Will lien on house remain after purchase?

Jim1000

hello Folks,
just a general point for anyone that knows if you have the time.
A house I am looking is up for auction by a bank. The auction house has freely made the folio available. There appears to be 2 debts registered against the property from 2 different banks. The sale price will not cover these debts. So, my question is if one were to purchase this house at less than the debts in question, is he then liable for the rest of the debt?

Many thanks.

Marcusm

Jim1000 wrote: »

hello Folks,
just a general point for anyone that knows if you have the time.
A house I am looking is up for auction by a bank. The auction house has freely made the folio available. There appears to be 2 debts registered against the property from 2 different banks. The sale price will not cover these debts. So, my question is if one were to purchase this house at less than the debts in question, is he then liable for the rest of the debt?

Many thanks.

Only if his solicitor is incompetent.

Jim1000

thanks for the reply Marc,

so you saying its not definitive? That it could go one way or the other and there is no set law or procedure?

johneym

I too would like to know about this please if anyone knows?

linola_c

Are the debtors listed on the folio certs, the bank(s)/entity selling the property?

If the incumbrances on the folio are listed as liens, then that means that the bank has retained an equitable deposit of title deeds as security for the loan originally given. It is possible that the property has also been used as security for another loan with another bank and thus, listed on the folio cert. In any case, both entities would need to be on notice of any sale of the property.

Seek further info from the auctioneer in the first instance. I wouldn't be touching it unless the burdens have been removed/discharged before purchasing. I believe that the burdens would stay in situ as they are attached to the land. It would not be very wise to purchase at all!

Pat Mustard

Jim1000 wrote: »

A house I am looking is up for auction by a bank. The auction house has freely made the folio available. There appears to be 2 debts registered against the property from 2 different banks. The sale price will not cover these debts. So, my question is if one were to purchase this house at less than the debts in question, is he then liable for the rest of the debt?

Mod:

This query is not appropriate to be raised in this forum.

You ask about buying a house, you know that charges are registered on title and you are aware that the sale price is insufficient to discharge those charges.

You raise a very specific query as to whether you will receive clear title, unencumbered by these burdens, should you proceed to purchase the house. It is impossible to answer your question accurately without even looking at the title/documents which pertain to this property.

You have asked for legal advice on a matter in which is not possible to advise accurately and which is likely to have grave financial consequences for an incorrect answer. The forum charter does not allow posters to look for legal advice here. Please read the forum charter before posting again.

You should talk to a solicitor if you are buying a house or any real property.

Thread closed.