Unilateral Notice notification

Hi Emma - your understanding is correct re wider checks with the beneficiary. It appears that they have responded so the application needs to be reviewed further.
The casework team will contact you as appropriate once the review is complete or when the register has ben updated.
I can't be definitive re timescales other than that review will be asap due to the expedite status.
GM781726

Thanks for the quick response as usual Adam. 

I guess it's just a waiting game for us. Fingers crossed that the beneficiary don't cause us any additional problems as they haven't been very nice so far........

Merry Christmas to you and thank you for all of your help. 

Emma 

Emma - correct as you will have to let this play out within the casework team as to what the response is and it's affect. 
Merry Christmas to you also

Good morning and a Happy New Year.

Just a quick question further to my last enquiry. Because I was sent emails regarding the agreement to expedite the UN4, will the casework team continue to send information via email or will they post it?

I am away at the moment so would have to get somebody to check my post at my address if there is likely to be something sent in the post that I might need to action quickly. 

Many thanks.

Emma

Hello again,

Sorry to be back, but I have more questions now the situation has developed.

My brother checked my post for me and the "beneficiary" has objected to the removal of the UN1. I am not really surprised as I think he wants to make it as difficult as possible for us to sell it and this is probably an easier/cheaper way than taking legal action himself which is likely to fail.

I have read all the information that comes with the objection, but what I am concerned about is that I have not been sent a copy of their grounds for the objection which I read Land Registry usually send to the applicant.   Without this, it is difficult to know whether to cancel the UN4 application, try to negotiate (which is unlikely as we have already tried that with other matters) or allow it to go to the Tribunal. 

Our solicitor believes that the buyer is likely to withdraw from the sale. Does this mean that we will never be able to sell this house?

Please can you advise how I get a copy of their objection because I only have until the 21st of January to send the completed form back.

Thank you again.

Emma

Emma - the details of the application and objection are included in the 10 page Notice dated 30th December.
If you are lacking any details that you think you are entitled to then please respond to the Notice as directed and using the contact details provided. There's nothing we can do via this forum that's specific to an application 
There is clearly an issue to be resolved re the UN and the objection that will need to be resolved. IN my experience the presence of such a UN will invariably prevent a buyer from completing on a purchase when another interest exists
Please do speak to your legal rep for guidance and how best to deal with the grounds for objection and what needs to happen next 
 

Thanks Adam.

I have a 22 page document in total, but only seem to have page 1 of their "consent or objection" section.

I will double check with my brother that he has scanned it all over to me correctly, otherwise I will respond to the Notice as you advise. It is so worrying that this can happen when they don't even have to prove their interest and so can use the process maliciously. 

I don't have a legal rep but I will reply to the notice myself. I guess we are going to lose the sale - which is sadly this person's intention. 

Thanks again.
Emma

Emma - if they use the process maliciously then you have the option of taking them to court for 'losses' etc as appropriate. I would strongly recommend at least seeking legal advice to help understand the legal nuances and what options you have to resolve this

Thanks Adam.
I have asked our conveyancing solicitor for help with this many times but they haven't been forthcoming.
I just don't see how we are ever going to be able to sell this property if they have a right to buy option that they have no intention of ever using. 
I've replied via email to ask for the details of their objection, so hopefully they will send that through.
Do you have any idea how long the Tribunal process takes at all?

Emma

Emma - no direct experience of how long it can take but I doubt if it's a 'quick' resolution. The support team dealing with the application/objection are best placed to advise re timescales. 

Many thanks, I will drop them an email.

Emma

Hi Adam (again)
The situation is still evolving slowly and I am also waiting to hear if we have lost the sale of the property, but I have a few more questions about this darn UN1 if that's ok. They are not legal questions, they are all around the process etc. I have tried to be as clear as possible, I hope it is easy enough to understand the points I am trying to make. 

As I mentioned previously, the details of the objection by the third party to remove the UN1 were missing from the bundle of info that I received in the post, but I have now been sent a copy by Simon Morley at the Leicester office via email, which is useful.  There is also some other info missing that I have requested, just waiting for that too, plus it looks like I now have an extra week to decide what to do next, hence the further questions.

To recap, the third party applied for the UN1 based an an Option Agreement, so presumably that is the interest they are trying to protect (as is their right no doubt).

Having re-read our (very complicated) vendor agreement, there does seem to be a clause that mentions an Option to purchase, but it only seems to last as long as we are in contract with them. (It also mentions payment of an Option Fee which has never been paid/received).

