Developer consent to sell

esubbs

Is it usual for new build house deeds to contain a restrictive covenant requiring the housebuilders consent when the house is sold on?

Our vendor purchased the house from Bloor Homes in 2014 so it is the first time it has been sold (although quite a few on the estate have been sold, and using the same local solicitors too who you'd think would be fairly clued up by now). I am wondering how long we should expect to wait for this consent and if it's going to cause hassle when we come to sell in the future?
If its usual I would imagine Bloor Homes get these requests pretty regularly so deal with it swiftly. Or is that wishful thinking🤔

Despite knowing this was needed from the outset, it looks like their solicitor only requested it three weeks after my solicitor sent enquiries to them.

SarahB16

In my opinion this is unusual however is the house you are purchasing not a typical house which is being sold for its open market value?  Is this an affordable home, i.e. up to 80% of the market value of homes nearby?  Is the house freehold?  

daveyjp

Not unusual on modern freehold properties with a requirement to pay maintenance charges.

esubbs

Yes it's freehold, purchasing for full market value and not an affordable home.

We have been sent a copy of the deeds but a lot of it may as well be written in Greek as far as I'm concerned.
The enquiry my solicitor raised was "please confirm that you will provide the requisite certificate to deal with the Restriction contained within the Title" and the response is "we have contacted Bloor Homes in respect of this and await their consent"

esubbs

daveyjp said:

Not unusual on modern freehold properties with a requirement to pay maintenance charges.

No maintenance charges either.

Section62

esubbs said:

Is it usual for new build house deeds to contain a restrictive covenant requiring the housebuilders consent when the house is sold on?

I've seen it before and in those cases assumed the developer wanted to ensure the buyer was aware of all the restrictive covenants and that they were being fully transferred.

SarahB16

Section62 said:

esubbs said:

Is it usual for new build house deeds to contain a restrictive covenant requiring the housebuilders consent when the house is sold on?

I've seen it before and in those cases assumed the developer wanted to ensure the buyer was aware of all the restrictive covenants and that they were being fully transferred.

If this is the case then @esubbs you need to understand what the restrictive covenants are. 

I was also wondering if you would have to pay maintenance costs to a management company and that would have been my next question but as that has been answered above that is not the case. 

esubbs

A bit more clarification. 
Permission is needed due to a B3 restriction on the Title as follows:

(08.01.2014) RESTRICTION: No transfer or lease of the registered estate

by the proprietor of the registered estate , or by the proprietor of

any registered charge, not being a charge registered before the entry

of this restriction, is to be registered without a certificate signed

by Bloor Homes Limited that the provisions of clause 4.20 of

the Transfer dated 20 December 2013 referred to in the Charges Register

have been complied with.

Clause 4.20 is:

Not to transfer the property or any part of it without obtaining simultaneously to such a transfer the execution by the intending transferee of a deed of covenant between the intending transferee and Bloor Homes limited in the form laid down by Bloor Homes Limited from time to time.


So essentially we, and any subsequent purchasers, have to enter into a deed of covenant with Bloor Homes to say whatever Bloor Homes want it to say? And I would assume pay some sort of fee for the privilege.

Our solicitor mentioned this was something to do with the S106...

Section62

esubbs said:

So essentially we, and any subsequent purchasers, have to enter into a deed of covenant with Bloor Homes to say whatever Bloor Homes want it to say? And I would assume pay some sort of fee for the privilege.

Our solicitor mentioned this was something to do with the S106...

Essentially, yes.

As I suggested, clause 4.20 is about them making sure the (restrictive) covenants are properly transferred to the purchaser. (and they can vary them)

Is the S106 agreement anything to do with parking?  Is it a restriction on access to CPZ permits or something similar?

esubbs

Its apparently more to do with the fact the S106 is still in place and has not yet been discharged, so the developer has a duty to ensure all covenants are enforced so that its still complied with. Reading through the S106 the main agreement is provision of affordable housing green space and play areas, which looking at the planning permission v what's been built on the ground has been provided correctly. There's nothing that looks like it would directly affect our particular property or that gives us any concerns in it.

The deed of covenant we need to sign with Bloor Homes literally just says we agree to comply with the covenants in the original transfer. All the covenants seem to be the standard, don't keep chickens, don't buy a caravan, don't hang your washing out the front type of thing.

It really does seem to be a standard arrangement, I'm surprised no one else has come across it. But maybe once I've read the 250 page report on title the solicitor has just sent I might discover there's more to it.

Paynie94

Hi @esubbs,

Did you manage to get to the bottom of this. Only asking as we are in the process of buying a house and awaiting a similar 'pack'. So far it has been nearly 6 weeks since it was applied for. Did you have a similar wait?