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Auction Property Legal Advice
freddy911
Posts: 555 Forumite
Looking for some advice regarding an auction property I'm looking to buy, I will likely get a pre-auction solicitors report as its a complex situation but wanted to see if anyone knows some of the answers before I take it any further.
Basically the property is a Victorian semi that had a serious house fire. The previous owner was in bankruptcy at the time so I now believe it's the mortgage company that's selling whats left. After the fire a section 77 notice was issued by the council which was not complied with so it was torn down, so now basically is a plot of land.
What I want to know is as the new buyer is there any way I can become responsible for the costs of repairs to the adjoining house/party wall and also for the demolition costs of the previous building.
The legal pack states buyer will bear full responsibility for all costs but does not specify what costs so I don't know if this is just a general statement to indemnify themselves from any costs in future should claims arise.
Does anyone know if new buyers can become liable for costs incurred by previous owners negligence?
Thanks
Basically the property is a Victorian semi that had a serious house fire. The previous owner was in bankruptcy at the time so I now believe it's the mortgage company that's selling whats left. After the fire a section 77 notice was issued by the council which was not complied with so it was torn down, so now basically is a plot of land.
What I want to know is as the new buyer is there any way I can become responsible for the costs of repairs to the adjoining house/party wall and also for the demolition costs of the previous building.
The legal pack states buyer will bear full responsibility for all costs but does not specify what costs so I don't know if this is just a general statement to indemnify themselves from any costs in future should claims arise.
Does anyone know if new buyers can become liable for costs incurred by previous owners negligence?
Thanks
0
Comments
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If it was the council who instructed the demolition then they'll want to recover their costs (if they haven't already been paid).0
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Talk to the selling agents
Talk to the local council
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Have you gone and asked the other semi owner what they think?0
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If you have a read of section 77 of the Building Act, the answer is quite obvious. Namely that the costs are recoverable from the person on whole the notice was served.0
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If you have a read of section 77 of the Building Act, the answer is quite obvious. Namely that the costs are recoverable from the person on whole the notice was served.
Thanks for the reply, I did try to find the section 77 document to read but didnt find anything on the internet. So in this case that would have been the home owner, if the house was later repossessed is there any chance the mortgage company would become responsible for this or it would stick with the owner at the time?
Is the planning department that issues such notices?0 -
No, building control.Thanks for the reply, I did try to find the section 77 document to read but didnt find anything on the internet. So in this case that would have been the home owner, if the house was later repossessed is there any chance the mortgage company would become responsible for this or it would stick with the owner at the time?
Is the planning department that issues such notices?
I would normally expect any outstanding costs to be settled by the seller from the proceeds of sale, but auction contracts sometimes have sneaky conditions making the buyer liable for things which they wouldn't ordinarily be.0 -
No they make it clear the buyer indemnifies them of all costs, but as it's a repossession I didnt know if they just put that in as a general caveat to cover there as or they know that these costs exist.
I will try calling the builidin control department and see who they are expecting to cover the costs.0 -
I will try calling the builidin control department and see who they are expecting to cover the costs.
That probably won't help you much.
Building control will probably say that whoever owned the property at the time the notice was served has to pay the cost.
But if the auction special conditions of sale say that the buyer must pay the cost - if you buy the property, you are agreeing to pay the cost.0 -
What does the auction legal pack say?
Also have you downloaded the house deeds to see if there are any charges on the property?Find out who you are and do that on purpose (thanks to Owain Wyn Jones quoting Dolly Parton)0
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