Unilateral Notice on title

Jbon88

Hi,
I’m quite far into the purchase of a property, I’m a FTB all searches are back, mortgage and survey sorted and everyone’s ready to go. There is one outstanding enquiry that for some reason the seller’s solicitors aren’t tackling and has been the same for months.
There is a unilateral notice on the deeds and my solicitor has asked them to provide an ‘undertaking that this will be removed on completion’
The seller is saying verbally they paid for this to be removed on completion months ago and my solicitor is now holding up completion. All my solicitor wants is evidence that it will be removed but for some reason the seller’s solicitor keeps saying they will handle this in replies to requisitions. It feels like we’re at a stalemate and have been for a few weeks now. They are saying they have now responded to all enquiries and want to complete next week but I don’t think we can?!

Are my solicitors being over cautious or protecting me and doing the right thing?

user1977

If the seller has paid for it to be removed, why isn't their solicitor prepared to provide an undertaking? Or just to remove it now?

housebuyer143

Jbon88 said:

Hi,
I’m quite far into the purchase of a property, I’m a FTB all searches are back, mortgage and survey sorted and everyone’s ready to go. There is one outstanding enquiry that for some reason the seller’s solicitors aren’t tackling and has been the same for months.
There is a unilateral notice on the deeds and my solicitor has asked them to provide an ‘undertaking that this will be removed on completion’
The seller is saying verbally they paid for this to be removed on completion months ago and my solicitor is now holding up completion. All my solicitor wants is evidence that it will be removed but for some reason the seller’s solicitor keeps saying they will handle this in replies to requisitions. It feels like we’re at a stalemate and have been for a few weeks now. They are saying they have now responded to all enquiries and want to complete next week but I don’t think we can?!

Are my solicitors being over cautious or protecting me and doing the right thing?

What is the notice? Is it a charge?

A lot of charges need paying on completion but some do not and maybe this is one of them? I bought a house with some charges that did not need to be paid and the sellers solicitor only told us on completion day that was the case, and my solicitor freaked out thinking they needed to be paid etc.

Can you look at the title deeds and see what the notice is?

Jbon88

Thanks for replies

Yes it says it’s a charge registered, it says ‘UNILATERAL NOTICE in respect of a charge dated dd/mm/yy’ and then names the ‘beneficiary’ which is a lender

My solicitor says if we don’t have the undertaking it could be an issue post completion. I just don’t really understand if they say they’ve paid it why they won’t just send it through and are making out like we’re being difficult?

seems straight forward to me!

housebuyer143

Jbon88 said:

Thanks for replies

Yes it says it’s a charge registered, it says ‘UNILATERAL NOTICE in respect of a charge dated dd/mm/yy’ and then names the ‘beneficiary’ which is a lender

My solicitor says if we don’t have the undertaking it could be an issue post completion. I just don’t really understand if they say they’ve paid it why they won’t just send it through and are making out like we’re being difficult?

seems straight forward to me!

Potentially they haven't paid it then. There is some issue or they would give the undertaking.

Your solicitor is acting in your interest here. 
If the change isn't removed on completion or post completion you will be unable to register the house in your name. You will then be liable for a property you own yet can do nothing with. 

Jbon88

Ok thank you @housebuyer143

I’m hoping it’s a case of miscommunication on the seller’s solicitors part and hopefully we’ll get it resolved next week. I just felt like they were putting me under pressure to complete when they haven’t really done what they’ve been asked too 

need my solicitor to see that undertaking! 

Tiglet2

Usually when there is a Unilateral Notice on the deeds, it means that there is a loan to be repaid by the seller. 

The buyer's solicitor would expect the seller's solicitor to find out what company is owed the money and how much is outstanding.  The company would need to liaise with the seller or seller's solicitor to provide a settlement account and the seller would be expected to either pay it off before exchange, or if the seller doesn't have enough funds to do this, to pay out of the proceeds of the sale on completion. 

The problem with paying the loan off out of the sale proceeds is that it would be the seller's solicitor job to pay the loan off, but the buyer's solicitor can't register you as the new owner until after the UN has been removed.   If the seller's solicitor won't give an Undertaking (a legal promise) to assist, then the buyer's solicitor could find that the seller and seller's solicitor no longer respond to any issues once completion has occurred.  The buyer wants to sell in a few years time but finds that the title still has the UN registered with no way of being able to remove it without the seller's assistance but they now have no obligation to help, if they are even still contactable. 

It is risky for the buyer's solicitor, which is why they would insist on the Undertaking if the money owed and the UN is not removed before exchange.  The buyer's solicitor would not recommend the buyer to complete (no matter how much pressure the seller puts on the buyer) until there is a satisfactory resolve.

Woolsery

It's not just you your solicitor is acting for; your lender also has to be satisfied before releasing funds..

Jbon88

Thank you @woolsery and @Tiglet2 - really helpful explanations - I think I need to make this clear to the estate agent too so they understand why we’re pushing for it 

i certainly won’t be exchanging until my solicitor is satisfied and received the undertaking