Elsewhere, in the small print, there is also mention of a UN1 which refers to them being able to apply for a UN1 to protect all fees owed to them. 

So far, all the information and supporting documents they have supplied to HMLR in relation to their objection for removing the UN1 relate to alleged breach of contract and fees they claim that we owe, no mention of the Option Agreement other than that they state it exists. 

Although our dealings with this Estate Agent came to an end early last year (when their buyer withdrew from the sale) in order to avoid any further doubt whatsoever and to try and sort out this UN1, last week we gave (another) notice to them to end our agreement. That 14 day notice period ends on the 24th of January, which means they cannot dispute our agreement with them ends on the same day. 

Once the agreement ends on the 24th, I have to assume the Option Agreement clause does too.

I now have until the 28th of January to decide whether to ask for the matter to be referred to the tribunal or to withdraw my request to have the UN1 removed.  This is where the further questions come in.

By the 28th of January (decision day) the situation they seem to be relying upon will have drastically changed. 
We categorically will have ended our agreement with them, therefore they must surely no longer have the Option to purchase - which was the basis of their UN1. And unless they chose to use that option before then and offer to buy the property themselves, then surely they lose the Option.

In addition, the invoices they say are outstanding (which were due to a solicitor and not them as our estate agent) were actually paid last October. 

I appreciate that they may still allege breach of contract (and hence fees owed) but I cannot see how that is relevant to or protected by their application based on an Option Agreement.  Surely that will be down to the Courts to resolve if they choose to go down that route, not the Tribunal?

So I do not know know whether I should still ask for it to be referred to the Tribunal (and hope that they will see that their claim/application is now groundless because the Option Agreement has ended and order them to proceed to court) or should I withdraw this application and re-apply to have it removed after the 14 days have expired so I can state that we are no longer under the agreement with them and so they no longer have an Option Agreement to protect? Is it even possible to send another UN4 at a later date?

I have tried to read around this subject but it is quite difficult. My gut is telling me that they seem to be relying on a UN1 applied for based on an Option Agreement to actually try and protect what they allege are fees owed. I don't know if this was an error on their part or if this is normal practice because I do not know the list of reasons that you are able to apply for a UN1.  I would have thought they should have used a different reason such as contract/profit/proceeds of sale it that is what they were trying to protect, but again I don't know if those are real categories.

I only know that this UN1 is affecting the sale of the property, which is probably their intention. Yet we cannot get the funds to pay anything unless we can sell it. 

I hope you understand my questions, I really am trying to resolve this without wasting the Tribunals and everyone else's time. 

Many thanks,

Emma

Hi Emma - I'll do my best but must tread carefully as the specific applications are ongoing 

If the Option Agreement exists and the T&Cs still apply then I would assume that they can still protect it, yes.
The devil will be in the details re the agreement/option fee etc but that's where any legal advice must come in. When it was drawn up and entered into would have been the best time to have that clarified including what might alter the legal situation over time- we would have no role to play in that.
A UN1 is a means of protecting such third party interests on the register - Notices, restrictions and protection of third-party interests (PG19) - GOV.UK

The Tribunal is there to try and help resolve such matters and without the need to perhaps go to court but that will have been explained in the 'process' as outlined to date

Your Qs re what to do next are not for us to answer. If you withdraw now then you may, if you wish, apply at a later date with form UN4 to cancel the Unilateral Notice but the beneficiary may object and then ............

The key appears to be that they have an interest which can and has been protected on the register. Removal then relies on that interest having come to an end or not being enforceable. That appears to be where the issues now lie 

Any form of Notice will affect a purchase as a buyer will insist that the interest is resolved in some way and the Notice removed before they will complete
If you are reliant on the sale monies to be able to release the option then that's something to discuss with the conveyancer/beneficiaries to ascertain how the purchase might complete and the monies used to pay off the beneficiary - again not for HMLR to advise on I'm afraid
 

Thanks for the quick response Adam, I do understand that you have to tread carefully and some of what I have asked relates to the agreement.

I also know there are other legal matters - they already have a solicitor acting for them and are threatening legal action, although it is several months since we last heard from them. We know this is something separate that we have to deal with, and we are more than prepared to. 

I have read the PG19 quite a few times but there isn't anything seems to help in relation to the specifics of our situation. I couldn't find any sort of definite list of acceptable reasons for applying for a UN1 (I know that the Option to Buy is one of the accepted reasons, but I am not sure if protecting a share of the proceeds of a sale is).

