CML Handbook breach spotted post completion

28tsw

What happens if a lender discovers that the CML handbook was breached by solicitor negligence but years after completing? 

I mean for the person paying the mortgage - I would imagine solicitor would be removed from lenders panel. Can the mortgage be pulled after completion?

ACG

I suppose it depends on the issue.
If the solicitor did not do money laundering checks and your deposit came from illegal sources, they could pull the mortgage.
If you had buildings but the solicitor did not check prior to completion, nothing would happen. 

davidmcn

If the lender hasn't suffered a loss, I very much doubt they'd be interested. Lenders are generally stuck with the mortgage even if they're aware of a problem after completion - it's only going to become their problem in the unlikely event that they repossess.

Are you going to tell us what the breach is? Firms don't get kicked off panels merely for making mistakes once in a while.

28tsw

Solicitor didn’t check for building regs on a new build and should have as they weren’t signed off.

davidmcn

28tsw said:

Solicitor didn’t check for building regs on a new build and should have as they weren’t signed off.

Like I said, it's only a problem for the lender if it ends up being the reason they suffer a shortfall on repossession. Which is unlikely, as there are probably relatively cheap ways round it.

And from looking at your other thread, it appears that in practice everything is in fact fine (and the council has issued a letter of comfort), I can't see that the lack of an actual certificate matters a great deal either way.

Are you sure a certificate would have been issued before completion of the purchase anyway? My experience of newbuild properties (in Scotland, elsewhere may well vary) is that although you get told the property has been "signed off", the actual issue of the certificate can take a while, sometimes until the rest of the development is complete.

MovingForwards

Back history:

https://forums.moneysavingexpert.com/discussion/6189237/no-completion-certificate#latest

28tsw

davidmcn said:

28tsw said:

Solicitor didn’t check for building regs on a new build and should have as they weren’t signed off.

Like I said, it's only a problem for the lender if it ends up being the reason they suffer a shortfall on repossession. Which is unlikely, as there are probably relatively cheap ways round it.

And from looking at your other thread, it appears that in practice everything is in fact fine (and the council has issued a letter of comfort), I can't see that the lack of an actual certificate matters a great deal either way.

Are you sure a certificate would have been issued before completion of the purchase anyway? My experience of newbuild properties (in Scotland, elsewhere may well vary) is that although you get told the property has been "signed off", the actual issue of the certificate can take a while, sometimes until the rest of the development is complete.

No we have checked and it’s no existent/not requested. We are mid complaint with the builder and hoping they sort it. It appears everything was done except print out confirming everything was done.

I see your point about the letter but we have not had a reply from the buyer in over a week about it. I’m already stressed at prospect of a lockdown and then this... my six years to complain is up next week too.