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Hi
We completed the purchase on a freehold property in June and the title is being registered with Land Registry, which should be completed very soon.
All the properties on the estate have a Deed of Covenant with the Management company. The previous owner had a Deed of Covenant and during the purchase the Management Company advised to our solicitor the fees for the Certificate and Deed of Covenant.
A Certificate was provided a few months ago and our solicitor sent this to Land Registry for the transfer of title (as title deeds state no transfer of title without consent from Management Company).
However, to date there has been no mention of the Deed of Covenant nor has the Management Company asked for the fees (Certificate & Deed of Covenant). The Management Company has created an account for us for the annual Service Charge due in January but so far there has been no bill.
I’ve raised this with our solicitor and he says he is not aware of anything else he needs to do and said we just need for Land Registry to complete registration.
This does not seem correct as we would have thought the Management Company would want a Deed of Covenant in place so that we agree to pay the fees etc.
So my question what happens if down the line the Management Company realises that a Deed of Covenant was missed? Would we have to pay for the Deed then and is it likely to be more expensive than doing it now? Would my solicitor have to rectify this for free if it turns out it was missed at time of purchase?
Also, what if a Deed is never done and we come to sell the property, will there be any problems? We intend to pay the Service Charge but there isn’t a Deed of Covenant in place.
Thanks for your help
We completed the purchase on a freehold property in June and the title is being registered with Land Registry, which should be completed very soon.
All the properties on the estate have a Deed of Covenant with the Management company. The previous owner had a Deed of Covenant and during the purchase the Management Company advised to our solicitor the fees for the Certificate and Deed of Covenant.
A Certificate was provided a few months ago and our solicitor sent this to Land Registry for the transfer of title (as title deeds state no transfer of title without consent from Management Company).
However, to date there has been no mention of the Deed of Covenant nor has the Management Company asked for the fees (Certificate & Deed of Covenant). The Management Company has created an account for us for the annual Service Charge due in January but so far there has been no bill.
I’ve raised this with our solicitor and he says he is not aware of anything else he needs to do and said we just need for Land Registry to complete registration.
This does not seem correct as we would have thought the Management Company would want a Deed of Covenant in place so that we agree to pay the fees etc.
So my question what happens if down the line the Management Company realises that a Deed of Covenant was missed? Would we have to pay for the Deed then and is it likely to be more expensive than doing it now? Would my solicitor have to rectify this for free if it turns out it was missed at time of purchase?
Also, what if a Deed is never done and we come to sell the property, will there be any problems? We intend to pay the Service Charge but there isn’t a Deed of Covenant in place.
Thanks for your help
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