{"id":13,"date":"2017-11-14T11:34:49","date_gmt":"2017-11-14T11:34:49","guid":{"rendered":"http:\/\/ambercourt3.rmcweb.site\/?page_id=13"},"modified":"2020-08-21T10:01:51","modified_gmt":"2020-08-21T10:01:51","slug":"buying-selling","status":"publish","type":"page","link":"https:\/\/ambercourt3.bml.site\/index.php\/buying-selling\/","title":{"rendered":"Buying & Selling"},"content":{"rendered":"

Buying & Selling<\/h3>\n
\n\t

A brief summary of the exchange of documents required between solicitors acting for the purchaser and vendor of leasehold property (or freehold buildings with the benefit of leasehold land) and the Manager of the property.<\/strong><\/p>\n

The Manager is usually a Residents Management Company (RMC), Right To Manage Company (RTM) or an appointed Managing Agent.<\/em><\/p>\n

The process of selling a property subject with leasehold interest is different to that of buying a totally freehold property as the purchaser is buying the remaining term of the lease which is a contract with rights to leasehold property for the remainder of the lease term and has joint responsibilities with and to the other properties with a leasehold interest. The purchaser will be required to pay Service Charges to cover a share of the costs of the block (or blocks) [often called Common Parts] for major repairs, maintenance and buildings insurance etc. and also for the upkeep of the grounds [often called Common Areas or Estate Charges]. It is therefore important that the purchaser understands the implications of the obligations being entered into.<\/p>\n

1. Pre-Contract Enquiries<\/h3>\n

In order to provide advice to the purchaser, the purchaser\u2019s solicitor will make enquiries of the vendor\u2019s solicitor. These enquiries will include questions concerning the lease and obligations of the owner and RMC\/RTM. A standardised questionnaire has been produced for this purpose by the British Property Federation together with the Law Society, and the Royal Institution of Chartered Surveyors (RICS). The purchaser\u2019s solicitor may use either this questionnaire or a variation of it to raise questions.<\/p>\n

The vendor\u2019s solicitor will forward the questionnaire to the Manager for completion and return to the vendor\u2019s solicitor. Depending on the replies received further questions or clarification may be required. The Manager will also be asked to make available a number of documents including; copy accounts, estimates of future service charges, insurance documents, minutes of meetings and documents relating to the RMC or RTM such as Articles of Association.<\/p>\n

2. Deed of Covenant<\/h3>\n

As the purchaser was not a party to the original lease it is normal to request that the purchaser enter into a Deed of Covenant to agree to abide by the terms of the Lease.<\/p>\n

Freehold properties (houses):<\/strong> The Deed of Covenant<\/a><\/strong> for the freehold properties is a detailed document that mirrors many of the clauses of the lease for the leasehold properties (flats).<\/p>\n

Leasehold properties (flats):<\/strong> The Deed of Covenant<\/strong><\/a> for the leasehold properties is a short document that new leaseholders sign to confirm that they will adhere to the terms of the original lease.<\/p>\n

3. Membership of the Residents Management Company\/RTM Company<\/h3>\n

The purchaser is usually required or expected to become a member of the RMC and\/or RTM. This gives the purchaser the right to have a say in the running of the company. In order to become a member, documents need to be produced dependent on the type of company.<\/p>\n

a) For companies with a share capital. The seller will sell their share in the company to the purchaser. In order to register this transfer the RMC will require a Stock Transfer Form signed by the vendor together with the Share Certificate for the share being surrendered. If the share certificate is missing or has been lost the vendor should complete an\u00a0Indemnity Form<\/a><\/strong> instead of supplying the share certificate. Please note, \u00a0indemnity insurance is not<\/strong> required if the original certificate is missing.<\/p>\n

b) For companies limited by guarantee (most RTM companies are limited by guarantee). The purchaser will need to complete and sign a Membership Application Form. The purchaser also guarantees (hence limited by guarantee) to pay an amount (usually one pound) if the company goes bust.<\/p>\n

4. Additional forms required by the Manager<\/h3>\n

a)\u00a0Notice of Assignment<\/strong> from the purchaser\u2019s solicitor. This will provide the purchaser\u2019s name(s) and address and should include details of any mortgage on the property.<\/p>\n

b)\u00a0Warranty Form<\/a><\/strong>\u00a0agreeing to do (or not do) certain things, for example to ensure the safety of other residents in the block such as having smoke detectors fitted and not to use naked flame heaters in the property.<\/p>\n

5. Payment of Service Charges<\/h3>\n

The Manager will require that all the Service Charges due in advance to the end of the year following the date of completion (sale date) are paid in full (even if the vendor had entered into an arrangement to pay in instalments). The purchaser\u2019s and vendor\u2019s solicitors will apportion the amount paid for the period after the date of completion and account for this as part of the completion statement.<\/p>\n

