SDLTM82740 - Compliance: Concluding an enquiry

Contract settlements: Expected offer: Means - The purchaser’s house

In realisation of assets a compliance caseworker may in extreme cases have to consider the value of the purchaser’ house. This is a sensitive area and it must be approached with tact.

The compliance caseworker should first consider that a purchaser may be unable to make a cash offer or obtain a loan, but be willing and able to enter into an instalment arrangement over a reasonable time. In which case reasonable long term commitments (life assurance premiums and personal pension contributions) entered into before the enquiry began, can be continued if a standard instalment offer is made

If the purchaser still cannot meet settlement the compliance caseworker should

• point out they are not an expert in collection matters
• advise that in the event of bankruptcy, the trustee in bankruptcy may obtain possession and sell the house
• mention even if there is little equity in the residence, moving to a less expensive house with a smaller mortgage will reduce the repayments. At the very least this may allow an instalment offer to be funded
• bear in mind that if the purchaser is married the spouse is almost certain to have an interest in the house even if they are not named in the deeds. Alternatively the house may be in the name of the spouse even if paid for by the purchaser