Can they force a sale?

[NorthernStar09]

Hi, just after some advice please from anyone who has been through similar.
We've been trying to buy a property for the past 6 months, all ready to exchange but the seller is now refusing to sign the contract..

It's not been easy as they are going through a separation and in the last couple of days the bank is now involved and an eviction notice has been sent from the bank to the occupier.. The seller is the sole homeowner, but the occupier has said that if they keep refusing the court can take over and force the sale as we have an imminent exchange/completion due to take place.

We still want to buy the property and we can potentially hang on a week or 2 if the court is able to do this, but 1. can they do this? 2. how long does that take?

If the financial settlement between the seller and their ex means the property has to be sold, the court can indeed force the sale. However, if the process has not yet started, this could take a few months.

Thank you @prh47bridge
I believe there has already been a court order on the property to be sold a while back, which is why we are getting it for the price we are, it could potentially be our dream home which is why we've stuck through it this long. (it was meant to be a quick sale to complete before Christmas)

There is a final settlement hearing in a couple of weeks so I'm keen to know if it's worth sticking around for or cut our losses if its going to take another 6 months. We have chain free buyers who won't hang around forever so don't want to lose them either. Just feel in limbo at the moment.

If an eviction notice has only been served there will be a notice period before the bank can apply to the court for possession. It will then need to be listed for a possession hearing. That could easily take 6 months to a year

It would be unusual for there to be a court order for sale of property before the conclusion of financial remedies (because if both parties agree it will need to be sold no order needed and if they don’t will need to be determined by court). You say there is a “final settlement hearing” there is no such thing in the court process you have:

First appointment
Financial Dispute Resolution Hearing (parties are expected to come with offers and be prepared to negotiate. Judge will usually give indication of what will happen at final hearing).
Final Hearing (if they can’t settle court decides).

There’s a good chance the occupier is being difficult to try and get the seller to give them more money. It’s a real pain to get someone out of a house (and they will know that).

You need to get onto your solicitor and establish where they are in the financial remedies process.

If they are at FDR stage then you could be another year before a final hearing.

Even if there is a final hearing and court orders sale then the occupier could wtill refuse.

I also want to know what’s the hold up. If it’s a couple of grand between them you may want to consider chucking a bit more money to get the matter over the line. Otherwise your best bet is to give a deadline (that way if occupier is being cheeky but does want the sale then they are likely to comply, if they are going to be a pain they won’t and you will know sooner then later and can walk away).

If it's been agreed that the house has to be sold I'm surprised that would be held up by the settlement agreement. Or are they (or one of them) disputing the sale amount? I would have thought the settlement would be easier if anything, if the house was turned into cash.

Have you discussed why the sale is being delayed with your solicitor?

If only one of them wants to sell the house and the other one doesn't it could take forever to sort out.

I'd wait until their court hearing next week. The court can force a sale.

@WillowBarkTree The eviction notice is for next month . Apologies if I've got the terms incorrect. The occupier wants to move, they have been really helpful where they can and was happy for our completion date of this week, everyone was until it came to exchange and the seller went radio silent.

We've offered all sorts to get this over the line but just getting no response, so frustrating. If they don't want to sell it to us now I'd rather them just say, why pull us along for the ride?

@Silverbirchtwo I don't believe it's held up by the settlement, completion was due for this week with no issues and everything in place. The seller wants this sale too and has said to me direct he wants to sell the house to us so just getting conflicting info. Unfortunately our solicitor cannot help much and is liaising regularly with the sellers solicitor but without communication from the seller no one knows.. hoping to hear back from the bank too on where we stand if we were to purchase it from the bank, god knows how long that takes though.

We are only a signature away and the occupier is convinced that if docs aren't signed by the hearing, and there is an imminent sale pending then the judge can take it out of his hands and get this through.. as @caringcarer has said, i really hope so!!

This has been a year long process with difficult buyers at the start who then pulled out last minute to now have this, exhausting!

So the court can sign documents on a house sale, if it has made an order for sale (that’s crucial, just because there is a sale that might be lost is irrelevant if no order for sale made). Even if there is an order for sale they can sign documents depends what the upcoming hearing is for If they have a financial dispute resolution hearing the court can’t deal with contested issues.

