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HMRC internal manual

Debt Management and Banking Manual

Ordinary Cause: Discharging an inhibition - action to take where defender offers payment for sums outwith the ordinary cause decree to be made from the sale proceeds

If a defender makes such an offer to pay, you should obtain a mandate from him stating that payment will be made at the settlement date.

This mandate should be lodged with the solicitor or agent handling the sale.

You must also include in the mandate any statutory interest due up to the date of settlement. On no account however should you include any tax etc not yet due as this could jeopardise the validity of the mandate.

When, in response to this you receive back the completed mandate from the defender’s solicitor/agent, you must neither promise or offer to discharge the inhibition on the strength of it. The reason for this is that, before completion of the sale, the defender may change his solicitor or agent, thus invalidating the mandate.

In these circumstances you must always advise the defender that the discharge will be issued once the payment is made.