Author: Nick Powe

To ensure parties to a contract for the sale or purchase of property or land complete on the date set in the contract for completion, there is usually a contractual condition covering what happens if either party does not complete on the completion date or by the completion time.

If completion does not take place on the correct date and by the correct time, the party not in breach will have their solicitor serve on the defaulting party’s solicitor a notice to complete, making time of the essence. This is usually 10 working days after service (depending on the contract conditions) and will require the party in breach to pay interest until completion takes place. Depending on contract conditions this may involve other payments on a daily basis until completion takes place.

If the defaulting party pays the amount before the expiry of notice, completion takes place, and the parties move on the date when breach is paid.

If when the notice expires the contract remains uncompleted, then the party not in default may terminate the contract and forfeit the deposit, and claim damages for any losses that may have occurred and which are covered by the contract if the buyer does not complete. However, if the seller does not complete, then the buyer will have to recover their deposit and claim damage flowing from the breach such as abortive costs and the cost of finding alternative property to buy etc.

Your solicitor will have to advise you if a transaction does not proceed after the breach and this may include other remedies such as specific performance and prevent other parties buying in place of the innocent party.

For all your property needs, contact our friendly team of solicitors at Aston Bond on 01753 486 777 or come down to our offices at Windsor Crown House, 7 Windsor Road, Slough, SL1 2DX.

 

Nick Powe, Senior Property Solicitor

 

Recently we were acting on a sale and purchase of a property. The sale completed by 11am and the money went to the seller’s Solicitor via the banking system at 11:15. This went into the solicitors client account and the clients were notified by the seller’s solicitor in the usual way. At 12 noon, the seller’s solicitors informed us they had not yet got the money but promised to check with their bank see why it had not reached them. By 12:30 they said that no money had yet been received, and could we check whether it had been sent by our bank, which it had. We asked the sellers Solicitor to check the account number they had given us. They then realised us that they had given us the wrong client account number, and still could not release the keys until the funds were received by them, even though the error was theirs. It then took over 2 hours without the client being able to move, and for our bank and the seller’s Solicitors bank to sort out the issue. The problem all stemmed from one error; the seller’s Solicitors providing the incorrect account number.

Finally the banks found the money in the incorrect account, and moved it to the seller’s Solicitor. Completion then took place a few hours later, due to a simple error which involved many calls, emailing and took up far more time than it should have. This also delayed the buyer’s removal company from doing their job as intended, due to the long delay.

The conveyancing process is made far more difficult when human errors are a factor, and the solutions to such issues is often complicated and time consuming.

 

Nick Powe, Senior Property Solicitor 

npowe@astonbond.co.uk

Flying freeholds exist where two freeholds overlap with one another. Problems can occur when common passageways exist, particularly in ex-council owned properties. Passageways providing access to a rear garden or parking area were often built underneath houses, with a separate passageway above. They were built in this manner to cut costs, and while they don’t usually pose a problem when the property is rented, it can become difficult when the property is sold under the ‘Right to Buy’ scheme.

 

Potential problems that can occur

• Passages only work if used for the purpose intended and whilst there is cooperation regarding maintenance, repair and access.
• Putting a padlock on the access to the passage may be useless to other owners and may prevent sales.
• Lack of use may mean the access is lost due to being abandoned by a user over a long time period and may become difficult to reinstate when it comes to the sale.
• Changes in lifestyles, for example when a shared driveway is in use, can prevent a house being extended.
• People may not be using the shared parking areas as intended, for example they may be parking unused or abandoned vehicles there.
• Drastic action in the courts may be necessary to regulate but could be expensive.

The above is not a comprehensive list, as anything shared by unrelated people can cause problems in the future as disputes have to be notified when a property is sold.

 

Solutions for purchasers

There are ways for purchasers to get around this issue of flying freeholds:

1. Purchasers can enter into a Deed of Mutual Consent with others who use the property, but this is cumbersome as both parties have to be available to sign when each property is sold. This method also relies on co-operation between the property owners, which isn’t always forthcoming.

2. Flying freehold indemnity insurance covers lenders for any loss in value incurred as a result of a lack of maintenance or repair of the adjoining property. It is a cheap fix to cover future sales with only top-up cover needed during the policy term.

3. The Access to Neighbouring Land Act 1992 can allow access to the other property for the purposes of a quick maintenance or repair but it is imperative that the other property is not improved or disturbed.

 

For help with your property matters, contact Aston Bond today by popping into our offices at Windsor Crown House, Slough, SL1 2DX or giving us a call on 01753 486 777.

 

Nick Powe, Senior Property Solicitor