Certificate of compliance

nlolamil

I purchased a house in 2022. It was built  in 2018 and I’m the second owner. As it’s a new build there are estate charges of around £300 year. The house is freehold and I own all of it (with a mortgage).

Im coming up to remortgage and speaking to mortgage broker who has advised me there is a covenant on the deeds which means the management company need to produce a certificate of compliance in order for me to remortgage (or sell the house). I’ve contacted the management company about this and am sure there will be a charge for this.

My issue is that my solicitor failed to tell me about this restriction. I’ve checked my report on title. She had listed some restrictions with the management company - the need to pay their fees and need for approval for building work which I accepted.

However she didn’t mention this and in her conclusion at the end of the report says
‘the title to the Property is currently good and marketable; and
there are neither onerous restrictions or provisions affecting the Property nor other
matters of a legal nature that should deter you from proceeding in your proposed
purchase of the Property.’

Had I known that I need to obtain a certificate to remortgage or sell the property I’m not sure I’d have gone ahead with the purchase and would at the very least have negotiated further on price.

I feel I have a valid complaint with the solicitor to reimburse me any fees for obtaining a certificate and compensation for me purchasing a house without full information from her. I’m sure now it will be harder to sell in the future and / or worth less. I’d certainly have been very cautious had I been given this information and would probably have pulled out of the purchase. I’d already sold my previous house and was renting so I wasn’t in a chain and was in a strong position to buy.

Has anyone had any experience of this? Before I contact my solicitor and complain I’d like to know she should have made this clear to me before the purchase and included this in for in her report on title. Seems quite a big thing to have missed. 

user1977

Having to pay an admin fee once in a blue moon doesn't make the title "onerous" or materially affect the value of the property.

Even without the requirement for a certificate of compliance, you're going to have to involve the management company (and pay their fee) on a sale anyway.

gwynlas

As far as the solicitor was concerned you might have been buying a home for life and having to pay for a certificate of compliance might never have come up.
Because there is a management company you arre in a similar position to flat lease holders who have to pay for mnagement packs when selling.
The cost is a small one off sum in the same vein as estate agent commission or solicitor charges so saying that you would not have bought your property had you been aware is rather over the top

ACG

You would have been sent the deeds by the solicitor. 
I know most people do not read them, just like most people do not read the T&Cs of their mortgage or signing up for a phone etc. 

I had a look through my deeds, I can turn my house in to a Drs surgery or Dentists if I want but no other commercial property. 

I dont know where you stand, the solicitor did not deem it onerous, you do. They sent you the deeds (I expect), you did not read them. If you are unhappy speak to the solicitors and try to find out why it was not raised. 

You can then decide whether to take it further or not. I dont know what the outcome will be. 
It might also be worth waiting until you find out what the charge is. You could be getting stressed over an admin fee.