An apartment is up for sale which owes a few k in arrears for management fees over the years. Can the management company insist on the fees being paid before the sale is made. For example, if I have a mate and I'm selling for 180k to him for cash and I tell him that arrears for management fees are 10k so I'll give you the place for 160k. They OK with their own solicitors and the sale goes through ? The management company are no better off than before and my mate is happy to continue without paying.
Can Mgmt Co actually stop a sale of an apartment in arrears of mgmt fees
- Thread starter elcato
- Start date
Solicitors will not let the sale go through until all management fees are paid, its a binding legal agreement you sign into as soon as you buy an apartment run by a management company.
The same as all property tax payments up to date etc.
It's also not fair on your neighbors to pay for your bins and the upkeep of your apartment block by you not paying your share.
The same as all property tax payments up to date etc.
It's also not fair on your neighbors to pay for your bins and the upkeep of your apartment block by you not paying your share.
Just to be clear here, I am not selling any apartment nor in arrears. The scenario above is purely for demonstrative purposes but most people will have got that I expect. As it happens I am seeking advice as a bystander/member in the current block I'm in where an apartment is for sale and owes fees.
Surely the solicitors are acting for their own client i.e. buyer and seller. I'm assuming here that the management company do not have a solicitor acting as they think that the seller will pay before any signing of the dotted line. Hypodermic-ally speaking now lads
You can sell without any interference from the management company to a cash buyer. This only becomes a problem if they are securing a Mortgage on the place as the Management company can withhold documentation, which the bank would need before releasing payments.
Not all contracts with management companies are the same.
Some have a contract where any unpaid fee becomes a charge on the property. While it may be possible to sell to a mate, with a useless solicitor, for cash. the mate would still not have a clean title, the charge would still lie on the property.
In reality no one would be able to get a mortgage on such a property. Any cash buyer would be strongly advised by a solicitor against buying.
Some have a contract where any unpaid fee becomes a charge on the property. While it may be possible to sell to a mate, with a useless solicitor, for cash. the mate would still not have a clean title, the charge would still lie on the property.
In reality no one would be able to get a mortgage on such a property. Any cash buyer would be strongly advised by a solicitor against buying.
technically correct but you would need a very cavalier solicitor to forgo all due diligence and conveyancing best practice. In such a case the new owner gets lumbered with the fees. Why bother when the seller needs to pay them?