You aren’t getting the whole story because they are clearly fighting about how to divide up the money (of course they could just sell and get solicitors to hold), but then threat of losing the sale (which sounds like the seller is probably holding over occupier - who is going to be evicted next month so is in a bad position (I’m presuming seller has defaulted on mortgage)) is what they are using to negotiate.

The risk is the seller could move back in if they are being really difficult and force mortgage company to evict them - would absolutely be cutting off their nose to spite their face- but people do terrible things when getting divorced.

You need to know:

Is there a court order for sale? If yes does it include a term court can sign documents if needed? (Doesn’t have to to get court to sign but does mean an application would be needed.

What is the next hearing? Settlement hearing or final hearing and when is it.

In terms of buying from bank they will push through quickly. You could turn round in a couple of weeks if there is vacant possession.

I think I would find out the information and then decide if you want to put in a deadline or walk.

The court forced the sale of my and my exh business because he refused to buy my 50 percent shares off me yet blocked me selling to anyone else and refused to sell him. Shares to me as well. The judge ordered the business sold. He even tried hard to put off potential buyers but the judge held firm and told his solicitor he would be in contempt of court if he contacted potential purchases to try to put them off sale.

@WillowBarkTree thank you so much, that’s really helpful.

Can I find out from my solicitor if there is a court order for sale? Ie. Will it be on the land registry?
and it’s a final hearing scheduled for 2 weeks time.

@caringcarer sorry to hear you went through that, sounds pretty horrendous!

@NorthernStar09 the order would not be on the land registry. Courts can make orders for the Registrar to enter something on the land registry (usually can’t dispose of property without court order etc), but not court order for sale.

Your solicitor can ask the parties, but you mentioned “you think there is one”. Why do you think there is one? As mentioned I think that’s highly unlikely - orders for sale tend to be made at final hearing (once court has decided how to split everything up). What I suspect is the case is the parties have agreed the property needs to be sold (and that may be recorded in an order, but that’s not an order for sale), they are now fighting about how to divide up money and I imagine the seller is going, “fine if you won’t agree what I want I’ll lose the sale and you will have to wait even longer for money”. Stupid tactic because if they lose you the bank will repossess and sell the property cheaply to get rid of quickly (actually they would likely just come straight to you and sell to you).

The seller is messing you around because they could sell to you and just put the proceeds of sale in an account with the solicitor and then court says how to divide up.

@WillowBarkTree yes that does make more sense.
I’m sure I remember someone mentioning there was a court order / or lender stating they had to sell by X date but we were never told this date, could also be a tactic by the EAs!

Do you know what would happen if the seller voluntarily repossessed the property before the eviction notice?

So it could be they’ve recorded in the court order that the property should be sold. Doubt there will be an order saying property will be sold by x date (as that’s reliant on there being a buyer which court can’t mandate).

So mortgage companies will often say to people who’ve defaulted they have x date to sell otherwise they will proceed to evict. They may even have a court order to that effect (a consent order, usually that possession proceedings will be adjourned until x date to allow sale of the property, if property not sold matter will be listed for possession hearing).

Mortgage companies hate evicting and having to resell properties (cost lots and unless there is loads of equity in the property often won’t recover).

Sorry to ask another question about terminology, there is no such thing as an “eviction notice”. So to repossess a property:

• You have to give notice to occupier/tenant to leave (you’ll hear it called a 8, a 21 notice).
• if they don’t leave you then apply to the court for a possession order - which will say they have to get out by x date (or forthwith).
• if they don’t leave you then have to apply for a warrant of eviction (usually done on papers) and that’s when the bailiffs turn up at the door and chuck you out.

Sorry to be pedantic but if the seller went back in, what will happen depends on where they are in possession proceedings (and also whose name is on any order).

Your solicitor should know all this (and told you in writing, because it may have impacted on your views on buying).. Your sellers have a legal obligation to disclose all material facts (which would include any notices or orders in respect of property).

@WillowBarkTree please don’t apologise, all this just shows you receive a fraction of the information needed which is why we feel in limbo as much as we do, and worry we are hanging on for no reason when it could all be taken out of our hands.

it probably is your first point as I know they have been given approx. 4/5 weeks notice to vacate the property. The final hearing is scheduled for before this.

