Incorrect sales pack during purchase of flat

bluebird_uk

Me and my partner recently purchased an ex-council flat. After our offer was accepted by the seller, they requested a pre-sales pack from the council (the freeholders). This stated a recent section 20 charge, which the seller agreed to pay, and no other charges. The remainder of the sale went smoothly.

30 mins after completion the seller's solicitor emailed our solicitor about a new pre-sales pack which they had just received. The council had generated a new sales pack after we had exchanged and sent it to the seller's solicitors just before completion. This new sales pack contained additional substantial section 20 charges dated over 5 years ago.

Our solicitor reached out to the council for comment. The council then admitted fault - that the original sales pack we used during the sale was incorrect, but that because the new sales pack was generated before completion we will have to pay.

Me and my partner are incredibly worried about this. We are first time buyers and all of our savings have gone on the purchase of our first home. If we had been informed about these charges we would never have gone ahead with the sale as we cannot afford them.

Advice on what we could do would be greatly appreciated.

JoJo1978

What does your solicitor advise? It sounds like the council are correct and it is either the fault of your sellers solicitor (for not notifying your solicitor between exchange and completion) or your solicitor (if the sellers solicitor did pass on the new information prior to completion.) Technically, since the charges are against a property you now own, I believe you are liable. But it doesn’t seem fair, hence my suggestion to ask your solicitors advice.

bluebird_uk

Our solicitor has advised that we begin litigation proceedings against the seller's solicitor in an effort to get them to take legal action against the council for breech of contract.

Our solicitor wasn't contacted about the updated sales pack until after completion. The seller's solicitors received the new sales pack via email several hours before completion but claim they did not read the contents of the email until after completion at which point they forwarded it to us.

Could we take this to the housing ombudsman? We are concerned that we are unable to afford legal action.

JoJo1978

I think you’re right to think twice about legal action. I’m not sure where you stand given that your complaint is against a solicitor that you didn’t commission, but if you managed to get your vendors on side they could make a complaint. I’ve not experienced any issues like this before but I’d be inclined to take this to a neutral third party, like the citizens advice bureau. See if they agree with your solicitors’ opinion. I’m also wondering if they may be able to help you explain what’s happened to the council, to try to get the charges stopped, or at least an affordable payment plan in place.

G_M

Even if the seller's solicitor had read the new sales pack, and informed the buyer, I wonder if that would have been grounds to rescind the contract (contract had been exchanged already)?

I don't know. But that might also be relevant.

I'd havee thought the buyer has a claim against the council, who made (and admitted) the error. Since the buyer relied on the erroneous pack in making their decision to buy, at that price, the council surely is liable for the extra unexpected cost.

bluebird_uk

Yes the contract had been exchanged before the new sales pack was even generated. Should we make a formal compliant against the council?

bluebird_uk

The seller's solicitors seem reluctant to take any further action. They are not licensed for litigation and have instructed us to take action against the council.

G_M

bluebird_uk wrote: »

The seller's solicitors seem reluctant to take any further action. They are not licensed for litigation and have instructed us to take action against the council.

How can they 'instruct' you to do anyything?

They are doubtless just concerned to pursuade you not to bring a claim against them, or their client.

So don't go taking advice from them!

bluebird_uk

I think this is why our solicitor is currently suggesting we initiate litigation proceedings against the vendors in an attempt to get them to complain or take legal action against the council. But we have no idea how successful this would be or if we could even afford it.

bluebird_uk

Could the housing ombudsman help with this?