In the current market we are seeing a lot of properties being sold by a receiver. This usually occurs where a borrower has defaulted on a loan and the Bank has appointed a receiver to sell the property. The proceeds of the sale are used to repay the original loan provided by the Bank.
What does this mean for me, the purchaser?
As the receiver is appointed by the Bank he/she will not have the same knowledge of the property as the owner of that property who may have lived there for a number of years. Therefore the Receiver will amend the contract for sale by adding special conditions which would not be found in an ordinary contract for sale. These conditions will typically exclude any warranties from or liability attaching to the receiver in relation to the following
- Identity of the property.
- Planning and building control regulations.
- The obligation to disclose notices that were served regarding the property.
- Personal and professional responsibility.
This list is not exclusive and each contract must be examined individually. Due to the many pitfalls which exist when purchasing from a receiver it is essential that a purchaser obtains legal advice before signing the contract for sale.
Please note that this article is for information purposes only and it is essential that each contract is examined on a case by case basis. MBSolicitors are experienced in providing advice on contracts for sale where the vendor is a bank appointed receiver.
For further information or if you have a related legal query contact MBSolicitors.