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Re-Sale of Properties with Title Deeds

Posted: 11 Jun 2013 20:46
by Max 56
What is the responsibility of a solicitor when handling a resale of a property that is part of a community, to ensure that the sellers communal service charges are paid up to date, before being sold?
Do they have any responsibility to contact the Management Company to check for any due service charges. Also who is responsible to advise buyers of the service charges involved on a resale on a communal community?

The properties involved have Title Deeds, so developer is no longer involved in re-sales?

My question is are property solicitor required by law to contact Residents Committee/managers to check what is owed?

Thank you.

Re: Re-Sale of Properties with Title Deeds

Posted: 11 Jun 2013 23:11
by Nigel Howarth
Hi Max,

A lawyer is only obliged to to do what you instruct him/her to do. If you are buying or selling a property, you need to instruct your lawyer accordingly - in writing.

And if a property has been issued with Title Deeds, there is no need to involve the developer (assuming the deeds are registered in the name of the vendor).

Regards,

Re: Re-Sale of Properties with Title Deeds

Posted: 12 Jun 2013 12:44
by Max 56
Thank you for response. So if I understand it correctly when a property is being sold on a community the owner has no legal obligation to tell solicitor they owe communal fees and the solicitor has no legal requirement to check with committee if any funds are owed, before property is sold?
The reason for this question is that a property has just been sold on our complex and the solicitor contacted the Developer for any overdue communal service charges but did not contact the residents committee. As on this complex we have two lots of charges to pay.
The reason for the question is that if this is the case we will need to research on how we can ensure that owners selling have paid up to date, as it appears we cannot rely on the legal system?

Re: Re-Sale of Properties with Title Deeds

Posted: 12 Jun 2013 15:46
by Nigel Howarth
As far as I am aware there is no legal obligation on anyone to divulge this information.

Maybe worthwhile speaking with a lawyer about this issue.

Regards,

Re: Re-Sale of Properties with Title Deeds

Posted: 03 Jul 2014 21:58
by svensson2
Hi Nigel,

If I purchase a property and find out that the previous owner has outstanding communal charges on it, am i liable for those as the new owner?

Regards

Steve

Re: Re-Sale of Properties with Title Deeds

Posted: 04 Jul 2014 09:49
by Nigel Howarth
Hi Steve

The fact that the previous owner owes communal charges is something that your lawyer will discover as part of the due diligence.

(Note that one thing the Management Committee can do is lodge a memo against the title of the property for unpaid communal fess - thus preventing its sale until the monies have been paid).

But if you have a less than professional lawyer unpaid fees may escape their notice and, I believe, the new purchaser would be liable to pay - and assuming the Management Committee didn't lodge a memo.

Regards,