20+ yr old Apt block, common area not transferred to Mgt Comp.

R

rmelly

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Hi, am in process of buying a 20 year old apartment, I have signed contract and paid deposit to solicitor, but they have yet to be returned to the vendors solicitor.

It was mentioned that the common area transfer hadn't taken place when I signed, the solicitor didn't appear too conerned, but today the solicitor appears more concerned, and is now going to try to find out from the management company solictor what the problem is.

Should I proceed without the transfer being complete?
 
I wouldn't unless the vendor will give you an indemnity. The common areas form part of the development which should fall into the Management Company ownership, for which normally all apartment owners have a share. If something happens to the developer God knows what happens next.This is a case of neglect from the solicitors acting for the developer originally -- another mess. Good Luck with this one
 
By the way what does your solicitor say ?? You could be waiting for ages to sort this out
 
The vendors solicitor doesn't appear to be co-operating and are fobbing my solicitor off - another letter/fax sent to them today. The estate agent is saying there have been no problems in 20+ years etc...

A relative got a few different opinions on this from conveyancing specialists for me, he advised me not to proceed, so I have a decision to make in next few days.
 
It depends how much you really want this property. If you really want it send back the contract and exchange, but check with you solicitor as to what the title deeds say. Then you have the right to seek an EGM from the Managment Company and to advise the other property owners of the block.
 
mercman said:
I wouldn't unless the vendor will give you an indemnity. The common areas form part of the development which should fall into the Management Company ownership, for which normally all apartment owners have a share. If something happens to the developer God knows what happens next.This is a case of neglect from the solicitors acting for the developer originally -- another mess. Good Luck with this one
Click to expand...


Mercman, you have no idea whether this is the fault of a solicitor or not!! It may be ,it may not be but neither you or I have any idea why this was not done.(Having read a number of posts by you methinks you have a very dim view of us solicitors:( ).

OP,
More importantly I would advise the OP not to return contracts until this has been sorted.This may be a very serious problem and the OP may have to walk away. Over almost 14 years of conveyancing I have seen people buy and sell apartments where the Management Company had not yet been registered despite a serious delay. 20 years is excessive however and these days(and I mean even before the current slump) you will have great difficulties selling an apartment if management company not registered as owner of common areas.

Your solicitor must find out reason for delay, also if original developer still registered company and when will the transfer to management company take place. Only with this info can you make a decision. If I were buying for myself I would not exchange contracts and that should always be the minimum standard to be applied when advising a client.i.e if I would not put my money on the line I should not advise a client to in the same circumstances.
 
Rmelly - Did anything further happen regarding this matter. Did you exchange contracts ??
 
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