Buying & Selling - Information for Homeowners

• All houses on St Mary’s Island are subject to a Rentcharge Deed. The Rentcharge Deed places certain obligations on the house owner relating to the appearance and use of the house (see Restrictive Covenants|).
• The Rentcharge Deed also provides for the payment of an annual sum, called a rentcharge|. The rentcharge is similar to a maintenance charge and is paid to the ‘Rentcharge Owner’. In return for these payments, the Rentcharge Owner provides various services to St Mary’s Island.
• The Rentcharge Owner is in most circumstances Chatham Maritime Trust. All enquiries on any rentcharge should be made to the Trust| .
• When a house on St Mary’s Island is being sold, the Buyer has to enter into a new deed with the Trust, called a Deed of Covenant. The Buyer’s conveyancer prepares the Deed of Covenant, has it signed by the Buyer and delivers it to the Trust as part of the transaction together with the appropriate fee|.
• When the Trust receives the Deed of Covenant it checks that the rentcharge is paid up to date, and that there are no outstanding breaches of obligations on the part of the seller. Assuming all is in order the Trust will then issue a certificate, called a ‘Certificate of Compliance’.
• The Land Registry cannot register the Buyer’s title to the house without receiving the Certificate of Compliance. Similarly, the Seller is not released from the obligations under the original Rentcharge Deed (eg to pay the rentcharge) until the Buyer completes the new Deed of Covenant.  It is therefore vitally important to both Buyer and Seller that this part of the transaction is properly completed.
• These arrangements also apply where a sale is taking place between joint owners (for example if a couple owning the property are separating, and one is buying the other out). The buying partner must complete the Deed of Covenant, so that the other partner can be released from his/her obligation under the original Rentcharge Deed.
• Similar arrangements apply where a charge is against the house is being created, for example if a new mortgage is taken out. A Certificate of Compliance is again required, but in this case there is no need for a new Deed of Covenant, as the owner of the house remains unchanged.
• These arrangements apply to houses, not flats. 
• Your conveyancer will be able to advise you on these matters if you need more detail. When instructing your conveyancer, it is a good idea to draw their attention to this website and in particular to the section headed ‘Information for Conveyancers’|. That should help avoid delays and make your move proceed more smoothly.