Estate Agent Archives

Jan 27

Why are there Prohibition Orders against the property I’m purchasing?

I am purchasing a property but my solicitors have advised me that the Local Authority Search has revealed there are Prohibition Orders registered against the property. What does this mean?

Occasionally, searches will reveal Enforcement Notices registered against properties. This will relate to Planning Conditions having been breached or the Local Authority declaring the property unfit for habitation.

A Prohibition Order is a little more serious. This prevents the property from being used for a particular purpose until conditions set down by the Council are satisfied – for example the inability to use a property or part of a property, for residential purposes because certain alterations, usually unauthorised, are a risk to the health of any occupier.

You need to consult with the Local Authority to establish what is required to satisfy these Orders as the cost of satisfying these requirements need to be included in your anticipated budget.

One other important point to note is that such entries revealed by the local authority search may have been satisfied but the entries remain on the Local Land Charges Register. If an entry is therefore revealed by the search your lawyer will need to enquire of the local authority as to whether the Notice remains valid or whether it has been satisfied.

* Emyr Pierce is Managing Director of Emyr Pierce Solicitors in Rhiwbina, Cardiff, Western Mail Conveyancer of the Year, specialising in Domestic and Commercial Property. Contact www.emyrpierce.co.uk or email law@emyrpierce.co.uk

Jan 27

What happens in a jointly owned home if one person sells their half of the property?

Three years ago my mother (who is now 79) put my name on the deeds to her bungalow so that we owned it in joint names. If mum needed to go into residential care would she have to sell it to fund her care and what happens to my half?

There is excellent guidance available on the Age Concern website with regard to whether or not such a gift into joint names three years prior to entering into residential care would amount to a dissipation of assets.

In other words would it be a transaction that could be questioned by the Local Authority whereby it could be argued that your mother deliberately transferred the property into your joint names in an attempt to avoid having to pay Care costs. If it was deemed that this was the case, then the gift three years previously would be capable of being overturned and the property could be sold with a view to funding your mother’s Care.

If you lived there with her prior to, and since, the date of transfer into your joint names then obviously there would be an argument for saying that your mother was doing so to protect your position as you had lived there for some time and presumably contributed towards its maintenance, repair and outgoings.

I would strongly advise anyone considering these matters to consult carefully the websites of Age Concern and other organisations where invaluable and useful information can be obtained on this complex subject or take formal advice from a lawyer specialising in this field.

Oct 1

How can I evict a tenant from a property I own?

How can I evict a tenant from a property I own in Brecon? He is not paying his rent and not allowing the Estate Agent to show people around the property.

Presuming your tenant is occupying the property under the terms of an Assured Shorthold Tenancy for a fixed period of at least six months and not more than 12 months, then Possession Proceedings can be started against him if he is two months in arrears with his rent and is clearly in breach of other covenants such as refusing access to your Selling Agent to market the property provided of course your tenancy agreement covers this point.

The process can take some weeks but you must follow the procedure strictly in order to avoid falling foul of the Anti Eviction Laws.

A Notice of Intending to Issue Possession Proceedings is initially served on the tenant and an application then submitted to the Court. The procedure can effectively give the tenant a further six weeks before he has to vacate, which then leaves you with the ultimate problem of having to pursue the tenant for outstanding rent.

Consult a solicitor immediately to ensure the procedure is started without further delay.

Aug 28

Can I stop my home being repossessed by selling it to my son?

I am currently experiencing serious financial problems. My son has lived with me for the last 22 years. Could I sell the property to him to prevent the property being repossessed? If so does it have to be for the full market value?

Any transfer to your son either for no consideration (a gift) or at an undervalue (less than market value) could be deemed to be a deliberate attempt on your part to defraud your creditors under the provisions of the Insolvency Acts, and could be subsequently overturned by your Trustee in Bankruptcy should you be declared bankrupt within a period of five years from the date of the gift.

Provided there is sufficient equity in your property then you can of course sell to anyone you wish (including your son) for the full market value provided of course there is sufficient to repay the amount owing on the mortgage, inclusive of all arrears and costs. If the sale value is less than the amount owing on the mortgage (negative equity) you can only proceed with any such sale with the express consent of the Lender.

