Flat purchase- Maintenance company error preventing Land Registry update

sudders17

Hello, a request for a little advice as I don't know where I stand on an issue with my flat purchase, hoping someone may be able to help!

Long story short, the maintenance company for the building made an error during the sale and are refusing to transfer ownership to me unless I pay more money, two months after I completed.

To elaborate as clearly as I can:

I purchased a flat last year and completed at the beginning of September 18, I paid all the fees and all seemed fine. Nearly two months later I received a call from my solicitor saying there had been an error preventing them from lodging my application to purchase with the Land Registry and they urgently needed me to sign and return a deed of covenant. They wanted me to come and sign it that day, I happened to be away for a few days so they said they'd post it to me. I did ask what the error was, they said something to do with the Maintenance company and they were very apologetic - fine I thought, I’ll sign and return as soon as I get back.
When I did get home there was a covering letter attached to the deed, with a very long explanation and an outstanding figure for me to pay of just under £200. In a nutshell the Maintenance company seem to have calculated one of their fees incorrectly, they realised a few months later and are refusing allow ownership to transfer to me unless I pay the difference. I went back and checked all the paperwork, I paid everything as originally quoted, I can’t see how I could possibly be in the wrong/why I should be responsible for this. But I have no idea what my rights are/if that is how it works in practice! :S
The last conversation I had with the solicitor I said I would sign and return the deed, but I wouldn’t pay the extra as I didn’t think that was reasonable that I was being chased for more money two months on, I asked them to go back to the maintenance company and sort it out with them. My solicitor is blaming both the Maintenance company and the sellers solicitor for not spotting or correcting the error, but they are just coming directly to me asking me to pay the shortfall.

Thanks in advance for any help, just hoping someone might have a little experience and can advise whether I’m wasting my time resisting paying this. I’ve tried to keep it as brief as possible, but quite happy to provide more detail (such as the long explanation from the solicitor) if necessary.
Richard

G_M

£200? Pay it and get your ownership registered. Not worth the hassle.


Sounds like an outstanding service charge fee.The leaseholder is liable and that is (you hope!) now you - or soon will be.


You could try reclaiming it off the seller. Or your conveyancer. But.... £200.....??

davidmcn

If you've already had a long explanation from your solicitor, then why do you "have no idea what my rights are/if that is how it works in practice"? Isn't that what your solicitor has explained to you?

cattie

You need to clear the debt & be done with it. Mistakes happen & it doesn't mean because an error was made you don't have to pay the amount outstanding.

If you'd over paid by £200 & it was only discovered 2 or 3 months on, I'm sure you'd expect the money to be refunded to you & not kept by the management company & have them deciding they should keep it as they didn't think it fair that you should have the money credited to you as a couple of months had passed without it being noticed.

If you want to risk your purchase never being registered & perhaps even being pursued through the courts for the money due then that's up to you, but I think I know what the majority of sensible & honest people would do.

sudders17

Hi All, thank you for your responses.

Whilst I appreciate it can seem like a trivial amount, when you've spent everything you have just to make the purchase and cover all the various fees it makes a difference.
Just to clarify a few points
"Sounds like an outstanding service charge fee" - it's not, the management company have clearly stated it was an error in a calculation of one of the fees.

"Isn't that what your solicitor has explained to you?" - no it was just a long explanation that it was a miscalculation by the maintenance company and should have been picked up by the sellers solicitor.

I think the main reason I take issue with this is I checked, signed and paid everything correctly given the information I was provided. Before the purchase the management company quoted all their numerous fees and advised that if I had any questions they would answer them for £50 + VAT per question. Then the solicitors charge all their fees, which I thought was to ensure these errors don't occur. You pay them a lot because they are experienced and qualified it these matters. I can't see that I had any chance of knowing there was an error.

Anyway, I take the general sentiment that I should just pay so I'm losing the desire to challenge it.

Tiglet2

When there is a change of ownership, management companies usually insist on the new owner entering into a new Deed of Covenant. The management company then requires that to be signed and returned along with their fee once completion has taken place and the various notices have been served. There is always a fee (+ VAT) for this and it is for the new owner to pay.

The question is probably to look through your paperwork and see if there is any mention of the Deed of Covenant within the documents and the cost to administer it. This is not a cost to be borne by your solicitor, however, there does seem to be some confusion over whether you were originally quoted the wrong figure to administer the Deed of Covenant or whether the management company, the seller's solicitor and/or your solicitor omitted to let you know that the management company required it. You may be able to obtain a small amount of compensation from your solicitor if this was their error but please take note that the Deed of Covenant will need to be done.

In any event, one thing is certain and that is without the Deed of Covenant in place, the management company will not change the ownership to you, will therefore not address service charge bills to you and your solicitor will not be able to register you as the owner at Land Registry.