Seller has CCJs against property

NY59

Hi,
I’ve been in the process of buying my first home since July. It’s been a long winded process but was due to complete November. The sellers solicitor realised on the date of completion that he didn’t get all of the sellers documents and stopped the completion. I am still waiting and had to get an extension on my mortgage offer which ends the end of February. Apparently we are now waiting for a figure from the county courts because there is a CCJ against the property. Does anyone know roughly how long I’m likely to be waiting at all please? TIA x

greatcrested

CCJs are against people, not properties.

Perhaps you mean the seller had a CCJ, which they failed to pay, so their creditor got the court to place a Charge against the property?

The Charge will have to be paid off either before, or as part of, the sale.

I have various bits of string in my kitchen drawer - which one is yours?

Thrugelmir

NY59 said:

Hi,
I’ve been in the process of buying my first home since July. It’s been a long winded process but was due to complete November. The sellers solicitor realised on the date of completion that he didn’t get all of the sellers documents and stopped the completion. I am still waiting and had to get an extension on my mortgage offer which ends the end of February. Apparently we are now waiting for a figure from the county courts because there is a CCJ against the property. Does anyone know roughly how long I’m likely to be waiting at all please? TIA x

Until the vendor can raise the money to clear the debt and obtain the release the charge . Then their solicitor will be unable to complete the transaction. There's a lot that you aren't being told. As it's none of your business I should add. 

bouicca21

‘Stopped the completion’ - really? Or failed to exchange?

Mutton_Geoff

NY59 said:

Hi,
I’ve been in the process of buying my first home since July. It’s been a long winded process but was due to complete November. The sellers solicitor realised on the date of completion that he didn’t get all of the sellers documents and stopped the completion. I am still waiting and had to get an extension on my mortgage offer which ends the end of February. Apparently we are now waiting for a figure from the county courts because there is a CCJ against the property. Does anyone know roughly how long I’m likely to be waiting at all please? TIA x

Have you already exchanged? If you, you're in an excellent position if completion did not go ahead as stipulated in the contract if "exchanged".

Angela_D_3

So just to clarify a charge cannot be cleared with the proceeds of the sale ?  It needs clearing separately?  

Tiglet2

The sellers solicitor realised on the date of completion that he didn’t get all of the sellers documents and stopped the completion. 

I assume you're referring to a charge on the property title?  If so, this would have been apparent as soon as the seller's solicitor obtained an up to date copy of the title, unless the charge was added in between draft contracts being issued and exchange.

The seller's solicitor will need a settlement statement for the charge and it will need to be repaid either before completion or out of the sale proceeds (assuming the sale proceeds are enough).  

eddddy

I suspect there has been some miscommunication.  I doubt that the seller's solicitor only found out about a charge on the property on the date of completion.

More likely, the seller's solicitor had been working on the problem for some time - but you only found out about it on the day that you thought exchange/completion might happen.

Is the seller's estate agent progressing the sale? It's probably worth phoning the EA and asking them to get an update on progress from the seller. (But bear in mind that the seller and/or the EA might 'paint a rosy picture' to try to discourage you from walking away.)

davidmcn

Angela_D_3 said:

So just to clarify a charge cannot be cleared with the proceeds of the sale ?  It needs clearing separately?  

No, it can be cleared from the proceeds of sale (after all, that's what happens with a normal mortgage) but the solicitor needs confirmation of the amount outstanding before completion can happen - they need to know that they'll have enough money to clear all the charges.

So in answer to the OP's question, it'll take however long it takes the (unspecified) creditors to give an up to date settlement figure - which could be anything from "instantly" to "weeks". And then you'll need to hope that they have enough equity to cover everything...

princeofpounds

Yes charging orders can be paid off with the proceeds of sale. The legal instrument is effectively the same as the charge a mortgage lender places on a property. It sounds like the vendor's solicitor didn't have the right paperwork to process it. They will need to confirm the charge and contact the beneficiary of the charging order to get it all arranged.