"Deed of covenant" required for sale of leasehold

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    #16
    Originally posted by TechMan View Post

    people move in and the Deed is never returned by solicitors? Buyer's solicitor has no duty of care to RMC, and lets say asking sellers solicitor to chase buyer's solicitor does not bare fruit. Would you complain first to the new leaseholder and then to Law Society? In my case RMC is not freeholder.
    Thank you
    The freeholder should not issue a licence to assign the lease until all documents are received
    The freeholders issues licence to assign.

    A new leaseholder normally wont have a clue what the lease says ( they are normally refused a copy )

    R.T.M.
    You complain to the person responsible for ensuring all deeds are returned signed, and that is the freeholder. The freeholder - or via a RTM, or managing "Agent" would complete these tasks, but ultimsate responsibility lies with the freeholder.

    R.M.C.
    You complain to the person responsible for ensuring all deeds are returned signed, and that is the freeholder, which are the Directors of the company ( Not the managing agent ).
    THEY are to keep tabs on the managing agent ( if one is employed ) to ensure they do the job properly.

    Fortunatly in my Company Secretary roles, they were all R.M.C's and I did all the share transfers, answering all questions and making sure all documents required were received.
    There was one instance where the the solicitors did not advise us when new people were to move in, nor supplied the deeds require.
    I found out by accident they were to move in in 3 days time, ( at that time ) so i rang the solicitors and agents dealing with the sale to advise them seller did not have the signed licence to assign, and none had been asked for. Therefore they cannot move in in 3 days time. ( the flat was empty by the way - fortunately ).
    Oh yes they can, they said, oh no they can't because i will change the locks on the communal entrance door.
    No you can't do that.
    Yes i can, as it seems the lock is faulty and must be replaced immediately, ( be that true or not - but guess which one ) and all leaseholders will have a key in 2 days time, via personal visit to hand them the key , 24 hours before lock gets changed.

    As the Freeholder has not given permission to transfer the lease, your clients cannot enter, and because they have no right to the lease as it stands, they wont be given a Key, therefor your clients will be homeless.
    Do you wish to tell your clients why they are stood outside with a furniture van and can't get in.

    Within one hour, a solicitor or lacky drove to me with a pre-printed licence to assign, which I signed and copied as being the Co. Sec, and they went way muttering.

    Don't mess with me if you don't do your job properly.

    I have been heard to say, my name is ram ( real name given ) be afraid, be very afraid.
    ( Does not always work but works 75% of the time )

    Don't know if i will include the above "be afraid"- but what the hell, you can all have a giggle.





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      #17
      Originally posted by ram View Post
      There was one instance where the the solicitors did not advise us when new people were to move in, nor supplied the deeds require.
      I found out by accident they were to move in in 3 days time, ( at that time ) so i rang the solicitors and agents dealing with the sale to advise them seller did not have the signed licence to assign, and none had been asked for. Therefore they cannot move in in 3 days time. ( the flat was empty by the way - fortunately ).
      Oh yes they can, they said, oh no they can't because i will change the locks on the communal entrance door.
      No you can't do that.
      Yes i can, as it seems the lock is faulty and must be replaced immediately, ( be that true or not - but guess which one ) and all leaseholders will have a key in 2 days time, via personal visit to hand them the key , 24 hours before lock gets changed.

      As the Freeholder has not given permission to transfer the lease, your clients cannot enter, and because they have no right to the lease as it stands, they wont be given a Key, therefor your clients will be homeless.
      Do you wish to tell your clients why they are stood outside with a furniture van and can't get in.

      Within one hour, a solicitor or lacky drove to me with a pre-printed licence to assign, which I signed and copied as being the Co. Sec, and they went way muttering.
      The solicitor was right and you were wrong. He no doubt gave in to avoid trouble - and incidentally because he should not have been completing the purchase of a leasehold property without a licence to assign where one is required - see further below.

      So, what is the law?

      We can start with a very clear statement from the property lawyer's bible, Megarry & Wade:
      "It is a fundamental principle of English law that property must not be rendered inalienable."


      That means that if a lease is assigned without a licence where required the assignment is valid and the assignee becomes the tenant and is entitled to possession. We must though go on immediately to say that where there is such an assignment in breach of covenant the lease is liable to forfeiture - hence why an assignment should never be completed without a licence where required.

      If your argument that the assignment would be invalid had been correct you still could not have barred entrance. If there was no assignment what would your valid reason have been for excluding the person who, according to you, was still the leaseholder?

      If the solicitor had not played ball and you had carried out your threat you could have suffered serious consequences, not only civil but also criminal.

      Comment


        #18
        Originally posted by Lawcruncher View Post

        The solicitor was right and you were wrong. He no doubt gave in to avoid trouble - and incidentally because he should not have been completing the purchase of a leasehold property without a licence to assign where one is required
        Exactly,
        My "words" produced the required a result that was legally required by the lease. 15 love to me.( tennis ) no other actions / letters would have produced that result.

        i left out the part -( as my post was too long to start with ) that the incoming leaseholder would be taken to court for breach of the lease

        If a lock is faulty, and has to be changed immediately, and if I have no contact number for an incoming leaseholer tenant, then that's not my problem.
        Had i been given the details of the incoming tenant, with dates and a lock truly had to be replaced, I would have contacted them and said, when you arrive, ring doorbell number x, prove who you are and I will give you a new key.

        There is no way to prove if a lock was faulty once a new one was fitted.

        I would of course be there to hand over a new Key on the day, i'm not that stupid.
        But people arriving on site I probably have never seen before, demanding a key to enter, with no proof of ownership, will not be given a key.

        But thanks for your explanation which I accept.

        Have had too many people let their flats without Freeholder authorisation, and strangers stating they have lost their keys demanding keys to the common door and flat, and i have no idea who they are.
        Am i supposed to give complete strangers keys to common doors and flats just because the "say" they bought the lease or have just rented the place,. - NO.





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