Arrears Notices on Land Registry Docs

bamgbost

My FIL is in process of trying to sell his flat.
He has a buyer and they are going through the motions with solicitors.


However, it has now emerged that a notice has been placed on the property by the Council for historic a Council Taxes owed.


Therefore this needs settling before further progression. This amount is a huge amount.


My Q is:


Is there any way that an agreement can be made with all parties involved (Buyer, Seller, Creditor), that immediately from proceeds of sale, these amounts will be deducted before anyway monies are released to the Seller???


Has anyone seen or experiences this before.??

wantonnoodle

I assume you mean that the council has placed a charge on the property.

When a property is sold, it is normally part of the conveyancing process that all charges are released. If a property has a mortgage on it, this will be the first charge in most cases, and will be released first, using equity from the sale. Any remaining equity from the sale will then be used to release subsequent charges on the property in the order in which they are held on the title deed. So therefore, in answer to your question, yes, the council will be paid off from any proceeds, as long as any prior charges (mortgages etc) have been released leaving sufficient enquity.

I'm not sure what happens if the charge is for a greater amount than the equity from the sale though I would expect in this case it would then fall to your FIL to cover any shortfall out of his own pocket.

silvercar

I'm not sure what happens if the charge is for a greater amount than the equity from the sale though I would expect in this case it would then fall to your FIL to cover any shortfall out of his own pocket.

Correct. The council will refuse to withdraw the charge until either all the money has been paid or they have agreed a repayment schedule they are happy with.

Common procedure for the procedes of a sale to be used to clear the charges.

You (or solicitor) need to contact the solicitor need to contact council to find the total amount required, as it may include interest to date.