Sale Contract Special Conditions advice!

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    Sale Contract Special Conditions advice!

    Hi folks,

    I intend to purchase my next property at auction. Looking over the legal pack, most of the contract is pretty straightforward and I'm sure the parts I'm unclear on are straightforward to some of the more seasoned veterans on this forum.

    Below therefore are one or two of the special conditions of sale, in plain legalese, that I can't get my head around. If anyone could advise on what these points mean in plain English, or perhaps flag anything unusual or potentially damaging that I must know before bidding, I'd really appreciate that.

    Apologies in advance if these are obviously everyday non-issues contained in most contracts, that will cause no issues, and have been addressed previously.

    6 On completion the Seller will at the Buyers expense assign to the Buyer any cause of action relating to the property whatsoever that has accrued to the Seller as at the date hereof or shall accrue before completion.

    7 Notwithstanding completion of this sale and purchase this Agreement shall remain in full force and effect insofar as any of its provisions remain to be performed or carried into effect.

    8 The Property is sold subject to all or any matters proposals orders agreements resolutions notices or requirements made passed given or served by any competent Authority affecting the Property whether or not registered or capable of registration as a Local Land Charge.

    9 If the Seller remains under a continuing liability in respect of restrictive or other covenants affecting the property then the seller will transfer the property with the title guarantee specified on the front page but the transfer is to contain a provision in the following terms:- "The Transferee for the purpose of affording to the Transferor a full and sufficient indemnity but not further or otherwise hereby covenants that he and the persons deriving title under him will observe and perform the covenants and conditions mentioned and referred to in the registers of title so far as the same are still subsisting and capable of being enforced and will indemnify and keep indemnified the Transferor from all actions claims and demands in respect of any future non-performance thereof"

    Many Thanks for your help and guidance,

    Ritfor

    #2
    It seems like the seller has some problems ( item 8) and intends to pass the problems onto to the buyer .

    You don't have to buy into this problem , do you ?

    Comment


      #3
      I imagine it is standard auction contract and is basically absolving the seller of all the responsibilities that they can legally pass to the buyer.

      I think it is more a case that if you don't want to take on a problem, you shouldn't buy at auction.

      Comment


        #4
        Thanks for your replies. I agree, it looks like all encompassing standard wording. I'm slightly confused however as there is no reference to a specific issue, problem or responsibility. Essentially, if any are known, the seller must make any potential buyer aware. This has not happened, so I would assume there are none to the best of the sellers knowledge, and these points are made to absolve the seller in case of not knowing, as you point out. Would this be a fair or a naive assessment.

        I agree again in that I would not want to inherit any problems, and the best way to ensure I don't is of course to put this in front of my solicitor to get an absolute answer on this. Just trying to avoid the cost if the answer is negative and I do not proceed with the purchase.

        I failed to mention in my initial post - this is a repo, sold by a third party authority by request of the bank.

        Thanks again for your input.

        Comment


          #5
          Then you should check the property title at Land Registry Records for any other charges registered against the title.

          If it is leasehold title , then the amount of arrears owing in service charges and ground rent may not be known in the Land Registry records,

          Comment

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