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jl294
Just Joined

2 Posts

Posted - 22 February 2018 :  21:55:50  Show Profile  Reply with Quote
Hi everyone.

Wondering someone can help, just found out yesterday that the seller of the house (was set to get the keys in a week) I was trying to buy had a protected trusted deed. The was flagged when the sellers solicitor was doing a final check. It turns out that the sellers trustee didn't know about the house. The seller only has one more year before the trust deed is finished. How can it be that the trustee didnt know about the house? Does this mean the trust deed didn't include the house? So the sale could go through without him having a claim an money? This has stopped our purchase so far as its the family dealing with the sale for the seller due to health, they had no clue about the trust deed either.

Any advice would be most welcome.

Kind Regards

James

James Lynch

TDA (Debt Adviser)
Trust Deed Expert



12692 Posts

Posted - 23 February 2018 :  08:56:20  Show Profile  Reply with Quote
Welcome to the forum jl294.

My guess would be that the seller failed to disclose the property and that other checks available to the trustee failed to discover it. That's just a guess though and I may not be correct.

While a trust deed can, in theory at least, exclude a property, this is pretty rare in practice. This would be a known property that is specifically excluded with the consent of the creditors, rather than a property that hadn't been identified at all.

I'd usually expect that the proceeds of the sale would go to the trustee to help repay the seller's creditors.

This obviously creates a concern that the seller might not want to sell the property any longer. Having said that, a trustee might look to sell an undisclosed property in any case to help generate funds for the creditors. Even if that happened though, it could take a long while.

Does the seller live in the property that is being sold?

I think it advisable that either you or your legal representatives contact the trustee concerned to try to establish where this might go from here.

A really unfortunate situation for you and I'm sorry to hear that you now have all of this uncertainty at such a late stage of your purchase.

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jl294
Just Joined

2 Posts

Posted - 23 February 2018 :  11:58:58  Show Profile  Reply with Quote
Hi TDA

Thank you for your reply. Well the seller was moving out and was meant to be moving into another property however since he didn't tell anyone about the trust deed until a final check was carried out the money that would go to the trustee (Which would clear the debt and leave the sell with some money) would not be enough for him to buy the house he was after however he would have enough to go for a lower value house. I have been told by the family that he has to move out of the house regardless (Health issue and he cant use the stairs and needs a 1 floor house)

The thing that confuses me is that if the trustee didn't know about it but does now why wouldn't he force the sale to get all the debt especially since the trust deed ends next April resulting in writing off at least 19000.

James Lynch
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TDA (Debt Adviser)
Trust Deed Expert



12692 Posts

Posted - 23 February 2018 :  16:46:54  Show Profile  Reply with Quote
That would usually be a last resort jl294; it would be time consuming and expensive to force a sale.

If there's another voluntary way to release the funds that would be the preferred option usually.

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Kevin Mapstone
Trust Deed Expert



3625 Posts

Posted - 26 February 2018 :  12:22:53  Show Profile  Reply with Quote
It may well come to a forced sale at some point, jl294, but as Trust Deed Assistant says, the trustee would exhaust other options for realising the value first.

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