Land Registration - Charge on property

[Omegamike]

I had a 'charge' put on my property. A few weeks ago I sold my property and expected the charge to be actioned!. As it happens the solicitor acting on the buyers behalf failed to gain a certificate (search) which would have given him details of the charge, subsequently the property sold with no problem!! Now the solicitor representing the person who put the charge on my property is kicking up one hell of a fuss (as you would expect!) and demanding payment. Now..... who is liable for payment? Me? or the solicitor that failed to action the 'charge' because of his negligence? Hmmmmm.... hope someone has an answer ;o) thanks.

[Eve]

That's a potential negligence issue if they didn't do a search and if the buyer got a mortgage then I'm sure they won't be very impressed with them either as it stops their charge being registered before the new one is removed.

Your solicitor needs to get on top of this. I'd check the contract so check the description of encumbrances (some relate them to a specific edition of the title supplied with the date and time on which the charge obviously didn't show up).

As you knew about the charge, did you tell your solicitor? If you did they should have revealed it in replies to requisitions as there is a specific question relating to anythng changing from previous correspondence. Why didn't your solicitor pay it off?

An undertaking would have been given in the replies to requisitions which confirms the charges to be discharged. I'm guessing it didn't include that charge?

Essentially the debt is still yours as it was in the first place. The issue is that the buyer probably cannot register the property until it's removed and they are either paid off or agree to move the charge to another property if you have one and it's feasible.

What kind of charge was it? A mortgage or second mortgage or personal loan of charging order?

[Omegamike]

Thanks for that Jenna. More or less what I was expecting. The charge was an agreement bashed out by my sols to get a lodger out of my property allowing me to sell up. My present solicitor (who was involved with the 'charge')has jumped ship! due to conflict of interests between him and the buyers solicitors who are the same company? Hmmmm... I have, however, another solicitor (property lawyer who dealt with the sale of my property) he also jumped ship saying they did everything above board and within the law - which leaves me with no solicitor! The buyers sols who messed things up in the first place by not instigating their searches correctly have agreed to pay the money (charge) but are now threatening to serve me with a Statutory Demand followed by a Bankruptcy Petition to get their money back. It's all such a mess, I instructed BOTH my solicitors to liaise with each other with regards to the charge and was told in no uncertain terms that it was all out of my hands and things would be sorted between solicitors and land registry without any input from me. Incidentally, the money from the sale of my property is now here there and everywhere, paid off debts, loans etc. IF I am still liable could I offer to pay �x a month to pay off the charge? Maybe I should let them bankrupt me as I have very little capital in the first place?

As a footnote I should also point out that I took independant legal advice a couple of weeks ago and he says that the charge that was placed on the property was done so on poor legal advice and that I wasn't liable to pay ANYTHING and that I should have gone through the courts to evict the tennant instead of paying them off. Remember that the sols that were representing the buyers cliants were also the same firm that advised me on the charge to my property! - would I have a case for 'Conflict of Interests' if I was to take this to the Legal Society or another legal body?

Thanks one again ;o)

[Eve]

Not good at all!!!

I see your solicitors were supposed to liaise about the charge. This info is important, have you anything in writing?

I'd give the SRA (our regulatory body) a ring and talk it through with them...

http://www.legalcomplaints.org.uk/home.page

They often ask for an approach to be made to the solicitors by you first, if so then put it in writing and send it FAO the Senior Partner.

In my opinion, this is something the SRA need to know about if the firm is practising in this way. Make sure you tell them about your independant legal advise about being poorly informed esp if there was a potential conflict of interest!

I'd definitely check if you need to pay it. I'd say it should be paid by the solicitors to get rid of the charge and, if you are liable to pay it then agree a reasonable (and I'd hope interest and fee free) repayment structure with them.

Info on the firm should be found here...

http://www.lawsociety.org.uk/choosingandusing/ findasolicitor.law

I hope this helps and you get things sorted :)

[Omegamike]

Jenna - your a treasure! ;o) Thanks for the info and web links, much appreciated. I will post on here with the end result which I expect will take a number of weeks? But at least I now have a good idea about the direction I'm heading..... Thanks once again.