Order for Sale

[Colin973]

Could anyone please give me some advice on the process for an Order for Sale on a property.

 

 

I have today just had the hearing regarding the interim charging order I had against a debtors property

and thankfully the judge has made the order 'final'.

 

 

As the debtor never attended court or replied to the order I have no option other then to pursue the Order for Sale

and would like to know how I go about that,

 

 

what's involved and what action/steps I need to now take.

 

 

thanks in advance for any help or advice given

[fkofilee]

How much is the order for? Whats it for?

[citizenB]

https://www.justice.gov.uk/courts/procedure-rules/civil/rules/part73/pd_part73

 

https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/charging-orders/#what_happens_if_there%27s_an_order_for_sale

 

If you have a read of the CAB link above, it gives you some idea of what you need to do. If I understand this correctly, you have a final charging order. You now have to apply for the Order of Sale - which then gives the judgment debtor 28 days to either pay or leave the property. If they don't do either, then you will need to apply for a Warrant of possession.

 

Scroll down the page until you reach the heading Final Charging order, in that text you will see

 

If a final charging order is made, your creditor can either wait until you sell your property or apply to the court for an order for sale. They must apply for an order for sale if they want you to sell your property straight away.

 

 

You need to click on "order for sale" and it then provides the following ..

 

What if the court makes an order for sale

 

If the order for sale is made and not suspended, you will normally be given 28 days to pay the debt or leave the property. If you don't pay the debt or leave the property within 28 days, your creditor can apply for an order to force you to leave the property. This is called a warrant of possession.

 

 

[Ganymede]

Could anyone please give me some advice on the process for an Order for Sale on a property.

 

 

I have today just had the hearing regarding the interim charging order I had against a debtors property

and thankfully the judge has made the order 'final'.

 

 

As the debtor never attended court or replied to the order I have no option other then to pursue the Order for Sale

and would like to know how I go about that,

 

 

what's involved and what action/steps I need to now take.

 

 

thanks in advance for any help or advice given

 

Hi,

 

Is the debtors house the family home? Are there children living there? If there are you're very unlikely to get the Order for Sale.

 

Applying for an Order for Sale is quite complicated and will cost you around a grand upfront in Court fees.

 

Even if you get the OFS you'll then need to apply for a possession order and then market and sell etc the house and pay solicitors and estate agents fees.

 

Depending on the value of the debt it may not be worth it.

[AndyOrch]

May be easier and cheaper and successful to try Bailiff/Attachment of Earnings or Third Party Debt Order

 

Andy

[Colin973]

The charging order is for the sum of £3553 and its is against a rental property that the Debtor owns solely himself. I did try using HCEO's to recover the debt prior to the charging order but he was either never in or didn't answer the door when they called and so they were unsuccessful as he never responded to any of their letters or phone calls. The debtor is also self employed so a Attachment of Earning wouldn't be of any use.

 

 

A grand upfront for an order for sale. wow, I wasn't expecting it to be that much. Do I have any other options?

[AndyOrch]

Yes post #5 above yours

[Colin973]

Thanks for you reply Andy, although I'm not sure how any of those options could work. As I said, he is self employed so an Attachment of Earnings is of no use, I already had HCEO's chasing him for nearly 2 months and they had no joy and during a previous Order for Questioning he supplied details of his bank accounts showing he didn't have enough to cover then debt and I don't know how he is being paid (probably cash) by the tenants in the property I have the charging order against.

 

 

Could you breakdown/explain where the cost of a grand for the Order for sale comes from, is there a standard charge, is it worked out on the debt or the cost of the property?

[Guest]

part 8 claim (see cpr part 73.10, and associated practice direction)

application fee, around 300

multitrack fee for a hearing ( it will prob require an hearing. orders for sale hearings auto go to multitrack? ganymede/andy will confirm if n/a), around 1,000.

leaflet ex50 re court fees.

and then maybe the cost/expense of effecting the sale.

[Colin973]

Ok, so its going to be around 1300 just to get to the hearing stage, what happens if at that stage the judge/court reject the order for sale, who is then liable for the costs incurred, are they added to the outstanding debt amount or can't I reclaim that amount?

[AndyOrch]

" he supplied details of his bank accounts showing he didn't have enough to cover then debt "

 

If you have details of his accounts ...perhaps consider a Third Party Debt Order.

[Colin973]

I did look at getting a third party order previously but as the debtor wont have enough money in the account to pay the debt it wasn't really a viable option. During an order for questioning he provided a bank statement which showed he only had a few pound in the account and he detailed his earnings/outgoings (which I'm sure were bias in his interest) but regardless it showed he would not have more then a few hundred pound at any one time in the account, which obviously falls well short of the almost £4000 owed.

 

 

As I said, if I pursed the Order for Sale and it was rejected by the court but the charge remained in place, am I then liable for those costs

[AndyOrch]

If rejected you would stand your own loss.

[Colin973]

Ok, its looking like I will just have to wait til he decides to sell the property to get my money then. What happens if the debtor never sells the property and its is then inherited by whoever he wills it to, am I still in the same situation, would I have to wait for them to sell the property?

[AndyOrch]

I would assume you would have first call before the beneficiaries Colin

[Colin973]

Would it be possible if I found out the name of the tenant(s) in his rental property to somehow get the 'rent' they pay to him sent to me instead by way of a court order?

[AndyOrch]

Not that I am aware of...you just have to prove that he is receiving the rent ....therefore he has undisclosed income.

[Colin973]

He has declared receiving £750pm rent for the property during a previous Order for Questioning so at best at any one time that would be the most I could get with a Third Party Order which would be a waste of time. Looks like I am just going to have to wait it out. Thanks for all your help.

[Ganymede]

You wouldn't get £750 as I assume he has mortgage on his rental property?