• Charges Clause In Contract

    By Guest on 28th May 2019

    We are buying a property with a charges clause in the contract. The owner is in a home and the son initially had power of attorney, he has since died. The daughter has POA over all matters with regard to sale of property.

    Within the contract there is a clause for the buyer being responsible any charges on the property whether known or not.

    We are concerned over the contents of this contract with this clause and are worried over the financial enormity of it and how it affects us in the future.

    As the original owner is in care, could we be affected by a charge for his care. We do not know if the payment for his care is deferred or is linked to the house even if sold and we become subject to these charges.

    If any previous dealings with the local authority or through business could have a financial claim/charge on the porperty.

    We just do not know, any advice/help ?

    Many thanks

    Ian

  • 1 Answers

    By Guest on 29/05/2019

    Your legal representative should be able to assist with your enquiry, as much will depend on the circumstances of the case and our advice here can only be of a general nature.

    I advise asking the seller's lawyer to confirm in writing whether there are any charges with the council, after making due enquiry with them. You should also carry out an official local search. The seller's lawyer should also give an undertaking to remove any known charges on the property. Make sure you carry out a priority search (OS1) prior to completion to ensure no charge is in the process of being registered on the property.

    I suspect if the property is sold to you at market value as a bona fide purchaser the council would not be able to charge it, particularly if they had confirmed to the seller's lawyer that they would not do so. Take advise from a professional litigation/public law lawyer on the matter as well though as public law is not in my area of expertise.

    www.notaryexpress.co.uk

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