave the undertaking, but via the firms complaints procedure, or Senior Partner.

However your comments below make me alter my opiniion/advice.
who has yet to get the charge off the property (apparently the seller's solicitor has asked 'Target HCA' to provide a DS1 form so this charge can then be removed from the register. However, I don't think Target HCA has been responsive).
Ah! So not the solicitor's fault! He can't get the Charge removed without confirmation from the lender that they've received (all) the funds..... I imagine he paid them himself out of the purchase funds (as required by his undertaking) but deeds proof the loan is paid off (DAS1) from the lender to give to the Land Registry.

My solicitor has also threatened to report the other solicitor to the SRA. I have been told this is a big deal so the seller's solicitor will be acting promptly. However, I do not know how long this will take as they have already taken over 4 months and nothing has happened yet!
Are you still in contact with the seller? Can you ask them (politely!) to contact Target HCA to try to expedite matters?

The purchase price I paid is a lot more than the the purchase price paid by the previous owner. So the charge should easily be covered.

Hmmm.. yes but if they bought somewhere costing a lot more......

However that seems irrelevant. It seems to be Target HCA that's the problem.

JohnnyZee

Thanks G_M. I will contact the seller to see if they can expedite. Could I also contact Target HCA myself? Also, if they are not responding, can I complain to the ombudsman?

G_M

I doubt T HCA will respond to you as you have no relationship with them, either as client or professional.

Not sure which ombudsman applies. Having googled a bit, I now see this is not a simple mortgage redemption, it's a Help To Buy or similar government scheme (link below) which appears to have specific procceses for redemption.

Perhaps the seller and/or their solicitor did not precisely undertsand and/or follow that process.

https://www.rjharmer.co.uk/help-buy-target-customer-information-pack/

JohnnyZee

Thanks! Yes, it seems like the seller / his solicitor did not follow the guidelines. Doesn't this seem to be an example of professional negligence? And where does this leave me? Should I keep on waiting or do something...

aneary

Your solicitor has threatened the other solicitor with the SRA that is a huge deal if there is a problem the solicitor may have restrictions on how they practice and in the worse case won't be able to practice. The company will have a higher insurance bill next year regardless so I suspect they will be doing everything they can to put this right.