Overseas Bankruptcy Searches - Deed of Gift of Property
The CLC Handbook and CML Handbooks set out the circumstances where conveyancers must undertake bankruptcy searches for the lender. This includes bankruptcy searches against all parties to any deed of gift as well, as the borrowers, and ensuring that the results are free from any entries of bankruptcy.
Where one of the parties to the property purchase (including gifters) lives abroad (or has previously lived abroad), an overseas bankruptcy search must be conducted in their country of residence.
If a person is being gifted a property or any part of the purchase price, by someone else (ie a parent) a bankruptcy search must therefore be undertaken against the parents and the child./ person receivng the gift.
The reason the bankruptcy search is required is because a gift made by a bankrupt to a ‘connected party’ (for example a spouse, child, grandchild, parent etc) can be construed as being made in order to avoid creditors can be set aside by a trustee in bankruptcy.
The Handbooks require the bankruptcy searches to be carried out against all parties to the Deed of Gift so that the lender is protected as at the completion date. (Given the relatively low cost involved in obtaining a bankruptcy search, it is arguable that bankruptcy searches should be carried out in all property purchasers regardless of whether there is a lender.)
If a gifter / borrower in a property purchase transaction currently resides or has previously resided abroad, an overseas bankruptcy search must be undertaken in the country where they reside (or previously resided) to ensure that they are not subject to similar (or more onerous) rules in their country of residence which may affect the property transaction or give rise to any risk to the lender.
Each country processes and records bankruptcy in different ways so it can be difficult to know how to ascertain an individual’s bankruptcy status in a foreign country. Fortunately, we can help.
If you need to undertake an overseas bankruptcy search in relation to a purchaser, borrower or gifter who resides or has previously resided abroad, we have the knowledge and expertise to competently conduct the required international bankruptcy searches for conveyancers in whichever country you require.
We regularly assist conveyancers in satisfying their professional obligations by undertaking the necessary overseas bankruptcy search and providing a report of the search results for your file.
For more information, to obtain a quote for an overseas bankruptcy search or order a search please feel free to contact our experienced and helpful team by email at info@internationalbankruptcysearches.com or call us on 01244 478 201.
We look forward to hearing from you!