Private Treaty House Purchase - Receiver - Clauses

Villaines

House advertised for private treaty sale.

Sale Agreed. Oh, we're issuing contract, by the way, it's a receiver sale.

Contract sent with all types of clauses, including no recourse to seller, entire agreement,etc.

Solicitor advises against signing contract.

Next steps? Walk away, get second legal opinion, etc. Thoughts?

Agreed Price is full MV imo.

Sofa King Great

That all sounds fairly standard in a receiver sale.

Is it a new house?
There are a lot of solicitors not used to Receiver contracts so they can be slightly disconcerting, however there are others who have no issue with them at all and are well used to them.

If you want the house get a second opinion.

Milk & Honey

If you are signing a contract like that there should be a hefty discount and you should get title insurance.

dats_right

Sofa Great King you seem to assume that it is the solicitor's inexperience with dealing with receiver sales that is the problem here without anything to really support that view. I would suggest that it is more likely to be the opposite, and there are good reasons why the solicitor is advising the OP to walk away.

An oft quoted maxim used by conveyancing solicitors is: "The day you buy is the day you sell". What is meant by this is that any title problems that exist now when you purchase will come back to bite you when you attempt to sell the property.

Without more meaningful information about the precise nature of the issues your solicitor has with the title and/or contract then it is difficult to advise you. I would not see much point in getting a second opinion as the likelihood is that they will tell you exactly ther same thing and you will have paid on the double.

Just because the advice is not what you want to hear does not make it bad advice. The whole purpose of engaging a solicitor is to obtain expert independent advice, if you do not want to listen to this advice, you are free provided you are a cash purchaser to ignore your solicitor and instruct him/her to proceed with the transaction.

Villaines

dats_right wrote: »

Sofa Great King you seem to assume that it is the solicitor's inexperience with dealing with receiver sales that is the problem here without anything to really support that view. I would suggest that it is more likely to be the opposite, and there are good reasons why the solicitor is advising the OP to walk away.

An oft quoted maxim used by conveyancing solicitors is: "The day you buy is the day you sell". What is meant by this is that any title problems that exist now when you purchase will come back to bite you when you attempt to sell the property.

Without more meaningful information about the precise nature of the issues your solicitor has with the title and/or contract then it is difficult to advise you. I would not see much point in getting a second opinion as the likelihood is that they will tell you exactly ther same thing and you will have paid on the double.

Just because the advice is not what you want to hear does not make it bad advice. The whole purpose of engaging a solicitor is to obtain expert independent advice, if you do not want to listen to this advice, you are free provided you are a cash purchaser to ignore your solicitor and instruct him/her to proceed with the transaction.

Thanks for your response.

The main issue is that the receiver is inserting a variety of clauses designed to remove the warranties that would normally apply in a private treaty sale, but also that it is not being sold by the 'mortgagee in possession'.

For example, I'm being told I would have no recourse to the receiver/current mortgagee if another charge was registered on the property between the date I sign the contracts and the date my title is registered.

I do think the advice is appropriate, some of the clauses should be removed.

I don't fully understand why a bank that has taken over a second hand property of a bankrupt borrower should want to insert these clauses unless they believe there is significant risk attaching to the sale.

The problem is there aren't any similar houses for sale and we've been waiting on this for months. Don't want to leave it but this is my family home and the price does not seem to be commensurate with this risk.

I am not a cash buyer. Ultimately, it may be decided by my own lender, who may be unlikely to lend on these conditions.

Sofa King Great

dats_right wrote: »

Sofa Great King you seem to assume that it is the solicitor's inexperience with dealing with receiver sales that is the problem here without anything to really support that view. I would suggest that it is more likely to be the opposite, and there are good reasons why the solicitor is advising the OP to walk away.

An oft quoted maxim used by conveyancing solicitors is: "The day you buy is the day you sell". What is meant by this is that any title problems that exist now when you purchase will come back to bite you when you attempt to sell the property.

Without more meaningful information about the precise nature of the issues your solicitor has with the title and/or contract then it is difficult to advise you. I would not see much point in getting a second opinion as the likelihood is that they will tell you exactly ther same thing and you will have paid on the double.

Just because the advice is not what you want to hear does not make it bad advice. The whole purpose of engaging a solicitor is to obtain expert independent advice, if you do not want to listen to this advice, you are free provided you are a cash purchaser to ignore your solicitor and instruct him/her to proceed with the transaction.

I am speaking from vast experience with these types of sales.

On many occassions it comes down to solicitor's inexperience