Strange clause in contract about judgement

Could someone here throw some light on this... we have a booking deposit paid to auctioneer for a 2nd hand house which is owned by a builder (he built large estate) this house is in that estate. Company is xxxxxxx homes and the house is in his wife's name.

It says in contact that there are 3 judgements against this building company and that if on the closing date there are any judgements put on the mortgage of this house that they can refuse to sell.

Our solicitor expalined it as above.

I know that on the closing day searches are always done to see if there are any burdens/judgents on a house, so I am wondering if in this case things are more serious since it is highlighted in the contract.

By closing date the new owners will be moving into our existing house and we will not know for sure if we can get new house or not.

Any clarification on this matter?

Who are you buying the house from, the builder's wife? And he built it and is in trouble with his bank. Sounds iffy to me. Builder transferring to wife to avoid bank. And real possibility of bank going after builder's company debt by putting a judgement on a property he doesn't own.

Did your solicitor think this is a good idea?

Solicitor didn't say much about it at all, so now we are worried.

If your current solicitor can't / won't explain to your satisfaction, get another one. Personally, if I had paid a deposit to the EA I'd ask for it back and walk away. It's not like houses are in short supply.