Legal charge on house purchase not declared

gmje

I have been trying to buy a property -over last 6mths  . neither the estate agent, vendor or vendors solicitor declared that there was a  council debt on HM Land Register . I have now lost my buyers because of this. I am aware that a sale of the property fell through in 2024 and can't help wondering if it was for the same reason . Ive spent money plus abortive legal fees. I wouldn't have proceeded had I known in the beginning . who should have told me? and at what point.

user1977

Well, what's the problem with the council debt? It's pretty normal for properties to have legal charges, it usually means they're mortgaged, and the debts get paid on completion. It's not something which would generally raise alarm bells.

mebu60

What did your conveyancer say about the existence of the debt? Why is it a concern? 

Not sure what a debt on your prospective property purchase has to do with your buyer pulling out of buying yours.

Are you saying you've pulled out of your purchase because of the debt issue and your buyer has gone elsewhere because you are no longer in a position to move? 

loubel

Nobody would usually tell you about debts against the property, unless you are saying that the seller is not intending to repay it and so it is to become your debt on completion?

kinger101

The vendor is required to tell you if you ask.  Not sure the EA would be required to disclose where they're aware as it's not really a material fact.

Why couldn't the purchase proceed?

It just means there's debt secured against the property.  Presumably the owner of that debt is keen for a sale.

singhini

If the council has put a charge against the property it should come off once the sale goes through and the sellers solicitor settles it -----> just like any other financial charge i.e. "discharge the charge"

Once that’s done, the property becomes free from that financial claim.

Please take this with a pinch of salt as i maybe completely wrong -----> its just what i thought happened. 

gmje

mebu60 said:

What did your conveyancer say about the existence of the debt? Why is it a concern? 

Not sure what a debt on your prospective property purchase has to do with your buyer pulling out of buying yours.

Are you saying you've pulled out of your purchase because of the debt issue and your buyer has gone elsewhere because you are no longer in a position to move? 

My buyer pulled out because it had already been ongoing for over  6 months and the estate agents said it would be a long process to sort the legal charge- and yes I  cant move now im not sold

daveyjp

If removal of the charge is lengthy it suggests a far more complicated scenario than a debt which is already satisifed or will be cleared when the property is sold, as that should be sorted very quickly,

gmje

daveyjp said:

If removal of the charge is lengthy it suggests a far more complicated scenario than a debt which is already satisifed or will be cleared when the property is sold, as that should be sorted very quickly,

is that likely to be more than the property is worth? I still cant understand why I wasnt told up front

kinger101

gmje said:

mebu60 said:

What did your conveyancer say about the existence of the debt? Why is it a concern? 

Not sure what a debt on your prospective property purchase has to do with your buyer pulling out of buying yours.

Are you saying you've pulled out of your purchase because of the debt issue and your buyer has gone elsewhere because you are no longer in a position to move? 

My buyer pulled out because it had already been ongoing for over  6 months and the estate agents said it would be a long process to sort the legal charge- and yes I  cant move now im not sold

The estate agent doesn't deal the the legal process.  Technically the vendor's solicitor just needs to be aware of the charge then retain and distribute funds to all debtors in preference to the vendor.

If the EA has caused the chain to collapse, id be reporting it via their complaints procedure.

But you mention 6 months already.  Why is this?  If the delays are partly your fault, e.g., took 3 months to find somewhere you liked  then largely to be expected.  I've been on both sides of this and understand people's patience is limited.

user1977

gmje said:

mebu60 said:

What did your conveyancer say about the existence of the debt? Why is it a concern? 

Not sure what a debt on your prospective property purchase has to do with your buyer pulling out of buying yours.

Are you saying you've pulled out of your purchase because of the debt issue and your buyer has gone elsewhere because you are no longer in a position to move? 

the estate agents said it would be a long process to sort the legal charge

Why would it be a long process? Why are you taking advice from the estate agents rather than your solicitor?