1. Breaking the purchase rules is covered by Section 70
2. Section 70 applies to making repeated, improper or illegal representations
3. The relevant regulation is introduced by means of an Ordinance at the same time as the Royal Bill
4. It requires sellers to carry out a property search to check that the property is advertised in accordance with the published rules
5. The details that a seller needs to know:
a. The fundamental rules
b. The provisions
c. the legal wording and enunciations
6. The seller must then carry out a suitable documentation for the disclosure of such detail to the Department for Communities and Local Government
7. Only then is the actual disclosure made to the DCLG
8. If the seller is unduly or obviously optimistic in the assessment of the underlying property value or these costs, the seller should immediately commission an independent valuation and provide it to the DCLG with an estimated final price.
9. Once the necessary documentation is provided, the Sellers check with the approved source, in this case the DCLG, to ensure the fact check has been carried out and to obtain suitable remuneration for a qualified and experienced valuer.
When the transaction completes the affected purchaser shall inform the Seller of the value of the individual assets that have been purchased:
a.the sum provided by the Sellers for the Purchase Price
b.the aggregate amount of the resale value, if any, provided by the Sellers for the Purchase Price
c.the market value of any particular asset in any given condition, including operating costs, and not provided by the Sellers, provided by the Sellers in the Purchase Price
a.The Sellers fixed their price up to 5% below the values provided by the Offeror
b.The Sellers have been required by the Secretary of State to provide expenses if the Offeror purchased an asset in breach of the terms of the Purchase Agreement.
11. The Sale Agreement is an essential document to consider. The Sellers also hold a Sale agreement that a Seller may use. By paragraph 24 of the Sale Agreement it is agreed that any potential Buyer can contractually require a Seller to produce a Sale Agreement on the basis that such a Seller confirms whether or not their Offer is the highest price for the asset being sold, however it is not a breach of the Sale Agreement or of the purchase terms to disclose, unless the Buyer can prove that a Sale Agreement is not given by a Seller.
12. The Seller may contact the Buyer concerning your decision to exit the transaction by email or telephone:
a.from a seller (if a Seller of multiple properties and where no Sellers)
b.in person at the Sellers office in accordance with Seller
‘to Name’, If Sellers can produce an Seller ‘to Name’
14. The Sellers retain a reasonable opportunity to appeal the Secretary of State’s decision to withhold revenue for good cause or for any good reason.
15. On any appeal by the Sellers to the Royal Courts of Justice the Sellers are subject to a rigorous information requirement and the claimant will be entitled to find that the Sellers failed to comply with such.
16. A final disclosure notice and Notice of intended appeal must be received by the Secretary of State 60 days after the Approval Order was made (and where an application has been made to vary or to accept an application to rescind the approval order in respect of a property where the Secretary of State has accepted an application to vary the Approval Order and refuses an application to rescind the approval order, then the property must be completed within six months from the date of the Royal Act).
17. In the immediate future we intend to publish draft Standard Codification for Responsible House Sale management in due course to ensure that the market understands the requirement and provides support to practitioners in both guidance and best practice.