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Lady Muck
Beginner May 2007

Quick Q Re: "Company Search" - any conveyancers about?

Lady Muck, 5 March, 2009 at 18:51 Posted on Off Topic Posts 0 1

Evening

Just wondered whether any of you legal bods know whether when purchasing a house from a company it is absolutely necessary to perform a company search if the transaction is not an arms length agreement e.g. where you have, in our case, a family farm and one of the director's sons buys a property from the farm.

The search fee cam to approx £65 if that helps identify what sort of search it was......?

Long story short our solicitor was a complete twunt when we bought a property from the family company in 2005 - transaction had to be done by 30th June to get it in by the financial year end and he nearly ballsed it up several times - almost deliberately, and despite written instructions to the contrary delayed things for petty reasons - even threatening not to complete on the final day over an item which he had already been told was in hand - we are quibbling the bill as I know he was on holiday for the majority of the time leading up to the transaction taking place and the day before completion the vendors solicitor (in the same firm) had to telephone me and ask what had been done and to ask for my instructions to carry out work to ensure that the sale took place in time.......

Any thoughts would be much appreciated.

TIA

Lady M

1 replies

Latest activity by Lady Muck, 5 March, 2009 at 19:44
  • Roobarb
    Beginner January 2007
    Roobarb ·
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    Subject to caveat I am in Scotland;

    Do you mean a search in order to ascertain whether the company had granted any floating charges?

    If so then yes I would carry it out in the circumstances you describe due to the potential seriousness of the ramifications of there being a floating charge you are not aware off, and it then crystallising before you had registered title to the property. It is perfectly feasible after all that the company could have granted a floating charge without the son of the director being made aware of it.

    Was the property purchased with a mortgage - if so the solicitor usually acts for the lender too so has obligations to them as well as to you. So even if you were satisfied that there were no floating charges likely to crystallise it has also to be demonstrated to the satisfaction of the lender.

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  • Lady Muck
    Beginner May 2007
    Lady Muck ·
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    Thanks Roobarb (caveat duly noted!)

    That makes sense - hadn't thought about it from that angle. It is just that he has been such a twunt in other areas that I am seriously uninclined to pay his bill..........

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