Financial Conditions P.01/587 still outstanding on house for sale

[mathepac]

The legal pack for a property a family member is considering buying contains a Local Authority letter stating that the "Financial Conditions P.01/587 in relation to (specified property) are still outstanding for the sum of €5,058.70." The letter was issued earlier this month to the vendor's solicitors.

My family member contacted the vendor's solicitors who told him the debt will be discharged from the proceeds of the sale.

Is this unusual and should a written undertaking be sought via his solicitor?

He is in the process of consulting his own legal team but I wondered is this normal as the T&Cs of the sale (auction) state "you agree you have no come-back at all ever", in lay-man's terms.

Thanks.

 

[mf1]

Check the draft Contract - it is probably covered in that and will be dealt with by way of a solicitor's undertaking on closing.

mf

 

[mathepac]

I thought that might suffice, but as the sale is of a distressed property at auction there is, apparently, a hierarchy of creditors to be paid out of the proceeds. At the top are the banks and at the bottom is the LA who may not get paid in full or paid at all, leaving the property encumbered after closing.

Because of the nature of the debt, planning contribution, the house currently does not comply with planning conditions.

Thanks @mf1