Inability to get freeholder info jeopardising property sale

[Finwoodhill]

I am currently selling a flat. It's one of a small block of 10. I bought the flat 6 months ago - it was repossessed, had been empty for some time and there was therefore little info available. Residents pay a management fee of £25 a month which I have paid since the time of purchase. My buyer's solicitor has presented us with a long list of questions they need from the freeholder (eg: copy of the building insurance, fire safety certificate etc, etc). This list was sent to a resident of the block who is a director of the Management Company three weeks ago, and a further letter sent explaining the urgency but we have had no response. I have no telephone number for this man and I cannot get to the front door of his flat as there is a code pad on the outer door. In desperation I rang the accountancy firm that deal with the management company to see if they had contact details for him - they were unwilling to give me his phone number, but said they would ring to chase him. I rang again on Friday morning and they said they had given him my number and he would be in touch. They promised to call him again and get him to call me (it's now Sunday night and he hasn't). We are due to exchange/complete on the sale on Thursday 23rd December but will not be able to do so without this info. Would I have grounds to sue this guy for withholding the info if my sale fell through as a result?

[bednobs]

no.

[bednobs]

sorry that finished before i did!
3 weeks in my opinion is not unreasonable (for instance, they might have been on holiday). Then they have to gather the info. Do you have a mortgage? If so i can't understand why your mortgage company didn't require this information when you bought it.
There is usually more than 1 director of a management company, so are there for this one, or does this 1 bloke decide everything that happens?

[Finwoodhill]

I bought it cash so no mortgage. The block is not particularly well maintained, but I thought this may have been in part due to the previous owner not having paid his maintenance for 3 yrs, so I got the repossession company to settle the backdated arrears in the hope this would enable work to be done. I did write to the chap when I bought asking what repairs/works were planned but got no reply apart from a strange hand-written pencil note giving bank a/c details for the maintenance payment. I have tried to track down the other director listed on the accounts but the accountants will not give me the details - I have a sneeking suspicion they may no longer be involved so the remaining guy should not be the sole director surely? The thing that puzzles me is that 2 other flats in the block have been sold in the past 6 months so surely they will have requested the same info? (and you would therefore expect it to be readily available)

[bednobs]

Wont the details of the directors be available via companies house? It sounds like an incredibly strange set up to me. Perhaps the other 2 buyers were as lax as you at wanting details before they bought? In all honesty, even for a small block £25 a month is quite a small amount. How do you know this bloke isn't just pocketing all the money?

[bednobs]

ps, when i was director of the management company of the block of flats we lived in, me and the other directors employed a company to do all the legwork for us - for example to organise window cleaners, grass cutters, tree cutters and to take all the money and chase people who were in arrears and submit our accounts and organise residents meetings etc. Is it possible you have a set up like this?

[Finwoodhill]

There are only ten flats in a very small block so hardly worthy of outside help. The accounts look to be in order and have been filed. Yes perhaps I was niave not to ask for this info when I bought but this is the sort of thing my solicitor should have pointed out (first freehold property I've bought) - after all she knows I would develop it and sell it on!

[buildersmate]

It is absolutely the sort of issue your solicitor should have established on your behalf when you bought, and you may wish to pursue this matter with her.
Nevertheless this isn't going to help you right now in trying to clear impediments to exchanging contracts with week. I'm actually surprised that your solicitor advising you now on the SALE didn't appreciate that there would be a need to provide this info - it is pretty standard stuff a buyer would want checked out.
There is no 'standard period' by which information has to be provided so there is no guarantee of success in threatening to sue.

[venator]

You can get details of the Management company - directors, company secretary , accounts etc. from the Companies House website -

http://www.companieshouse.gov.uk//index.shtml

Use the Webcheck service - it's free, and will tell you whether the company's paperwork is up to date, and what details are available. You can download whatever you want quite cheaply.

You might find other directors, or if the paperwork isn't up to date, you could put pressure on the accountants or the company secretary by saying you will complain to Companies House.

I don't know if this will be much help, but at least you'll be doing something!

[themas]

As BM says, your solicitor on purchase was responsible for getting this info. I'm amazed she didn't do so or advise you of the possible consequences (which you are now belatedly finding out!) of not doing so. As has already been said, this is standard practice when buying leasehold flats. Unless you are very fortunate, I'd say there is no way you'll meet a 23/12 deadline to exchange. At least your buyer's solicitor is on the ball, even if your's isn't!

Do you really mean you bought without even knowing whether the block has any buildings insurance? In my book, that alone would be a case for you to take against your solicitor for negligence - unless she advised you about it & you ignored her advice.