We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
Seller Breached Restrictive Covenant - What Next?
Barts23
Posts: 1 Newbie
Hi,
I am in the process of buying my first house and all looked to be going pretty smoothly. My solicitor flagged that there are some restrictive covenants stating that developer consent is needed for any modifications or alterations to the building, however this seems to be pretty normal so I have no issue with this.
The problem is that I have now been told a week before we exchange contracts that the extension that the seller had done wasn't authorised by the developer. I have been given a restrictive covenant indemnity policy, which the solicitor said is an answer to the problem (although I'd appreciate confirmation on this!).
I have told a few people about this issue, and the responses I've had vary between 'this seems fine, they probably took so long because solicitors are slow' and 'they've left this to the last minute to put you in an awkward position, you should slightly reduce your offer to reflect this sudden risk'. I was hoping for some impartial opinions, as to be honest I'm not knowledgeable enough about this to know if this reaction is sensible or a bit over the top!
Thanks
I am in the process of buying my first house and all looked to be going pretty smoothly. My solicitor flagged that there are some restrictive covenants stating that developer consent is needed for any modifications or alterations to the building, however this seems to be pretty normal so I have no issue with this.
The problem is that I have now been told a week before we exchange contracts that the extension that the seller had done wasn't authorised by the developer. I have been given a restrictive covenant indemnity policy, which the solicitor said is an answer to the problem (although I'd appreciate confirmation on this!).
I have told a few people about this issue, and the responses I've had vary between 'this seems fine, they probably took so long because solicitors are slow' and 'they've left this to the last minute to put you in an awkward position, you should slightly reduce your offer to reflect this sudden risk'. I was hoping for some impartial opinions, as to be honest I'm not knowledgeable enough about this to know if this reaction is sensible or a bit over the top!
Thanks
0
Comments
-
what age is the house? Is the developer still building in the area?
1 -
Isn't your solicitor giving you any advice? That is what you're paying them for, after all...
The risk is almost non-existent, and should be adequately covered by the indemnity policy. Dropping the price as well would be having your cake and eating a much larger one.0 -
My property had an extension put on it by a builder at least 24 years ago (we've been here 16.5yrs), we had to pay for an indemnity policy because there was on builders regs certificate and they built over manhole covers which are still accessible. It's caused no problems and we are awaiting to hear of our exchange of contracts today being completed.
The problem is that laws change over the years and things that didn't matter when things were built suddenly do but it's just a few more I's to dot and T's to cross.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.1K Banking & Borrowing
- 252.7K Reduce Debt & Boost Income
- 453.1K Spending & Discounts
- 243K Work, Benefits & Business
- 597.4K Mortgages, Homes & Bills
- 176.5K Life & Family
- 256K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards