Permission from Builder Needed to Sell House?

hollie.weimeraner

My son is currently in the process of buying a house and the solicitor has just informed him the current owners are waiting to get permission from the builder so they can sell. My son has also been told they will need the same permission if and when they come to sell.

I've never heard anything like this before so just wondering if anyone has any ideas what this is.

The house is freehold and in Lincoln

Also waiting to find out why from the solicitor but thought I may ask on here and see if anyone knew anything and any potential pitfalls.

I have now discovered it could be a covenant but can't delete the thread

JimmyChanga

Bob the Builder?

missile

It is always wise to carefully check covenants & Deed of Conditions before purchasing. Few of us do :-)

Mistral001

Could it be something to do with the defects period? The defects period is period after the building is completed in which the builder is contractually required to remedy all defects found during the defects period. The defects period usually lasts one year.

Jackmydad

Personally, I'd either want the covenant lifted, or I'd walk away.

billy2shots

Is it a newish build? If so there might be an annual service charge paid to a management company who need to give the ok. This is to make sure people pay the change each year. Permission will not be granted until all charges are paid and up to date.

getmore4less

Suspend all payments till this is resolved and you understand what the impact will be going forward.

If they can't sell what else can't they do.?

stragglebod

Covenant relating to the original transaction being at a discount?


Wait for the solicitor to explain, it's what your son is paying them for.

hollie.weimeraner

stragglebod wrote: »

Covenant relating to the original transaction being at a discount?


Wait for the solicitor to explain, it's what your son is paying them for.

That's what they're doing but until today I'd never heard of anything like this.

Jackmydad

stragglebod wrote: »

Covenant relating to the original transaction being at a discount?


Wait for the solicitor to explain, it's what your son is paying them for.

Just thinking about this again.
It's not an "affordable housing" covenant is it?
In that case, as I understand it, the price is capped at a percentage of the value "in perpetuity"
So whenever it is sold it will be at a percentage of market value, no matter how many owners it has.
That won't be open to negotiation as I understand it. I don't have legal training though.

It needs discussing with the buyer's solicitor.

dj1471

I've seen a similar thing once before. There was a covenant requiring the original developer to be given first refusal when the property was sold, in case they wanted to buy it back. It's crazy what some people will agree to! Hopefully not something so daft in this case...