Q Question: I am in the progress of buying a property from a vendor who has solvency issues and a lot of outstanding debts. Is there any extra risk I need to evaluate prior to completion?
A Answer: Yes. When a property is subject to a debt registered in the Land registry (such as a mortgage or an court executive payment order), any new purchaser takes over ownership of the property as well as the negative burdens against it at the signing of the deed. This means that, should the seller not pay any outstanding debts prior to the purchaser’s legal takeover of the property, the debt could be enforced against the new owner.
Copyright of Studio Legale Metta – Bari (Italy).