Extra charges from solicitor - is this legal?

cab_bristol

I'm a posting newbie so apologies if I've put this in the wrong place. I'm hoping someone out there can help me.

I sold my old house and bought a new one, with the sale and purchase completing in November 2007. The solicitor (actually I think they were just a conveyancer, but let's call them a solicitor for arguments sake) who dealt with the sale and purchase sent me their invoices and completion statements on completion in November 07 (as you would expect) and I think a sum of money was left over (as planned) which of course we paid into the bank. Now, 8 months later, the solicitor has written to me to say that following an audit of their files, they have discovered that some search fees were not included in their invoice, so they should have charged me £155 more, so can I please send them a cheque for £155! Eight months after completion!!! I want to write to them to say that in my opinion, the amounts charged and paid at the time of completion were in full and final settlement, and it is not fair, reasonable or proper for them to ask me for this extra money now, especially as it's so long after the transaction completed. But what grounds do I really have to argue with them against this extra payment?

rugbygirl27

cab_bristol wrote: »

I'm a posting newbie so apologies if I've put this in the wrong place. I'm hoping someone out there can help me.

I sold my old house and bought a new one, with the sale and purchase completing in November 2007. The solicitor (actually I think they were just a conveyancer, but let's call them a solicitor for arguments sake) who dealt with the sale and purchase sent me their invoices and completion statements on completion in November 07 (as you would expect) and I think a sum of money was left over (as planned) which of course we paid into the bank. Now, 8 months later, the solicitor has written to me to say that following an audit of their files, they have discovered that some search fees were not included in their invoice, so they should have charged me £155 more, so can I please send them a cheque for £155! Eight months after completion!!! I want to write to them to say that in my opinion, the amounts charged and paid at the time of completion were in full and final settlement, and it is not fair, reasonable or proper for them to ask me for this extra money now, especially as it's so long after the transaction completed. But what grounds do I really have to argue with them against this extra payment?

I don't know where you stand legally on this but I would certainly write to them telling them where to stick it!! It is their fault that they didn't charge you the right amount and it should be up to them to clear up the problem. If a shop undercharged you you wouldn't expect them to come back to you 8 months later demanding the difference!!

silvercar

The general rule is that if you owe the money you should pay, but if you could reasonably have assumed that all bills were settled and the money has been spent, you can argue for a repayment plan over time.

I would argue that this is their mistake and you weren't expecting a further bill. If they don't agree then offer £30 a month over the next 6 months.

tbs624

Welcome to MSE cab bristol.

Much may depend on the wording of the final letters you received at the time of the sale & purchase. If they used the term in full and final settlement they could struggle on this one, although legitimate debts can be pursued for several years.

I would ask for a full statement of account from them and, as Silvercar says, you should maybe offer payment by instalments if you agree that the costs were legitimately incurred on your behalf. If they are solicitors ( and it is best to always know who or what you employto do any work on your behalf?) then there are strict accounting rules that they have to comply with: SARs or Solicitors’ Accounts Rules. If you feel that these rules may have been breached then you may wish to contact the Law Society.

geri1965_2

I would guess that they are entitled to recover them, since they are disbursements rather than their own fees.

Captain_Mainwaring_2

silvercar wrote: »

The general rule is that if you owe the money you should pay, but if you could reasonably have assumed that all bills were settled and the money has been spent, you can argue for a repayment plan over time.

I would argue that this is their mistake and you weren't expecting a further bill. If they don't agree then offer £30 a month over the next 6 months.

Some parts of this site are actively dedicated to doing just the opposite.

I'd offer £25.83 a month personally.

clutton_2

it is astonishing how often this happens - ask for a full itemised statement before agreeing to anything at all - then come back here

Debt_Free_Chick

geri1965 wrote: »

I would guess that they are entitled to recover them, since they are disbursements rather than their own fees.

This is my understanding.

Search fees are charged by the local authority. Your solicitor "lends" you the money by paying the fee and then you repay the solicitor.

For this reason, the "full & final settlement" argument might not work. You have settled the solicitor's fees in full, but the search fee is the Local Authority's fee.

Secondly, it could be argued that you could see that this search fee had been omitted from the final statement (assuming the disbursements were itemised) therefore you should "reasonably have known" that it had not been paid and was, therefore, outstanding.

By all means argue your case, but bear in mind these two points.

mumoftwins

For the past several years each solicitor/conveyancer I have come across through work has asked for the search fees up front and will not apply for searches until they have received your money.

Were you asked for any monies up front? If so check what you were paying for as you may have already paid for them and it could be their error!

cab_bristol

Thanks for the replies so far. I've just checked back to the completion statements and itemised invoices that we received at the time, and it does look reasonable that there might be some more search fees that were not stated on there, as the only search fee itemised was a small mining search fee. I always scrutinise anything financial but in this instance, as I received the statement on moving day, I was obviously too busy with other things to spot any discrepancies. I did pay £295 up front for search fees, and this amount was deducted from the money I owed on completion. On the letter enclosed with the completion statement re our property purchase, it does say "we enclose our final completion statement". So I think I will ask for an itemisation of the 'extra' fees and argue that they had said it was their FINAL completion statement, so I should not reasonably expect to have to pay anything else. And we'll see where that gets me! By the way they are conveyancers and not solicitors, but I believe their terms and conditions still say they are regulated by the Law Society.

lincroft1710

Many years ago had a dispute with solicitor re bill for conveyancing - lot more than estimate. Did immediately pay figure midway between two and eventually matter settled amicably, with them offering to reduce final bill - again paid promptly. However when came to sell house a few months later new solicitor informed me that during time of dispute, old solicior had put a charge on house which was removed when dispute settled. So beware if you have dispute with your conveyancer/solicitor.