Repayment of stolen management fees a condition of sale?

Repayment of stolen management fees a condition of sale?

0:12 AM, 24th May 2024, About 6 months ago 11

Text Size

There are 6 freehold properties all equally own a shared drive and communal land. Membership of the management company is a condition of purchase of any of the 6 properties.

One property is now for sale and the joint owner of that property got access to the management company bank account and emptied it?

Can repayment of these management funds be made a condition of sale?

We’ve had brief legal advice (with which I agree) that we can’t – that it’s theft by an individual and isn’t a recoverable debt associated with the property and that we should try & recover the money through small claims court.

One or two members still want to make it a condition of sale. I’m concerned if we do that we could cause the sale to fall through and be liable for compensation to the purchaser and/or innocent joint owner of the property for sale.

Any advice would be greatly appreciated.

Becky


Share This Article


Comments

NewYorkie

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:32 PM, 24th May 2024, About 6 months ago

A past managing agent claimed I hadn't paid my ground rent and service charge, when I had. They still went ahead and told my lender that I hadn't paid, and they paid the agent and added it to my mortgage without checking. Lenders will bend over backwards to protect their asset.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More