Just wait until you go to sell that property if you thought purchasing your first property was unpleasant. Any real estate transaction involves a certain bit of “faffing around,” particularly when mortgage documents are involved, but some of it is downright absurd. If you want to avoid them, keep reading.
Leaseholds with Flammable Cladding
In the UK, for instance, local councils installed highly combustible cladding on over a hundred high-rise apartment buildings in England alone in order to save money. This was great up until June 2017, when a Grenfell tower in West London caught fire, killing 72 people and forcing hundreds more to flee their homes. This is a challenge for leaseholders of such flats because it makes selling the property nearly hard. This is due to the fact that mortgage lenders won’t even consider such properties if they are wearing armour and have a cattle prod in their hands. The only method to get past this in England is to create an EWS1 form, on which a qualified fire safety engineer certifies that the cladding has been taken off. Unfortunately, the UK only has a small number of these engineers. The lesson here is to contact your building management company, regardless of which side of the pond you reside on, and make sure that there are no hidden traps within your lease that are lying dormant. The sooner these can be diagnosed, the easier it is to resolve the problem via your management company, as it can take years to sort.
These commonly appear in real estate transactions and are usually unproblematic in and of themselves since, in practise, they are only ever problematic if one of your neighbours is both a) aware of them and b) unhappy with what you’re doing, which is incredibly rare. Generally speaking, if your neighbours are okay with it, you can call that roofing business regardless of what the restrictive covenant states. The issue arises, though, when your attorneys decide to make a little issue into a major one. This is due to the fact that, in their defence, lawyers have the duty to protect your legal and financial interests to the best of their abilities, which might force them to occasionally overreach. The lesson to be learned from this is when to tell your solicitor, “It’s fine.” Get me an indemnity policy, you say.
Then there are those purchasers, (sigh), the ones who can “totally” make good on that down payment, “absolutely” have a mortgage in principle, and “wouldn’t even think” of trying to renegotiate the sale price a week before completion after agreeing to the old one before you took the property off the market to waste months on a deal that can only fail. Or there are others that fall through right in the middle of the chain, at which time a number of real estate agreements may fail at once. The lesson here? Please make sure your buyer is trustworthy and in a strong position to make a purchase. Whatever you do, never ever sell your property to a person just because they appeared like a lovely guy.