You would not be able to transfer the property to your son, or anyone else, without first repaying the mortgage as the Lender has a Restriction registered against your property title preventing any such dealings without them first being repaid their loan. In the event of a negative equity situation you would need to negotiate a settlement or they will repossess and sell at auction. It may of course be in the Lender’s interest to agree to a sale even though they will not receive the full repayment as they will save the costs of repossession and subsequent remarketing and will receive a larger sum from the net proceeds.

* Emyr Pierce is Managing Partner of Emyr Pierce Solicitors in Rhiwbina, Cardiff, Western Mail Conveyancer of the Year, specialising in Domestic and Commercial Property. Contact www.emyrpierce.co.uk or email law@emyrpierce.co.uk

Nov 16

Will estate agent charge for market withdrawal?

I have had my house on the market with an Estate Agent for the last five months and received one offer, which was acceptable until the buyer’s survey picked up a number of issues resulting in a much lower offer being made. I have now decided to withdraw the house from the market. Will I be expected to pay any fee to the agent bearing in mind no sale will take place?

Sellers will often elect to stay put for a number of reasons, and an estate agent is only entitled to his commission in the event of his finding a Buyer who is able and willing to proceed to complete the purchase of your property.

If a sale has been negotiated through the selling agent then this will be on terms and at a price acceptable to both parties. If the Buyer subsequently varies that offer as a result of further enquiries, survey or inspection then the Seller is of course not obliged to proceed on these renegotiated terms. If the renegotiated terms are unacceptable you are of course entitled to withdraw in the same way as the buyer will withdraw as he is no longer willing to proceed at the original price.

In such circumstances the agent is not entitled to his sale commission as the sale which he negotiated did not proceed as the Buyer was not willing or able to proceed as a result of his survey but will be able to recover advertising costs and any other costs covered by the agent’s own contract.

Oct 22

No viewings Estate Agent charged £530

After almost 16 months of having my house on the market, with not a single viewing, I have decided to change Estate Agents, only to be presented with a bill from the previous Agents for £530 of “expenses”. Are they legally entitled to do this?

This will entirely depend upon the terms of the contract entered into with your original Estate Agent. The majority of agents include in their terms and conditions a specific agreement on the part of the seller to reimburse the agent for incidental expenses, particular advertising expenses, whether or not the property is sold through their agency.

When withdrawing instructions from a selling agent you may well be faced with such expenses, or disbursements, incurred by them during their marketing of your property.

It is increasingly important for you to read carefully the terms and conditions of your appointed agent as these contracts will include such crucial terms as the minimum sole agency selling rights, payments to which the agent is entitled – regardless of whether he is successful in securing a purchaser for the property, and also his entitlement to commission where the ultimate purchaser is initially introduced by the selling agent.

Oct 20

Should I move Estate Agent to secure buy?

I have seen a property for sale in the window of a local Estate Agent. I need to sell my own house first but the seller’s agent is pressurising me to sell my house through him rather than my own appointed agent. I do not wish to lose the house I wish to purchase but have been happy with the service received from my existing agent. What should I do?

This is, of course, somewhat unprofessional but it is a fact of life that if an alternative purchaser is also selling their house through the same agent as the seller then that agent will stand to receive two commissions should that particular chain proceed.

I have to say that estate agents are far more professional these days and are acutely aware of professional standards and would not deliberately try and “steal” another agent’s client.

However, there may be a genuine conflict whereby if two parties are interested in the same property – and one of the prospective buyers is also selling their house with the same agent – then the agent may have a greater professional responsibility to that existing client compared with someone like yourself whose property is currently marketed by another agent.

The final word should be that of the seller who, on the advice of their agent, should choose the buyer who appears in the best position to proceed regardless of through which agent that prospective buyer is selling their property.

If you feel that the agent is not communicating your offer or how well positioned you are to proceed to the seller then you could always contact the seller direct to ensure they are aware.