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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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Hello, I am presently in the process of buying a house (needs

Resolved Question:

Hello,
I am presently in the process of buying a house (needs gutting and full refurb, good location though). We settled on a price of 152.000. It then came to light that the property was not registered at the land registery, deeds were lost. Cut a long story short, it has now been given a possessory title. The vendor is waiting for me to give a lower offer, my question is, what % is reasonable?
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello, welcome to the website. My name isXXXXX can assist you with this.

Customer:

good evening, thank you,

tdlawyer :

As you know, this is really a matter of negotiation, but a possessory title is worth less than an absolute title. If the possession period is quite short, then I would look for a decent sized discount, probably around 15% or so, but if the posession period is quite high, such that the title can be upgraded to absolute easily, then I would expect it to be a lot less, perhaps around 5 - 8% or so.

Customer:

The vendor only registered the property with land registry last week and received defect title

Customer:

been doing a little research on the street in mention. the property i want to buy is number 12 (third one down), it is in all fairness a good location as well

Customer:

17 Springbank Crescent was put on the market at 172,400 end of 2012, the price was then dropped to 164,950 in March 2013 and sold in October for 159,000. 7.6% discount. The title deeds were absolute, and the house was in relatively good condition with the dining room knocked through into the kitchen which was quite modern, gardens were big (on opposite side of number 12 were plots of land are larger). No structural defects to building.


5 Springbank Crescent was put on the market in 2012 at 175,000, then the price was reduced to 173,500 in March 2013 and it sold in August 2013 for 157,000. 10.2% discount. The title deeds were absolute. The house was modern inside (just needed some decorating), there was also a conservatory which was used as a second lounge. No structural defects to building.


3 Springbank Crescent put on market at 174.000, didn't sell, was taken off the market after 18 months


12 Springbank Crescent needs a full refurb, internally) has structural issues (kitchen extension is falling away from main structure, (all house needs brick joints cutting out and re-pointing) cracking visible over head of window to dining room, has a small garden and possessory title. Initial asking price was 159,950 27 September 2013. Agreed sale 7 October 152.000 (before knowledge of title defect) 4.9% discount.

tdlawyer :

So those discounts are nothng to do with title.

tdlawyer :

There is no real rule of thumb with this. It's all about perceptions, perception of risk and ability to resell, your intention with regards XXXXX XXXXX property and so on.

Customer:

I realize this,

Customer:

i just dont want to be unreasonable, so if i went back to the original asking price of 159,950, and asked for a 12% discount, i would have thought this is fair, and she can always come back with a counter offer,

tdlawyer :

Yes, I wouldn't disagree with that in fairness. It's just so difficult to give any percentage, but you can use other valuation evidence as you've got here, then add some additional amount on top to reflect the title issue.

Customer:

my main fear, and that is why i am consulting with you is: i want the house, but i do not want her to see my 12% as unreasonable, and cause her to turn round and tell me f...k off. Although, it is not easy to sell a house like this, and i am a cash buyer too. Mortgage companies wont entertain the property unless it has been registered at land registry for at least six months and has a good indemnity policy in place.

tdlawyer :

Yes, well you might think about how you put it to the seller - maybe something like, "I've consulted with estate agents (or valuers) and upon reflection of what they have said, I understand a proper discount to the sale figure due to the title issues is ... %"

tdlawyer :

You can always resile from that quite easily. Seller could still say no, but at that point, you could always go back and offer an increased amount.

Customer:

Ok, thank you. May I quote you or your organization in my offer?

tdlawyer :

Entirely up to you - it's all just a negotiation and whatever helps you get to your figure is reasonable, so long as it's lawful etc!

tdlawyer :

You should speak with your solicitor too and get an idea of the strength of the title issues, this should help you appreciate the appropriate discount level tool.

tdlawyer :

too.

Customer:

she has no clue

tdlawyer :

Oh! That's unhelpful!

tdlawyer :

Maybe your valuation agent?

Customer:

my I have your name and organization to quote you? is this possible?

tdlawyer :

We're not allowed to give out personal information on here, this is only an information site, and isn't intended to be anything else.

Customer:

valuation agent has said about 10-15%, but not taking into considateration my emotional attachment to property

tdlawyer :

Nobody over the internet can have first hand knowledge of your issues, and any comments have to be worth less than somebody with first hand knowledge of the property, the comparators etc ...

Customer:

ok, thank you once again,

tdlawyer :

Thank you. Is there anything else I can answer for you about this?

Customer:

No, I think I have a pretty good idea of which way to go and how to go about it, thank you,,, have a good evening,,,,,

tdlawyer :

You too! Thank you!

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