Management Pack process from Management Co. Viewpoint

MichelleUK

The grounds/roads of a small estate of freehold houses are owned by a Management Company, limited by guarantee. The residents are the only members of the company.

One of the owners is selling and we have been asked by their solicitor to supply a FME1 form. I am comfortable with most of it but am a bit unsure of the legal documents. We intend to tick the box for the Deed of Covenant and Certificate of Compliance to be drafted by the buyer’s solicitor. I know that we have a few posters on here who do this for their own estates and wondered if you could say how you handle the process?

1. Do you charge a fee for this?
2. Do you involve your own solicitor or do everything yourselves?
3. Do you get a copy of the draft Deed of Covenant just to check that the correct details of the original TP1 etc are entered by their conveyancer?
4. At what point do you get the final signed Deed of Covenant and does this need to be filed at the Land Registry at all (I am thinking that it is not)?
5. The TP1 says that the Land Registry require a certificate signed by a conveyancer to allow the transfer to be registered – I assume that this is the buyer’s conveyancer.
6.  If 5. is correct, does the conveyancer get your permission before signing (just a bit worried if they sign it and we do not have the Deed of Covenant in our hands!)

Many thanks for any experience that you can share!

Superlala

Hello, currently in the process of buying a freehold house but we have been waiting 8 weeks for a management pack all this time,we have been chasing solicitors constantly for updates but still no luck as yet. Our solicitors is advising us to pull out from the purchase. I'm just wondering what sort of time frame we should be expecting to hear back and if anyone else is currently going through a similar situation? Just frustrating as were first time buyers and the seller isnt purchasing another house so no chain at all.

eddddy

Superlala said:

Hello, currently in the process of buying a freehold house but we have been waiting 8 weeks for a management pack all this time,we have been chasing solicitors constantly for updates but still no luck as yet. Our solicitors is advising us to pull out from the purchase. I'm just wondering what sort of time frame we should be expecting to hear back and if anyone else is currently going through a similar situation? Just frustrating as were first time buyers and the seller isnt purchasing another house so no chain at all.

Just to clarify - is your solicitor advising you to pull out, because the estate management company seem slow and unreliable (i.e. they take 8 weeks to provide a management pack)? Or for other reason(s)?

Or does your solicitor suspect that the sellers aren't serious about selling?



The seller's solicitor request the management pack. It might be a good idea to contact the seller (probably via the estate agent) to get their side of the story.

The seller can contact their solicitor to find out what's happening, and they can also contact the estate management company to see what they say.

(Is the estate management company a professional company - or is it managed by the residents, who might not be quite so professional?)

What has the seller's solicitor said to your solicitor about this - if anything?

Superlala

The seller solicitor isn't responding to our solicitor with a solid update from the management company. Seller solicitor just states we are still waiting. 

eddddy

Superlala said:

The seller solicitor isn't responding to our solicitor with a solid update from the management company. Seller solicitor just states we are still waiting. 

So, as I mentioned, contact the seller (maybe via the Estate Agent), and ask them to chase their management company.

Superlala

Thank you 

gm0

MichelleUK

I would not recommend DIY doing or checking this the for the first go if you are unsure on process or correct drafting.  Once familiar with it your director discretion can cut in.   Perhaps if you get enough detailed feedback here or elsewhere you may become confident.

With a Ltd with member residents on register. And somebody on point as current director.  You are expected to arrange things be done professionally and promptly.  If you carry PI insurance as director - this will also set boundaries. 

But you are not expected to do it yourself to save buyer or member owners a few quid. Or learn enough law to do so for free.

So engaging legal help for doing or for checking - will of course cost the company money.  Which needs to be recovered somewhere.  Ideally from the transaction in flight.

This "doubling up" of legal fees is not popular with anyone of course. 

But the buyer conveyancer is not contracted to or acting for you. 
Once a few have happened you may be more confident of current correct drafting and paper flow. 

A good idea to write some of that down so when you handoff the director role the whole cycle doesn't start again.

mlz1413

I bought a house last year, the sellers solicitors were as bad as most solicitors (I've yet to find a good one!!)
After numerous holidays by the solicitor and secretary finally the paperwork was nearly ready to exchange 3 months on and then and only then, did the sellers solicitors apply for the Management Company seller pack. These packs notoriously take time to receive. 

I was nearly at a point of walking away.  But instead broke the chain to allow the 2 below me to move.

In total my purchase took 5 months from accepting offer to moving in.

So I'm trying to say if you want the house just stick with it. Resign yourself to not get stressed as there is nothing you can do to speed it along. 

Very near the end of my purchase the seller started making demands on the move in date, even through it was her solicitor who had been the worst in the chain.  Keeping my temper in check was a close run thing at this point, living in a flat rented week by week surrounded by boxes for 2 months was not great for stress levels, but you get through it. 

MichelleUK

gm0 said:

MichelleUK

I would not recommend DIY doing or checking this the for the first go if you are unsure on process or correct drafting.  Once familiar with it your director discretion can cut in.   Perhaps if you get enough detailed feedback here or elsewhere you may become confident.

With a Ltd with member residents on register. And somebody on point as current director.  You are expected to arrange things be done professionally and promptly.  If you carry PI insurance as director - this will also set boundaries. 

But you are not expected to do it yourself to save buyer or member owners a few quid. Or learn enough law to do so for free.

So engaging legal help for doing or for checking - will of course cost the company money.  Which needs to be recovered somewhere.  Ideally from the transaction in flight.

This "doubling up" of legal fees is not popular with anyone of course. 

But the buyer conveyancer is not contracted to or acting for you. 
Once a few have happened you may be more confident of current correct drafting and paper flow. 

A good idea to write some of that down so when you handoff the director role the whole cycle doesn't start again.

Thanks gm0!

I was lucky and the seller’s solicitor very kindly answered my questions. I certainly intend to document all of the processes for the management company, especially as most of it currently is being done by me. I am a retired accountant and tend to research the living daylights out of everything, so it was comforting to know that I was on the right track after discussing it with the solicitor.