Does this sound ridiculous
Discussion
I am having issues with this guy buying my flat, we are at the point where we are ready to exchange on the property, but there is a liability on a 106 agreement. This has been going on for a couple of weeks now so I’ll give you the short of it (hopefully).
Basically when my development was built the council told my developers that they had to keep 26 trees, in the area. If these trees were removed a penalty of £250 per tree would have to be paid by the developers, bringing a total liability of £6500. If in the unlikely event that the developers go bust (the developers are Crest Nicholson) this liability would then have to be paid by the home owners. There are 58 properties total on the development meaning £112.06 per property would have to be paid if all the trees were removed.
The Mr X (guy buying my property) wants me to leave the sum of £2500 with my solicitor to cover the indemnity. Which is quite frankly ridiculous. My solicitor thinks so too. But he and his solicitor are not backing down, and will not give any indication as to where this sum of £2500 is coming from. So far I’m not backing down either, I’ve said as a good will I will leave £115 with my solicitors to over that flats indemnity which quite frankly I feel as very generous.
Now I am at a situation where I don’t know what to do. Has anyone had any experience in this?
Basically when my development was built the council told my developers that they had to keep 26 trees, in the area. If these trees were removed a penalty of £250 per tree would have to be paid by the developers, bringing a total liability of £6500. If in the unlikely event that the developers go bust (the developers are Crest Nicholson) this liability would then have to be paid by the home owners. There are 58 properties total on the development meaning £112.06 per property would have to be paid if all the trees were removed.
The Mr X (guy buying my property) wants me to leave the sum of £2500 with my solicitor to cover the indemnity. Which is quite frankly ridiculous. My solicitor thinks so too. But he and his solicitor are not backing down, and will not give any indication as to where this sum of £2500 is coming from. So far I’m not backing down either, I’ve said as a good will I will leave £115 with my solicitors to over that flats indemnity which quite frankly I feel as very generous.
Now I am at a situation where I don’t know what to do. Has anyone had any experience in this?
pincher said:
Any update OP?
Basically they are not backing down. My solicitor has contacted Crest Nicholson asking for confirmation they would cover the liability etc. garycat said:
I thought there was some kind of insurance policy that could cover covenants, liabilities etc like these. You pay a small one-off premium and that would cover the eventuality.
There is but you can only take it if you don’t know what the liability is.Baldinho said:
PS are the trees actually there? If the development has been completed I doubt very much the original developer will come back to cut a few trees down...
The trees are all still there, mixture of old and new. Bill said:
How much of a steal is the new place? Worth sucking up the £2.5k loss? (how long do they want the bond held for?) Or just tell the agent to put it back on the market.
Well basically the home owners are getting divorced and want a quick sale. The problem I have is I don’t have £2.5k spare to just throw away. They want it held indefinitely.
Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff