Memorandums

rwilson


Joined: 14/04/2008
Posts: 87

Message Posted:
13/11/2008 17:29

I understand a memo is where someone takes the builder to court and is given rights over a property. Can anyone throw any detailed light on exactly what rights a memorandum give.



(1) How long before they expire and can they be automatically renewed.



(2) If a purchaser registers their contract, and a memorandum is later granted, does the memorandum get preference to the earlier registered contract.



I have been told by my solicitor that a registered contract can be made worthless by a later memorandum against the builder, perhaps for nothing related to that site. If so, no-ones property is safe until they have their deeds and it is a scandal.

Harvey1


Joined: 27/07/2008
Posts: 12

Message Posted:
13/11/2008 22:13

I have been told exactly the same by my lawyer and from what I understand they hold more weight than an injunction and do not have a time limit. The law has not been tested yet regarding our registering our contracts so we may have all rushed to pay our stamp duty and register our contracts for nothing.

rwilson


Joined: 14/04/2008
Posts: 87

Message Posted:
13/11/2008 22:18

Exactly!



Many people will be sitting happy that they have registered their contracts and are therefore protected.



Meanwhile the TRNC courts can disregard their contract and give the rights to their home to anyone who owes the builder money.



How unjust is that!

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
13/11/2008 22:20

'TRNC law is based on UK law' 'My arse!!

ChesterSue1


Joined: 02/11/2008
Posts: 67

Message Posted:
14/11/2008 04:22

rwilson,



"Meanwhile the TRNC courts can disregard their contract and give the rights to their home to anyone who owes the builder money."



Surely you mean anybody the Builder owes money to?



Sue

ChesterSue1


Joined: 02/11/2008
Posts: 67

Message Posted:
14/11/2008 04:22

rwilson,



Surely you mean who the builder owes money to.



Sue

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
14/11/2008 08:29

For my views on the subject please see http://trncvillaowners.phpbb3now.com/viewtopic.php?f=4&t=5003

ismet

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
14/11/2008 08:33

A memorandum is valid for only one year and it expires automatically. The idea is to get a court order for compulsory sale in the meantime. Hence if someone puts a memorandum on a property based on a court judgement and then if he sits tight and does nothing else, it will expire after one year.

ismet

Harvey1


Joined: 27/07/2008
Posts: 12

Message Posted:
14/11/2008 09:20

Ismet



How can you then stop a court order for compulsory sale if you are not a party to the case but have registered your contract?

rwilson


Joined: 14/04/2008
Posts: 87

Message Posted:
14/11/2008 10:28

Hi Sue



Yes, anyone the builder owes money to can go to the courts and get a memo on the building you have paid for. The memo holders rights take preference to yours even though you registered the contract.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
14/11/2008 12:25

Msg. 9

Harvey,

First of all I would go and speak to my advocate and ask him to intervene on your behalf. Personally I would go and speak to the manager of the relevant Land Registry Office and take it from there. If need be then you apply to court and ask to be a party to the proceedings as someone who has a valid interest in the matter. Its all laid down in the Civil Procedure Rules how to do it.



Msg. 10

Rwilson,

You stated "The memo holders rights take preference to yours even though you registered the contract." Can you back up this claim please? If it was so, it would make an absolute mockery of registration, just not on but as I state in my original evaluation, this is a new situation and the judges may not be aware of it, so it has to be argued out in court and I have no doubt that a memorandum levied on the property after registration has no priority. Indeed once you have your contract registered nobody should be able to have a memorandum on your "interest" i.e. if only

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
14/11/2008 12:28

i.e. if only say 5 people registered out of a total of say 40 houses, then a memorandum could possibly placed on the remaining 35/40th share and they should make a note on the memorandum accordingly, just in the same way that when you go and register your agreement, if there is already a mortgage on it they will make a note on your registration receipt.



As I stated many times, it is early days and I am sure the correct procedure will settle down eventually.

ismet

rwilson


Joined: 14/04/2008
Posts: 87

Message Posted:
14/11/2008 17:59

Ismet



As always, you talk a lot of good sense.



Perhaps solicitors give advice as they see it, but without saysing its just their opinion, not a confirmed point of law.



As for "asking to be a party to the proceedings as someone who has a valid interest in the matter" that sounds like a fantastic idea.



Can you please point me in the direction of where I can find the " Civil Procedure Rules"



thanks again for your wise head.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
14/11/2008 20:39

Msg. 13



Rwilson,

I do not wish to be too specific on your point because there are various avenues to be explored. In my view the best option is for your advocate to speak with the manager of the Land Registry Office and obtain his opinion about the best course of action. The manager may himself consult the president of the District Court or your advocate may do that and then decide on the exact course of action. In such situations where everything is not clearcut, what may be the best route in one district may not be so in another. Hence its best to discuss the problem locally before embarking on a particular route.

ismet