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Sold House - Can a Charge Still be Made Over House?

Discussion in 'Property Law Forum' started by libby, 8 August 2014.

  1. libby

    libby Member

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    Hi, If I have sold my house and exchange is done, deposit taken, no cooling off period as auctioned can a firm threatening to put a charge over the property do so. The house is no longer legally mine, and can they get any of the proceeds after / before settlement under Property Law?

    Really stuck here and my solicitor keeps asking a barrister and its costing me a fortune so i thought I may ask to save some costs.

    Much appreciated
     
  2. Tim W

    Tim W Lawyer

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    1. We can't answer in respect of your specific case.
      That said, you are entitled, as the client, to have a proper explanation
      of what your solicitor is doing on your behalf. So feel free to ask.
      And to insist on an answer in language you can understand.

    2. Don't confuse a caveat and a charge.
      A search of other posts about caveats may be helpful.

    3. Why would this be happening? Is there a debt somewhere?
     
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  3. Sarah J

    Sarah J Well-Known Member

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    Hi libby,

    If the threatened charge is for a loan, what does it say in the loan agreement about recovery of debt and securities?

    Does the company have an interest in that particular property/asset (as in a mortgage) or do you owe the company a debt unrelated the property?
     
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  4. Sarah J

    Sarah J Well-Known Member

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    A charge over property/land (or an interest in property/land) can only be created in writing and signed by both chargor (debtor) and chargee (creditor). The company cannot create a charge unilaterally over property/land or the proceeds of property/land without already having the authority to do so in some prior loan agreement (ie. already having a fixed or floating charge over the property/land). This is why you should read your loan agreement carefully.

    A charge is not like a mortgage, and in order to realise this charge, the company will need to apply to court. Only in this way, will the company have a realisable interest in your property/land or proceeds thereof.

    Hope this helps.
     
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  5. Tim W

    Tim W Lawyer

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    If they are "threatening to", then am I correct
    in thinking that they don't already have one?

    If what you say is correct, then it sounds like a threat being made
    by somebody who has no idea what they are actually saying
    (for example, it sounds a bit like the kind of rubbish that
    a debt collecting agency would say to intimidate an unsophisticated debtor).
     
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