This important legal document also known as a Deed of Consent, Deed of Postponement and Consent to Mortgage or an Occupiers Waiver form is a legal document that may need to be drawn up by a legal professional during the process of making arrangements for a mortgage.This important document shows all of the named individuals aged 18 and over who will be living in that property and who are not the legal owners. Some mortgage lenders will require the document to be signed to ensure that they vacate the property if repossession of the property occurs.
This is because failure to sign the document can cause problems for the mortgage lender in the event that the buyer is not able to keep up with mortgage payments. By signing this document, the signatories are essentially giving up the right to occupy the property, therefore relinquishing any beneficial interest in the property and making a claim to the right of occupation.
Beneficial interest, in this instance, refers to any individual who enjoys the benefits of living at the property or the income generated from the property.
Obtaining advice for the occupier
When obtaining advice on signing an occupier’s document, the individual signatory will need to obtain advice from a practising solicitor, licensed conveyor or a fellow of the institute of legal executives. The occupier cannot use the same solicitor instructed for the purchase transaction and is advised to be sure they are aware of their options and potential implications. The document will need to be witnessed by a non-family member adult over the age of 18.
What if an individual refuses to sign
If an individual refuses to sign an occupier’s consent form, a mortgage lender may refuse to proceed.
Occupier’s Consent Form Legal Advice
As individuals signing such a form are giving up their right to occupy a property, lenders request that they seek legal advice to ensure that they cannot allege at a future date that their signature on the occupier consent form was given unwittingly, under pressure or by duress and that they fully comprehend the implications of signing the document. If an individual required to seek legal advice and/or sign the form fails to do so, the lender may subsequently refuse to proceed with the mortgage/loan necessary to purchase the property.
Getting Independent Legal Advice
Firms with suitable experience in conveyancing, mortgages and surveys, together with the Solicitors Regulation Authority advise that the occupier in question, who in the majority of cases will be a spouse or child over the age of 18, may not be aware of the rights they are waiving, which could render them homeless. This is why independent legal advice is required in conjunction with the consent. For any additional advice or information, specialists such as Sam Conveyancing can be contacted for advice on occupier consent and other key lender requirements.
It should be noted that the above is merely a very brief introduction to the topic and should, therefore, not be considered to be legal advice. The implications of signing an occupier’s consent form are wide-ranging, making it essential to get in touch with a solicitor to ensure all parties fully understand all aspects explained in detail before signing the form.