6. Fees payable to Managing Agent<\/h3>\n

A standard flat fee is charged rather than a variable hourly fee. Please find details below.<\/em><\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>

Pre-Sale <\/h3>\n
\n\t

Fee includes;<\/strong><\/p>\n

Responding to Pre-Contract enquiries by email to vendor's solicitor.
\n\u00a3120.00 + VAT.<\/span><\/strong><\/p>\n

Additional enquiries (within 6 months of the initial enquiry)
\nNo Charge<\/span><\/strong><\/p>\n

Providing pre-populated Stock Transfer Form (if requested) by email
\nNo Charge<\/span><\/strong><\/p>\n

Checklist for solicitors<\/strong><\/p>\n

    \n
  • Pre-Contract Enquiries request issued with fee?<\/li>\n
  • Completed Pre-Contract Enquiries received back?<\/li>\n
  • Service Charges paid to end of current financial year?<\/li>\n
  • Stock Transfer Form completed (if applicable) and sent?<\/li>\n
  • Surrendered Share Certificate sent?<\/li>\n
  • Compliance warranty form signed e.g relinquishing parking space (if applicable)<\/li>\n<\/ul>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>

    Post-Sale <\/h3>\n
    \n\t

    Assignment\/Sale fee is to be paid to the Managing Agent and includes;<\/strong><\/p>\n

      \n
    • Acknowledging Notice of Assignment and Mortgage from purchasers solicitor. If RTM has been exercised notification of assignment to Freeholder\/Landlord.<\/li>\n
    • Updating new leaseholder\u2019s contact details.<\/li>\n
    • Receiving and checking Stock Transfer Form and surrendered Share Certificate (if applicable).<\/li>\n
    • Recording membership in statutory books of RMC\/RTM company<\/li>\n
    • Issuing Membership Certificate and\/or Share Certificate, receiving warranties form.<\/li>\n
    • Issuing a welcome letter requesting confirmation of contact details etc.<\/li>\n<\/ul>\n

      \u00a3130.00 + VAT.<\/span><\/strong><\/p>\n

      Please note: Where the right to manage has been exercised the notice of assignment will be provided to the Landlord by the RTM Company in accordance with the provisions of the Commonhold and Leasehold Reform Act therefore no additional assignment fee is payable to the Freeholder\/Landlord.<\/p>\n

      Additional Fees:<\/strong>
      \nIn rare cases no pre-contract enquiries are made by the purchasers solicitor, this will result in additional work for which a fee is chargeable of
      \n\u00a3120.00 + VAT.<\/span><\/strong><\/p>\n

      Providing copy documents by email or via web-link
      \nNo Charge<\/span><\/strong><\/p>\n

      Providing hard copies of documents \u2013 (per document)
      \n\u00a35.00 + VAT.<\/strong>
      \n<\/span><\/p>\n

      Checklist for purchasers solicitor<\/strong><\/p>\n

        \n
      • Pre-Contract Enquiries received from vendors solicitor?<\/li>\n
      • Check service charges paid to end of current financial year by vendor?<\/li>\n
      • Stock Transfer Form completed in full (if applicable) and sent?<\/li>\n
      • Notice of Assignment\/Sale and Mortgage sent with fee?<\/li>\n
      • Deed of Covenant sent?<\/li>\n
      • Surrendered Share Certificate or Indemnity Form (if applicable) sent?<\/li>\n
      • Completed Membership Application form (if applicable) sent?<\/li>\n
      • Completed Warranty Form sent?<\/li>\n
      • Complete compliance warranty form e.g. for relinquishment of parking space (if applicable) sent?<\/li>\n
      • Provided copy of the lease to Managing Agent in case of any restrictions on the title?<\/li>\n<\/ul>\n
        \n

        Please note that the above summary has been provided in good faith and no warranty to its accuracy is provided and no liability will be accepted for errors or admissions.<\/em><\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

        A brief summary of the exchange of documents required between solicitors acting for the purchaser and vendor of leasehold property (or freehold […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-templates\/page_front-page.php","meta":{"footnotes":""},"class_list":["post-13","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/ambercourt3.bml.site\/index.php\/wp-json\/wp\/v2\/pages\/13","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ambercourt3.bml.site\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/ambercourt3.bml.site\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/ambercourt3.bml.site\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ambercourt3.bml.site\/index.php\/wp-json\/wp\/v2\/comments?post=13"}],"version-history":[{"count":12,"href":"https:\/\/ambercourt3.bml.site\/index.php\/wp-json\/wp\/v2\/pages\/13\/revisions"}],"predecessor-version":[{"id":245,"href":"https:\/\/ambercourt3.bml.site\/index.php\/wp-json\/wp\/v2\/pages\/13\/revisions\/245"}],"wp:attachment":[{"href":"https:\/\/ambercourt3.bml.site\/index.php\/wp-json\/wp\/v2\/media?parent=13"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}