Told that apartment is in negative equity after signing contract!

The_Conductor

Also keep in mind- there is another property that the OP would be bidding on- had they access to the deposit that is sitting in someone's account.........There is an opportunity cost associated with all of this too.......

godtabh

The_Conductor wrote: »

I'd put a timeline on it to be honest (depending on just how much you want the house). I'd ring the solicitor- and advise that unless the letter of approval is forthcoming and the sale advanced within 10 working days (be reasonable- but firm)- that you expect the deposit returned, alongside compensation for breach of contract. I would also emphasise that if this is not progressed in the time frame that you *will* be seeking compensation.

The seller could not legally sign a binding contract to sell the property- in the absence of a letter of approval- so their solicitor fúcked up too. By rights the deposit should be released immediately- until such time as they are in a position to sign- which is something they never should have done at the current stage.

Put a timeline on this- draw a line in the sand that you're not willing to cross. You have the other house that you're interested in too- but not in a position to put a bid on, as your deposit is tied up by this numpty.

Why give 10 days. the other side is saying by the end of the week. That seems reasonable

The_Conductor

godtabh wrote: »

Why give 10 days. the other side is saying by the end of the week. That seems reasonable

If they don't have approval already- suggesting they'll have it by the end of the week- is wholly unrealistic- that was why I suggested giving it 2 weeks.

godtabh

The_Conductor wrote: »

If they don't have approval already- suggesting they'll have it by the end of the week- is wholly unrealistic- that was why I suggested giving it 2 weeks.

If they dont have at the end of the week as they say they will it would appear to me that have nothing and are unlikely to get anything

Peist2007

Peist2007 wrote: »

When that point has passed ie we are 4/5 weeks on and all outstanding matters leading to closing are finalised apart from the Bank consent

How can it be that contracts were prepared without the bank releasing the title?

I know of a case at present where contracts have not been issued months after sale agreed and all are blaming the delay on the bank for not releasing the title documents....

riclad

Expecting all this to be sorted in 10 days is not realistic,
give the seller a month to sort it out,
with your solicitor keeping you up to date every week,
re is there any info feedback, from the bank, seller, sellers estate agent .
How can the seller sign a contract,
unless he already has permision to sell the house at the price agreed,
from the bank,
and he has made a formal agreement to cover the difference ,
between the loan value and the house sale price .

jayjay2010

Hey guys, just an update:


Got an email from my solicitor saying that she has spoken to the sellers solicitor and he has assured her that with another property that the vendor is selling, there is plenty of equity to clear off the mortgage on this apartment (that I am buying).

Should I take this as good news or does this still suggest long delays?

Peist2007

Deleted User wrote: »

How can it be that contracts were prepared without the bank releasing the title?

I know of a case at present where contracts have not been issued months after sale agreed and all are blaming the delay on the bank for not releasing the title documents....

In cases where the Vendor Solicitor knows that he is selling all that comprised in a Folio. Delete General Condition 36 from the Contract for Sale and one or two others on identity/boundaries etc and you're good to go.

Peist2007

jayjay2010 wrote: »

Hey guys, just an update:


Got an email from my solicitor saying that she has spoken to the sellers solicitor and he has assured her that with another property that the vendor is selling, there is plenty of equity to clear off the mortgage on this apartment (that I am buying).

Should I take this as good news or does this still suggest long delays?

So it isnt in negative equity and the Bank's consent is no longer required as the mortgage will be simply being redeemed on closing?

The_Conductor

The issue is getting the agreement of the lender to release the deeds.
It could take several weeks (most of them have a monthly meeting) but it would appear there is no major impediment to it happening......?

Peist2007

The_Conductor wrote: »

The issue is getting the agreement of the lender to release the deeds.
It could take several weeks (most of them have a monthly meeting) but it would appear there is no major impediment to it happening......?

But if Contracts have been issued then title is known to some extent without the Deeds. It must be registered property comprised within a folio. If it were Registry of Deeds title the OP would never have gotten any contracts

spaceHopper

jayjay2010 wrote: »

Hey guys, just an update:


Got an email from my solicitor saying that she has spoken to the sellers solicitor and he has assured her that with another property that the vendor is selling, there is plenty of equity to clear off the mortgage on this apartment (that I am buying).

