Do I need to care about standard charge terms?https://jhwbizlaw.com/wp-content/themes/movedo/images/empty/thumbnail.jpg150150Jiang Hong Wilkin Business LawJiang Hong Wilkin Business Law//jhwbizlaw.com/wp-content/uploads/2020/07/jhw-logo.png
A mortgage transaction has several important documents. The first is the commitment letter, it is like a term sheet, setting out all the main terms of the mortgage, including the principal amount, interest rate, maturity date, etc. Parties must clearly understand each of the terms of the commitment letter. The second document is the charge, the formal mortgage document which will be registered on title at the land registry office. The terms of the charge should be carefully examined, to see if they match the terms in the commitment letter. If the charge contains an error, it is not easy to correct it, as it will require the lender approval and another registration at the land registry office. The third document is often ignored, which is the standard charge terms. Lenders register their often-used standard mortgage/charge terms with the land registry office with an assigned number. In mortgage transactions only the number is mentioned and the contents of the standard charge terms do not need to be repeated. But the standard charge terms referred by number in your charge are also part of your mortgage. Different standard charge terms have different requirements. Many purchasers/borrowers do not know what is included in their standard charge terms, so do not have a clear understanding of what their mortgage obligations are.
Are fridge, stove, washer/driver part of the property sale?https://jhwbizlaw.com/wp-content/themes/movedo/images/empty/thumbnail.jpg150150Jiang Hong Wilkin Business LawJiang Hong Wilkin Business Law//jhwbizlaw.com/wp-content/uploads/2020/07/jhw-logo.png
In a real estate transaction the offer is extremely important. The buyer and seller must state clearly in the officer what is sold with the property and what is excluded. If you do not state in the offer, then the law requires that all fixtures are sold with the property, and all chattel is excluded from the sale. Fixtures are considered part of the property, and cannot be removed without damaging the property. For example, wall-to-wall carpet, floor boards and recessed ceiling light fixtures are all considered fixtures. Chattel refers to items you can remove without damaging the property. Fridge, stove/oven, washer and driver are all chattel. If the offer does not say these chattel items are included in the sale, then the seller is entitled to remove all of them. The buyer will be greatly disappointed when the buyer realizes that the fridge, stover, washer/driver are all gone. So if the buyer wants certain items of chattel to remain after closing, the offer must expressly state so. Similarly, if a seller expects to remove certain fixtures, it must be cleared set out in the offer; otherwise, the seller is not allowed to take any fixture with him.