Contracts exchanged; who insures, and can P seek p/pmsn?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Contracts exchanged; who insures, and can P seek p/pmsn?

    We are the purchasers and I've read that we will need to insure the house we are purchasing inbetween exchange of contracts & completion. This will be from April/May to October. However the vendors will still be living there albeit not by choice (our funds cannot be released until then!). Is this normal please?

    #2
    planning permission prior to owning house?

    Are you able to apply for planning permission prior to completing on a house, that is after exchange of contracts? I've read somewhere that the purchaser 'owns' the house once contracts are exchanged, is this true? If so can you apply for planning permission?

    Comment


      #3
      apply for planning permission prior to 'owning' house?

      I've read somewhere that the purchaser 'owns' the house once contracts are exchanged, is this true? If so can you apply for planning permission?
      thanks in advance

      Comment


        #4
        Originally posted by dkell View Post
        Are you able to apply for planning permission prior to completing on a house, that is after exchange of contracts? I've read somewhere that the purchaser 'owns' the house once contracts are exchanged, is this true? If so can you apply for planning permission?
        No, I do not think that is correct, otherwise why does one only get the keys on completion and not at exchange of contracts?

        I believe the contract is just that - an agreement to sell/purchase: there are financial penalties written into the contract in case one side reneges on the contract for whatever reason, but you do not actually own the property until money has changed hands and the title deeds are transferred into your name.

        It would seem to be tempting fate to apply for pp before you own the place, even if you are allowed to, which I doubt. I think a prerequisite of applying is ownership, for obvious reasons!
        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

        Comment


          #5
          Yes, it's normal, though I don't understand why. I'm sure someone will explain.

          Six months! That's a very long time between exchange and completion. You have very agreeable vendors.

          Comment


            #6
            Yes you can apply for planning permission before you buy the property we do this quite often there is a specific form you need to fill in called a certifcate B which you get from your local council, this notifies the current owner you are applying. You can not obviously do anything with the permission until you own the property.

            Comment


              #7
              You do not need to own a property to apply for planning permission at all.

              If you do not own it you do have to give notice to the owner.

              Comment


                #8
                Originally posted by dkell View Post
                I've read somewhere that the purchaser 'owns' the house once contracts are exchanged, is this true?
                No. During the period from exchange until completion:
                a. V still owns; but
                b. V effectively holds on trust for P.

                Most transactions incorporate the Standard Conditions of Sale (4th. edition is current). If so, these demand that V hand-over to P on completion the property in the same state then as it was at exchange.
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #9
                  For additional info, see the answers in the other forum where you posted this!
                  'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                  Comment


                    #10
                    Originally posted by RJ01 View Post
                    Yes you can apply for planning permission before you buy the property we do this quite often there is a specific form you need to fill in called a certifcate B which you get from your local council, this notifies the current owner you are applying. You can not obviously do anything with the permission until you own the property.
                    This is correct; post #2 is not.
                    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                    4. *- Contact info: click on my name (blue-highlight link).

                    Comment


                      #11
                      Originally posted by jeffrey View Post
                      This is correct; post #2 is not.
                      I think the first part of #2, concerning ownership, is correct; I stand corrected on the last part concerning planning permission - although it is perhaps worth pointing out that the applicant stands to lose the pp fee if the sale falls though.
                      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                      Comment


                        #12
                        On exchange the buyer will always insure the property to protect it in their name and also to satisfy the mortgage company when you complete it is to ensure that the property is handed over in the same state as on exchange. the advice given about the planning application is good.

                        Comment


                          #13
                          Originally posted by KateC View Post
                          On exchange the buyer will always insure the property to protect it in their name and also to satisfy the mortgage company when you complete it is to ensure that the property is handed over in the same state as on exchange.
                          What 'always' is that? Why should P insure if V agrees to maintain own insurance until completion?
                          The mortgagee has no insurable interest until after completion, of course.
                          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                          4. *- Contact info: click on my name (blue-highlight link).

                          Comment

                          Latest Activity

                          Collapse

                          Working...
                          X