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Contract rate, land registry fee
franky000
Posts: 8 Forumite
Hey folks. I have a query on behalf of my parents who wish to sell a property. They recently had their solicitor register a freehold title on the land registry as the potential buyers requested this. However we received a letter from our solicitor that the buyer's solicitors have "not proceeded
to raise additional enquiries."
We've been sent a contract, plus a transfer deed to sign, "in the expectation that the buyer will soon be in a position to exchange contracts".
I note that in the contract terms, under Contract Rate, there's a reference to a "contract rate of interest" that will be payable if the sale falls through.
My question is, will this only be triggered when both parties sign a contract? Or could we still be penalised if we sign the contract, and the buyers fail to follow through and sign their own contract to proceed with the sale of the property?
..
With regards to the land registry, it was agreed that the buyer would contribute half the fee. Should they back out, would we be forced to cover the full amount now that the house has already been registered freehold? Or can we legally refuse this by not signing the contract?
...
My own inclination is to refuse to sign anything until the buyer's solicitors raise additional queries. Any advise would be appreciated.
to raise additional enquiries."
We've been sent a contract, plus a transfer deed to sign, "in the expectation that the buyer will soon be in a position to exchange contracts".
I note that in the contract terms, under Contract Rate, there's a reference to a "contract rate of interest" that will be payable if the sale falls through.
My question is, will this only be triggered when both parties sign a contract? Or could we still be penalised if we sign the contract, and the buyers fail to follow through and sign their own contract to proceed with the sale of the property?
..
With regards to the land registry, it was agreed that the buyer would contribute half the fee. Should they back out, would we be forced to cover the full amount now that the house has already been registered freehold? Or can we legally refuse this by not signing the contract?
...
My own inclination is to refuse to sign anything until the buyer's solicitors raise additional queries. Any advise would be appreciated.
0
Comments
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I think you're reading the situation wrong.
"Have not proceeded to raise additional enquiries" doesn't mean "additional enquiries are coming and things are risky without them", it usually means "all enquiries have been satisfactorily answered and they don't have any more questions".
The contract is only valid once both sides have signed their copies and the copies have been exchanged. Before that, nothing is binding or officially agreed.
Your solicitor is telling you that things are going great, the sale will be going through soon, and please can you sign this so we don't delay the process.0 -
I see, it was just the way the solicitor worded it...
"*Unfortunately** the buyer's solicitors have not proceeded to raise additional enquiries". A typo perhaps?0 -
That is very strange wording!franky000 said:I see, it was just the way the solicitor worded it...
"*Unfortunately** the buyer's solicitors have not proceeded to raise additional enquiries". A typo perhaps?0
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