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Estate not in charge of council & no management company

  • 12-06-2021 5:15pm
    Registered Users Posts: 29 nd272


    Mother is gone sale agreed on house and contracts had special clause in same to state that estate is not in charge of council nor was it transferred to the management company. Residents are looking after common areas c. last 15 years.

    Mother solicitor wants her to sign indemnity as they are advising her against purchase, stating she may never be able to sell it, or if pipe bursts in estate its on the residents to fix it. One of the houses sold 18 months ago and house was mortgaged so surely bank was happy to go ahead. we received note from vendors re the estate below explaining what happened re the estate:

    The builder went bust before the estate was finished.
    The council took it over under the bond and supervised a contractor to finish the estate.
    The water and sewerage are plugged into the mains.
    There was meant to be a management company (run by the builder I think) but it never materialised.
    The estate has been there for @ 16 years and the communal grounds have always been cared for by the residents.
    There was an official agreement on paper among the residents that this would continue to be the case about 4 years ago.
    As a result there is no management fee.

    The council looked into taking estate into charge in Feb 2020 but noted road leading into development is a right of way and not a public road so was not possible to take into charge at that time.

    has anyone ever seen a situation like this where estate not in charge of council and management company was dormant or was never established as buidler went whack?