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Can the Property Company do this?

(3 Posts)
TrickyD Wed 08-Jun-16 15:38:14

I bought a flat last June to BTL (sorry). The company to whom we pay ground rent etc has written to say that they are new and have taken the previous company over. They apparently discovered that a large deficit had been allowed to accrue over the past few years and have asked for a one off payment of £1,400 to cover this.

Since the deficit arose well before I bought the property , AIBU to tell them it is not my problem and refuse to pay?

HereIAm20 Wed 08-Jun-16 16:28:15

No - sorry - your solicitor upon doing the conveyancing should have made enquiries as to any outstanding ground rent or service charge and insisted that all outstanding debt was cleared prior to the sale going through. The debt passes with the property.

If the solicitor did not do this you have a claim against them for the amount accrued prior to completion and they will be insured so don't let them fob you off. For that amount I suspect the firm will pay rather than want to make a claim against their insurance (and the hassle and rise in premiums which would happen)>

Worse case scenario is they did find out and inform you in writing but you didn't notice because then you will have to pay.

TrickyD Wed 08-Jun-16 17:05:56

Thanks HereIam. I did think that the reason why you pay your conveyancing solicitor was to avoid problems like this.

I have now had a word with said solicitor and he says he will write and ask them to send a Section20 letter and if they don't do this within 14 days the claim will be void,.

But a quick Google makes me wonder whether this is relevant and whether it us a way of trying to wriggle out of their carelessness in not checking the last three years. accounts closely enough.

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