Understanding Repossession Conveyancing
Navigating around repossession, whether it’s buying or selling, can be a tricky matter. There are a few important distinctions that separate repossessed from ordinary property.
What is repossession?
Simply put, it is the legal process where the lender is entitled to take ownership. Property repossession could occur to anyone who has a mortgage or other type of loan secured against their property and is unable to meet such repayments.
This allows them to sell the house so that they can recover the money that they are owed.
What makes buying a repossessed property different?
Rather than buying a property from a normal seller, repossessed property has transferred ownership to the lender, often being a bank or building society. The lenders, looking to recoup outstanding debt, provide a chance for a quick sale for sharp buyers.
So, are there any issues?
Yes. At this point, it may seem that a repossessed bargain is an easy opportunity for a bargain. However, beware – the possession going into the hands of the lender also has its risks.
A strange seller
One of the main problems stems from the seller now being the lender. The lender, who has never lived in or may have not even been to the property, will naturally be lacking in important knowledge. For example, basic information on alterations, titles and other important documents or structural faults won’t be readily available with a plain old phone call.
The lender, unlike a regular vendor, is also trying to rid themselves of the property as quickly, and consequently as cheaply as possible. The lender or bank has an obligation to seek the best price possible, allowing them to change their mind at the last minute. This of course leads to stress for every party involved. Contracts may be unreasonable and unamendable, with the deadline being typically 28 days if buying with a mortgage, and 14 days with cash.
Issues with the property itself
Physically, it is neither uncommon nor unexpected for the repossessed property to be in poor condition. There may be defective titles which will be especially troubling for the unaware buyer – it can therefore be important to check with neighbours about any issues such as boundary disputes.
Another key difference lies in arrears. For example, the original owner of a flat may have accumulated debt in their service charge, and as a result, the buyer will have to settle them.
How can I avoid any problems?
Some of the difficulties will be impossible to dodge, as they are inherently embedded into repossession conveyancing, however, that is not to say that their annoyance cannot be greatly pacified. Utilising the experienced conveyancing solicitors at Attwells’ to cover any legal challenges, combined with a thorough survey, as well as a personal inspection from the buyer themself are all vital components to traverse the complexity of repossessed property.
Call us today on 01473 229200 or email us at info@attwells.com for further information and a fee quote.
