Page 3 - Common Problems Encountered When Selling

Common Problems Encountered When Selling

Fortunately this scenario is extremely rare and on most occasions any problems relating to alterations will be
resolved.

Statutory Notices
A Statutory Notice is a Notice served on a property by a Local Authority demanding that certain repairs require to
be carried out. Such notices are usually served on flats (and normally on tenement buildings). If a Statutory
Notice has been served on a property the contract will be negotiated so that the seller will remain liable for the
repairs under the notice. There is often a large time delay between when the notice has been served and when

the repairs are carried out. To ensure the buyer’s interests are safeguarded it is the norm for a retention from the
purchase price to be agreed. The money will be retained by the buyer’s agents until such time as the repairs
have been carried out and final invoices have been issued. This may be in a few months time or several years
down the line.

If estimates have already been issued then agreement on the level of retention is normally straightforward. If
there are no estimates available then this may cause a few headaches. The seller may have to obtain his own
estimates or if time is short and there is not enough time to do this guidance will have to be obtained to agree a
suitable retention.

Specialist Reports
The Home Report or buyer’s survey report may highlight that Specialist Treatments have been carried out to the
property. Specialist Treatments includes treatments for wet rot, dry rot, rising damp and infestations. If such

treatments have been carried out the buyer will be looking for Guarantees. It is usual when such treatments have
been carried out that a 30 year Guarantee will be issued. It can often be a very costly business to have such
treatments carried out and the buyer would wish to be safeguarded against any such costs. Therefore the buyer
will require the Guarantee to be handed over to them on the date of entry.

If no guarantees are available, and on advice of the surveyor, there may have to be negotiations between the
buyer and seller as to how to proceed. It may be that a reduction in price may have to be agreed. Usually an

agreement will be reached without things getting too heated. Very occasionally consensus can not be made,
especially if the retention is a large one, and the sale may fall through.

The above 3 problems do commonly occur in conveyancing transactions. The reader should be re-
assured, however, that it is very rare for our conveyancing team not to be able to remedy the situation
particularly if both the buyer and the seller take reasonable positions. On most occasions the problem
will be ironed out allowing the sale of the property to proceed on the date of entry originally agreed.

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