Help - 3 hours before completion solicitors advise we now need to pay charging orders!!! Is this true??

[squash72]

 

Hi everyone,

 

Firstly - thanks for taking the time to read!

 

My in laws have sold their house and completed today due to marital split!!

 

In the beginning we were advised byour solcitors that they were not legally obliged to pay the charging orders

- so we thought they would come out of the sale of the house with approx 12k each.

 

They have 4 restriction orders on the property, lovely solicitors Restons (not) advised they wanted their money on completion - £7k which was in her name - otherwise they were willing to go to court to stop the sale of the house. We had to agreed!

 

3 hours before completeion this morning our solicitors called to say they need the other 3 companies CL Finance owed 2K, West Brom owed 8K(although added 5K in

interest

on 3k, this was due to their house being repossessed in 1991 and monies outstanding

),

RBS

owed 7K,

to sign RX4 form to release the restriction - so the buyer can register his property!!

 

Please can anyone advise - if this is the case - there will be approx a 2k shortfull

- we always said along - we would pay up the debt after funds in the bank account - but hopefully negotiate with the companies!!

 

Solicitors have advised they will not release the funds to my in laws until the 3 companies have signed the form.

 

We are not impressed with our solicitors at all!!

 

He (father in law) needed a deposit for rent on a property - but now he is homeless - with no options

 

So looking forward to hearing from someone - - anyone!!!

 

Regards

 

Squashy

[Rorschach]

I'm sorry to be the bearer of bad news but the charging orders need to be paid. The original advice you got from your solicitors is ridiculous, of course they need to be paid when a property is sold - that's why creditors get them!

You will have to speak to the companies who hold the charging orders to see if they will accept a lesser amount in settlement, they are not obliged to but if they are practical and you can prove the property is being sold for its true value then they may allow it. But it will not be quick.

ONce you have settled this you should complain to the Solicitors Regulation Authority about the advice you received.

However, having a complaint with your solicitors however valid will not mean the sale can proceed anyway.

[poundhound1808]

You said they are Restrictions - debts in sole name but property jointly owned?

 

Have a read here:

 

http://forums.moneysavingexpert.com/showthread.php?t=1839539