Should I take this as good news or does this still suggest long delays?

I wouldn't be happy about that they don't have good title on the property you are buying. I'd insist on the return of the deposit or at least that a new contract where they have hard deadline to close by or return the deposit. I'd be coming at it from the angle that they weren't up front about it from the get go.

Peist2007

Peist2007 wrote: »

In cases where the Vendor Solicitor knows that he is selling all that comprised in a Folio. Delete General Condition 36 from the Contract for Sale and one or two others on identity/boundaries etc and you're good to go.

Interesting. Does the fact that the vendors solicitor has not done so (the registered property is one folio), despite the urging of the purchasers solicitor to speed things up suggest that more is at play here than just the bank releasing the title documents?

jayjay2010

Update: I sent my solicitor an email expressing my disappointment about the whole situation. I also gave a deadline of 2 weeks for this to be sorted or my deposit to be returned.

Hope I don't mess things up but I think it had to be done!

Peist2007

Deleted User wrote: »

Interesting. Does the fact that the vendors solicitor has not done so (the registered property is one folio), despite the urging of the purchasers solicitor to speed things up suggest that more is at play here than just the bank releasing the title documents?

If it is registered title there is no need for any title documents from the Bank. They will likely consist of a folio dated the day the Deeds were sent into the Bank as security and some planning documents. The Vendor Solicitor will be able to ascertain from his client the planning history. A new folio and map can be ordered from Land Reg. Print a copy off the Land Direct site to send with the draft Contracts. Depending on your instructions re planning you can amend, delete or leave General Condition 36 as it is. Delete the special conditions re boundaries and force the purchasers to rely on the Land Reg folio dimensions and Contracts can be done and go out within half an hour with no need to wait for the Bank to follow on with the deeds.

Peist2007

Peist2007 wrote: »

If it is registered title there is no need for any title documents from the Bank. They will likely consist of a folio dated the day the Deeds were sent into the Bank as security and some planning documents. The Vendor Solicitor will be able to ascertain from his client the planning history. A new folio and map can be ordered from Land Reg. Print a copy off the Land Direct site to send with the draft Contracts. Depending on your instructions re planning you can amend, delete or leave General Condition 36 as it is. Delete the special conditions re boundaries and force the purchasers to rely on the Land Reg folio dimensions and Contracts can be done and go out within half an hour with no need to wait for the Bank to follow on with the deeds.

What you say sounds very logical but my friend put your earlier suggestion to his solicitor to be told that no way would he dream of asking vendors solicitor to prepare contracts on basis of folio as he would never do it himself and anyway it was all very complicated....
Soon he will be into his fifth month waiting for bank to supply title documents to vendors solicitor and all his solicitor can do is tell him to wait. Needless to say he wonders if there aren't some shenanigans going on...

jayjay2010

Update: no update really!

Letter from bank still hasn't arrived. Vendor's solicitor is away on holidays until the Tuesday after the bank holiday (very convenient).

So basically no change for the last 3 weeks.

Really fed up now! Was hoping to be moved in during the first week of June (which I was pretty much promised 3 weeks ago by my solicitor and estate agent)

Miamiheat

jayjay2010 wrote: »

Update: no update really!

Letter from bank still hasn't arrived. Vendor's solicitor is away on holidays until the Tuesday after the bank holiday (very convenient).

So basically no change for the last 3 weeks.

Really fed up now! Was hoping to be moved in during the first week of June (which I was pretty much promised 3 weeks ago by my solicitor and estate agent)

It is sad and nothing surprises me anymore. The process of buying in this country is less advanced than cavemen. 3 weeks passed since i cancelled my first purchase due to structural issues and I still dont have my booking deposit back. That is one agency who is NEVER going to get business from me. I will be happy to give their name by PM. And then another agency has not come back to me on an offer I made thursday 21st March! and that after calling the office 4-5 times and leaving my name and writing 2 emails. UN-FREAKIN-BELIEVABLE...
I will take 2 more months of this nonsense and if I dont buy during that time I will put my money elsewhere.