Now that we have given them an absolute, impossible to misinterpret, 14-day notice (as per their terms) then I have to presume that as of the 28th of January we are no longer tied to their agreement. And because their Option to buy is only granted for "any time within the term of the agreement" then that too will end on the 28th. 

Of course, they have not responded to the email giving notice but I suppose technically, until the 28th, they could say they want to use their Option clause and buy the property (although this is highly unlikely as they did not buy any of the other 12 properties they were tasked with selling for us). 

I suppose I am trying to think of the most efficient way to have the UN1 removed.

Ignoring the fact for a minute that in my mind they seem to using the Option to Buy as a means of legitimately getting the UN1 registered whilst what they are really trying to protect is their potential profit from the lost sale, which just doesn't seem right or fair, I was wondering if it might be better to withdraw this UN4 and reapply stating we are no longer in contract with them, because I could then provide the evidence of our latest email that gave them the 14 day notice. 

I understand that if we choose the Tribunal route then once we go down that road we cannot withdraw (without the Tribunals permission), which is why I was wondering if the above was a better/quicker option. 

If they do not respond by the 28th and we assume that the contract does officially end on that date, do you have any advice on which might be the quicker/more successful route to getting the UN1 finally removed.

Thanks,
Emma



 

Emma - I can't really offer any more advice than already provided. There is a UN4 in play to cancel the Notice and the objection has delayed it's removal. The quickest way to securing removal is to prove that the protected interest is no longer a valid one and at this stage that is why the matter may well go to a Tribunal

Okay, thanks Adam (still amazed at you quick responses!)

Looks like we might be in for the lengthy Tribunal process then.

Emma

 

Hi Emma 

I am in exactly the same position as this unethical estate agency tries to blackmail me for a fee to remove their UN1. 

Can you confirm if you found a solution and how? 

For Land Registry - Ref P037SST
Can you please help me expedite this matter following my email of today 28 Feb? And can you please review the email which gives clarity that any contractual position with this agent is terminated and then let me know what the process is from here?

My understanding is that I don’t need to fill in a UN4 yet as the UN1 is not registered ? 

Your urgent assistance is appreciated. 

S I - your enquiry will be referred and responded to as appropriate. I can't add anything to that 'mix' on the forum so please wait for a response from the support team as appropriate

S I
I don't know if you will receive my response, but first and foremost I recommend you take all the advice you can from Adam because he knows his stuff and is always quick to respond.

I can provide you with a quick snapshot of our situation (which is still not yet resolved) which may or may not help you.

The UN1 against our property (applied for by the Estate Agent) would not have been officially registered until July this year due to the backlog, but I believe it would still have been relevant and the date of the application was also relevant.  You cannot ask for it to be removed (via a UN4) until it has been processed, so I asked for it to be expedited so that I could make that application. Adam assisted with this but if you need to ring Land Registry, do so first thing in the morning as you stand a greater chance of getting through - and they are very helpful.

Once expedited, the UN1 was registered and the Title updated, I sent my UN4 application to ask for it to be removed. It took a few days for them to receive it (consider putting a Land Registry alert on the property so you know when it has been received). Once they had received this UN4 (you receive notification from them either through an alert or otherwise) I asked for it be expedited (otherwise that too would have been left pending due to the backlog). This can be done online or by a phone call and I think it was expedited the same day as my request. 
Land Registry then processed the UN4 and sent the relevant notice to the third party (the Estate Agent).
Sadly, they objected to the removal claiming they had an Option to buy which was still in play because we were still in contract with them.
Whilst I dispute this, to remove any doubt, we sent the Estate Agent a 14 day notice to end the contract  as per their contract.  
I asked for my UN4 to be cancelled at this point. When the 14 days was up, I sent a second UN4 and went through the same process as above, this time with evidence that the contract was ended.
(As an aside, unfortunately Land Registry cancelled the wrong UN4 so I ended up having to send a third one). 
I am now just waiting for the response from the Estate Agent to Land Registry - they may well object again. 
If they do object again then I will have no choice but to go to Tribunal with the matter.
Good luck.
I would be very interested to know who your agent is because I have dealt with three other estate agents since and none of them use this particular tactic in their contracts.

Hi Emma ,

the agency is the same one as yours nationwide dev or national residential. They will also object to my objection clearly and I don’t think LR have any powers to decide the case even through the evidence may be clear that there’s no contractual position or legal ground for the agent anymore. They are just trying to blackmail. Is there any lawyers you’ve approached to possibly litigate?