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We purchased a freehold piece of land which has 14 apartments built on it but have just found out that the s106 contributions were not paid.
The s106 obligations were entered into by the company and the mortgagee. The obligations stated that once 50% of the dwellings were occupied the contributions would be due, the 50% came into effect in December 2010 is there a timescale in which the council must seek payment?
the agreement states that the undertaking will bind the owner the mortgagee and their successors in title.
What I cant understand is that within a month of me purchasing this land the council are straight onto me for payment but why have they not chased the original owner and mortgagee since dec 2010 to date
I too was thinking along these lines but then unearthed this meaning online
Successor in title
A person who takes over the rights of another. Â Rights can be passed by inheritance, gift or sale, and may be passed to an individual, partnership or corporation.
What I was trying to understand is that surely within the time period of dec 2010 the council would of looked to the original owner and the mortgagee for payment if not or if so how long do they have to make demands for payment?
The total amount payable is £75,857 so it is not money I have spare to look at paying them
A clause states that the owner covenants to inform the borough council by notice in writing addressed as legal services section when one half of the dwellings identified in this undertaking have been occupied as the point by which a payment shall be made or an obligation fulfilled in clause 3.1
And also that the mortgagee shall be liable only for the breach of the provisions hereof during such period as it is a mortgagee in possession of the Owners site and shall not be liable for any breach of the provisions hereof after it has parted with or released its interest in the owners site.
Ok so if that avenue fails can we look to compensation from the solicitor for not carrying out a local land charges search?