Solicitor Sales Information
Thank you for engaging with C~urb Factoring regarding the sale of one of our factored properties. The details below will assist with any enquiry you have.
What information does Curb Factoring require to process the sale?
We will also request and record:
- Sale / transfer of ownership date
- Forwarding address for the seller (for final invoice etc.)
- Details of the seller’s solicitors
- New owner details
Please email factoredownership@curb.scot with these details.
When do we need notified of a property sale?
At least 2 weeks before the date of sale. Otherwise, there may be additional charges to cover the short notice period.
What happens if the sale date changes?
Please advise us as soon as possible. This may affect the sales information we provide and therefore need revised. We will also need to note this for all other timeframes required to ensure the sale process is not held up and we meet the Code of Conduct requirements.
What information would C~urb factoring normally provide regarding the sale of the property?
C~urb Factoring has a duty to liaise with the seller’s solicitor. We are normally requested to make the solicitor aware of the following:
• any debt on the seller’s account and if a retention figure is to be held by the solicitor to settle any outstanding balance
• any Notice of Potential Liability (NOPL) on the property
• any major works planned and paid for by the seller
• any identified forthcoming major works that require funding by the seller or buyer
• the presence of a float and/or a development cyclical maintenance fund
• block insurance schedules
• an estimate of the annual factoring costs.
If requested by the seller’s solicitor we will provide, where possible, copies of any certificates, e.g. building warrants, Local Authority Certificates, warranties for any major work carried out by contractors etc. To assist our staff in the discharge of these duties, owners are required to provide a minimum of 14 days’ notice to Curb Factoring prior to the settlement date of the sale.
It is essential for the seller to contact us through their solicitor. We are happy to provide information to owners on request, however, to prevent duplication of communication we would request your solicitor is the main contact.
How and when will the sale information be provided?
We will email the details requested at the latest 5 days before the date of sale. We will endeavour to do this before then, but it is dependent on the notification of proposed sale. The information is generated as a standard letter and email, however, any specific issues such as level of debt will be highlighted in this information.
Please ensure that this information is checked as it may contain details of registering an NOPL to protect the debt if it is considered necessary.
What happens if there is a risk of an NOPL being registered?
Where the retention fee is assessed as substantial, we will consider registering an NOPL. We will advise the selling owner’s solicitor via our sales letter and request confirmation that the retention fee will be paid as a matter of urgency or at point of sale.
The owner may wish to pay this estimated retention fee directly and this will show on their final invoice. Payment methods can be found on our website or https://linkhousing.org.uk/make-a-payment. The retention fee is an estimate, and the final invoice will remain due.
Where there is no agreement to pay the estimated retention fee, we will raise an NOPL which will cost around £200, and charges will be applied to the selling owner’s account. This may affect the sale and the incoming owner as the responsibility for the debt will pass to them.
There is an NOPL on the property how is this removed?
An owner’s solicitor would arrange payment of the full final invoice. A discharge form will need to be issued to Curb Factoring with payment of the discharge fee. When this is received, we will arrange for the discharge to be authorised and issued back to the solicitor to process.
How to confirm date of sale?
As part of the sales process, we would require the date of sale to be confirmed. This can be done via factoredownership@curb.scot. Once this is received, we will end the owners account and work on their final invoice. We cannot end an owner’s account without this confirmation. Title Deeds are not often updated for some time and we do not want to delay the process.
Where confirmation of the date of sale is not provided within 4 weeks of the advised date, we will carry out a Title Deed check. There will be a charge for carrying out these checks.
What happens to the account when the sale concludes?
Once the date of sale is confirmed by the selling solicitor, all costs, fees, insurance premiums etc that apply, up to the date of the sale, will be charged to the seller. Some costs are straightforward such as a routine repair performed before the sale. In this case, the seller will be charged their normal share of the full amount. For on-going costs, such as monthly cleaning or landscaping charges, insurance premiums and management fees, we’ll work out the apportioned charge depending on the date of sale.
How are major works accounted for?
Where a payment is required to fund a forthcoming major works project (for example a development wide painting scheme), we will pass this information to the seller’s solicitor. The party responsible for this payment (seller or buyer) will be agreed between seller / buyer / solicitors in advance of the sale. This will be covered in the requirements list defined in above.
We would normally suggest that the date work is intimated dictates who is responsible for the cost of the work. Where possible we will provide details of identified future work, but would ask payment is agreed between seller and purchaser as part of the sale. We do not have the facility to manage payments from selling owners for identified future work.
When will we be able to generate the final invoice?
After selling the property, we will issue a final invoice, the timing of which is dictated by such factors as your sale date, the method / frequency of your invoices, and outstanding contractor invoices. We aim to provide your final invoice within 3 months of confirmation of sale, however it may be dependent on external factors out with our control.
What happens to any float paid which Curb Factoring holds?
Any float amount is included as a credit on the seller’s final invoice. The final invoice may also include some on-going charges (utility bills etc). The final invoice will reflect the net amount owed or due.
Cyclical maintenance fund will this be refunded?
No. When a homeowner sells the property, the amount paid into the cyclical maintenance fund is not returned and is retained against the property in a separate bank account. It is often considered beneficial for a development to have a cyclical maintenance fund to support major works and it is advised that the presence of these funds should be detailed as an asset in the sale of the property.
What fees are charged by Curb Factoring to process this sale?
A final account fee is charged to the selling owner to cover the significant internal administration requirements involved in the sales process. This charge will appear on the invoice following the sale. The property specific schedule and our sales letter advise of the current amount for our sales fee. We reserve the right to charge a higher amount if:
• the sales process is protracted or involves significant additional work. (Cost dependent on volume of additional resource required).
• less than 14 days’ notification of sale is provided. (A Late Notification Penalty of £60 including VAT will be applied)