Missives Flashcards
Fixtures, fittings & contents
Clause 1
Must distinguish between heritable and moveable property
if fixtures removed then breach of contract
Awareness of circumstances affecting the property
Clause 2
Eg notcies of payment of improvement/ repairs, any history of flooding within 5 years, other circs that are not disclosed in the Home Report
Specialist Reports
Clause 3
if there have been any specialist treatments carried out to the property - accompanied by a guarantee
Central heating, systems and appliances
Clause 4
- central heating, systems and appliances all in good working order (if not, disclose during contract stage)
- commensurate with age - protects the seller
- tell purchaser client to check if things are working when they first move in
Development
Clause 5
the position regarding planning notices actually issued and affecting the property can be verified either by the planning department of local council or PEC that deals with planning matters
Seller’s solicitor needs to check whether the seller has received any notices and is able to give this warranty
Statutory notices
Clause 6
covers notices or orders issued prior to date of conclusion of missives, not date of entry
Property Management and factors
Clause 7
full details of any factoring and block insurance arrangements
- what they pay, how much etc
Alterations
Clause 8
Any additions or alterations completed within 20 years of date of entry - building regulation consents from local authority required
Disputes/ litigation
Clause 9
no disputes with neighbours etc relating to access, title, or common property
Access
Clause 10
give the purchaser reasonable access for inspection, measurement or the provision of quotations
Utilities and services
Clause 11
seller will cooperate in the transfer of utility bills
Requirements for form
Missives must be written
Requirements for consensus
Seller and purchaser must consent to conditions of the missives
Requirements for content in contract
Price, property, parties, date of entry etc
purchaser wants you to submit an offer on property they have not viewed
can follow instruction but advise them to view
mother asks you to submit offer on behalf of her son who works offshore
cannot follow instruction - need his consent
purchasing client asks you not to take any chasing calls from selling solicitor - not sure if they can get mortgage
make sellers agent aware of the circumstances - could make conditional offer with suspensive condition on client getting a mortgage
sellers agent might issue a de planto acceptance - no obligations
client would not be bound until mortgage is obtained
seller verbally agreed an odder at a closing date for his property then said to one of the unsuccessful bidders that they have a done deal. now he wants you to communicate acceptance to second party. you have already communicated acceptance to first party
might have to stop acting for client
depends when and how there was communication of acceptance
practical problems from buying a new build in terms of date of entry
often no fixed date of entry - settlement will be conditional on the house being completed and passed as fit for habitation by local authority
builders might give completion date but not warrant this
why is it important to keep clients up to date?
ensures they are satisfied with the status of the transaction so problems are identified ASAP
prevents negligence claims
selling client asks what they can do to get a purchaser to respond to qualified acceptance?
set a closing date if there is not already one
phone purchaser’s solicitor
ultimatum - we’ll put this back on the market if you don’t hurry (be careful with this one)
how would you explain a suspensive condition?
possible to conclude missives conditional on something happening (getting a mortgage). if they do not happen, or do not happen in the way specified, it will entitle the parties to withdraw
conditional missives with suspensive conditions
most common is ‘subject to survey’ - conditional on a satisfactory survey being obtained
purpose of Property enquiry certificate
gives details of any notices served on the property owners such as repair notices
careful attention to matters it discloses
client selling flat in tenement building had quotes through the door for repainting the close. wont be done until after the date of entry
client must make the purchaser aware of the written notification and must gain consent
client remains liable for the costs - clause 6.2
if work is incomplete or unpaid then buyer can retain cost from the price
in this case work is not necessary and not approved but must still tell purchaser
describe missives
Your offer must be sent as a letter from your solicitor. The seller will then consider the offer.
The seller’s solicitor and your solicitor will then send each other letters negotiating these conditions. These letters are called ‘missives’.
how does PEC differ from Home Report
PEC deals specifically with planning matters and confirms position regarding roads, sewage, water etc
HR is survey of condition, PEC is standard practice for marketing a god title