Most of this information is coming from the occupier who is trying to get this sale through as much as we are, and as they are not part of the mortgage the only solicitor we can get info from is the sellers, and they have gone radio silent on everyone.
Our solicitors are as unsure as we are due to the small bits of info we have.

No doubt we’ll get some answers in the next couple of weeks, but it’s good to have a bit more understanding of what goes on so thank you!

@NorthernStar09 my advice give seller deadline and if they don’t comply walk away. I know the property is a good value, but the fact you have little information and they are radio silencing, suggests the seller is not going to suddenly start complying with court orders.

I remember selling and buying in 2015 and we had a buyer go radio silence, the resounding advice on here was deadline and then walk. Didn’t follow, held on, got fobbed off, 6 weeks later still no further, we gave deadline and suddenly they were abroad for medical treatment. We pull out.

We resold fairly. Our buyers tried to drop the asking price 20 k the night before exchange, followed the MN advice, we told them asking price and exchange tomorrow - guess what they did.

@WillowBarkTree Hmm I think you're right, think we're going to give it until this final hearing and if we're none the wiser by then, will walk away. it's not fair on anyone.

Just awful isn't it, same happened to my sister with her buyer and they went ahead in the end too after an ultimatum.

@WillowBarkTree little update here, court appearance this morning to extend the ‘eviction notice’. Our solicitor has advised that this is good as the lender has potentially done this as there is an imminent sale.

Final hearing next week where an order for sale will be requested, everyone is hoping the judge can sign the paperwork at the hearing for the sale to proceed without the seller, this has been advised by the occupiers solicitor, keeping everything crossed but at least we will know for sure then and can either move forward or move on.

OP I’m glad you’ve got some more definite answers. Is the seller still radio silence?

@WillowBarkTree yeah unfortunately, it would make things alot easier if not but obviously got there reasons.

@WillowBarkTree We're still holding out until next week for the final hearing, do you know what would happen if the seller doesn't show up?

We also ideally need him to bring the contract so the judge could potentially sign this off but I very much doubt he will do that, do we have options there?

@NorthernStar09 it depends (such a lawyer answer - sorry)…

Depends on reason:

• if they say ill health judge could adjourn and ask for proof
• they could adjourn and make penal order that they have to attend next hearing
• they could just go ahead and make a final order

Be warned, as you have probably heard, there is a real shortage of judges (and FRC work has now been “ticketed (before any District Judge could hear) and so the hearing could be stood down for lack of judicial availability.

But if an order is made, court decides sale needs to go ahead and more importantly your sale…

The court could sign a contract there and then (I think unlikely particular if seller not there) they would still want them to have an ability to apply to appeal before the sale occurs (otherwise could get incredibly messy if they find out and appeal after)…

So in terms of the contract signing the court could: order the seller to sign by x date (and again attach a penal notice), they could say a nominated person can sign (could be partner of sellers solicitor firm) by x date or they could order your solicitors to file (send to court) the contract of sale and court will sign.

I do have my fingers crossed for you, but I would also advise you to have a deadline in your mind, and once that it crossed move on.

@WillowBarkTree thank you for the above!
This week is definitely our deadline.

We finally have the signed documents needed but now obviously still need the seller to authorise exchange and get hold of the redemption statement which is sitting with the litigation team due to the repossession, the solicitor has made them aware that we now have docs and seller advised to authorise exchange, but how long can the litigation team take? They’ve not got back to anything for 2-3 weeks already..

Seems we take a tiny step forward and 3 back 🤦🏼‍♀️

So the “litigation team” will just be a conveyor belt of thousands of possession claims at various stages. Impossible to say how long they will take.

Your solicitor needs to be on to them everyday by phone. They need to be asking for a managers name so they can call/email them. The reality is this can be sent over by email and so will take no more then an hour you just need to get it to the top of the pile.

remember in this situation whoever screams loudest gets dealt with first…

@WillowBarkTree unfortunately our solicitor can’t do anything from his side but is chasing the sellers sol.

The court ordered the seller to sign the letter that the lender needs to release the redemption figure and authorise exchange today, if he doesn’t, apparently the judge will override it but we need it to happen this week or we will be pulling out.

@NorthernStar09 I have my fingers and toes crossed it all goes through for you.