Cant sell my hotel

sukysue

Aw Good luck Slowdog I have been wondering about you and yours glad your wife is ok and yes you are right to put your health first.

chickmug

slowdog wrote: »

it is a fair bet that we will go bust this year. especially as we have just had a £6000 termination bill from RTA Business Sales. We cant afford it, so they are not getting it. However, we would like to fight it. If anyone can offer advice on that matter (in private preferably) it would be appreciated.

I really am so sorry to hear of the latest news and do hope you get through it but you need to keep very strong and focused especially with the RTA (RAT as we used to call them) bill.

I am sure you will have tried everything, whether in connection with trying to sell, or trying to improve the levels of business, and I would have thought by now the list of ideas, that would realistically make a real difference, have been exhausted. After reading all of this thread it does seem to be case of you have given it your best shot with every conceivable idea.

The one point that has brought me out of my hibernation with this forum (last post three months ago) is the RTA commission invoice on which I do have some relevant experience. So can I need to ask for more details: -

You say a termination invoice - is that called that because you actually cancelled the agreement? So is this what sparked them into sending you this invoice or did they send it as they may have found out you had appointed other agent/s?

Have you asked a solicitor to advise you in respect of the agreement and invoice? Not a conveyancing solicitor unlikely they will have a clue but it needs to be more a contract law solicitor. You may need to find a few bob to consult one and it may prove worthwhile. I used to use one now and again but his fees now are £175 per hour!!! Also bear in mind that it is a ‘business - to - business agreement as many people I came across tried to take action with various bodies that are there for public - to - business agreements.

Yes I have known many cases of RTA sending out invoices. That is what their business model seems to be. Value well over the realistic market figure, charge a very high up front fee and then patiently wait for their chance to go in for the real money as they are with you. They always try this and always chase extremely vigorously and whilst not sending in the ‘chaps with baseball bats’ they certainly do apply unrelenting pressure to get the money.

Those who have been sent these invoice can be separated into:

Those who are frightened and pay up without it getting to court - too many did this, without a fight, thus making RTA realise this tactic was good for them getting in the cash.

Those who come to a settlement, with RTA, before it gets to court but often only just before the date of the court case. Settlements have varied but are usually substantially lower than the first invoice. RTA know it may get thrown out at court so are grateful for this lower figure but you need to get their confirmation they regard it as ‘full and final’ settlement One chap was advised by his solicitor and who gave the chap a letter to send with a fraction of the requested amount and saying that no more would be sent “See them in court” type of defiance. He never heard from RTA again.

Those who decide to fight it and I have known cases where good solicitors have studied the agreement and come to the conclusion it will probably be found unfair, at the court, but can’t give cast iron guarantees as they know the fickleness of that Judge on that day. I have known cases where a separate barrister has been consulted who has advised it will be slung out of court but, like the solicitor, has also said there could always be an exception to this.

So in your shoes what would I do? A very tough one as I tend to be a very aggressive fighter for my principles and will do absolutely everything in my power to not pay this money. But as a start I feel the least you should do is consult a contract law solicitor. The solicitor may be able to unearth cases that have reached court and therefore know of which way decisions have been going.

Let us know how you get on.

slowdog

hi chick, and thanks

first of all, the wife is at the solicitors as we speak, so we will see what happens there.

THEY called for the termination, due to the grounds that continuing to advertise the property was costing them money. now, the interesting thing about this is that no initial fee was paid, therefor, it has cost them money from day one anyway. thats assuming that other than place the hotel on their website, they advertised us in the first place. from other accounts i have read over the last 24 hours, im guessing not.

to counter-act this 0 sign-up fee there was a written addition claiming termination would be £5000 +vat. the contract has a section stating that termination could be made by us or them

the contract was 12 months. when we signed, they knew full well that we were already with other agencies already, and made no reference to the fact that they expected sole rights, or what that meant.

either way, we have both decided that our position is basically (if we are stuck with a contract that cannot be contested) that they take a running jump, or accept £10 a week. you cant get blood out of a stone, and we are one hell of a stone. so its like it or lump it. we know full well that if they push the matter hard enough, then we are going to be in a very scary predicament.

will be interesting to see what the solicitor says, if anything.

GDB2222

Googling for "rta business complaints" produces an awful lot of links.

Personally, in your position, I would tell them that you are thinking of filing for bankruptcy and offer them say £250 in full and final settlement. Otherwise, they can waste thousands suing someone without any money, and it's their call. Tell them that you'll spend your last few pennies defending their claim.

My view is that, if you are really inevitably going bust, the sooner the better, as you lose all the anxiety (and transfer it back to your creditors!) and you get to start your new debt-free life sooner. An IVA is only worth bothering with if you are 100% sure you can meet the terms. Otherwise, you slave on for years and eventually end up bankrupt anyway. People forget that bankruptcy gives you protection from your creditors, and it's for your benefit, not theirs. Sorry to be so pessimistic.

slowdog

my wife has just phoned and all the solicitors agree that the hand-written £5000 on the contract looks like it has had a 0 added after the event.

puddy

hello, i was reading this thread last night and felt for you.

i dont really have a business mind or actual knowledge about this subject but i do love my holidays and minibreaks, so was reading this with interest.

i was thinking about the language school idea, but you said that different permissions would be needed for that back in the thread?

is there any mileage in advertising the hotel abroad for foreign students to stay whilst they 'experience' blackpool, germans, dutch etc, people that are more like the English, then it wouldnt be a language school as such, but simply accommodation for a big group of students to come? i assume that school children in germany do trips abroad to England, so why couldnt they come to blackpool instead of london or the south.

again, cookery school courses, i assume you have a large kitchen, someone who is a cookery lecturer, chef etc, may be interested in teaching large groups over 3 days or so

just some ideas that may keep you going until you actually sell, good luck

poppysarah

My only idea would be to get the train to a town near Blackpool and find a housing estate and deliver leaflets offering them a discount for booking a short break now.
Then ring the local media and press and do a story about how you're offering a discount for people in that town to help people relax through the credit crunch!

GDB2222

slowdog wrote: »

my wife has just phoned and all the solicitors agree that the hand-written £5000 on the contract looks like it has had a 0 added after the event.

That's fraud, then, which is a matter for the Police. Do you have a copy of what you signed still?

slowdog

yes, but it looks like he added a zero without us noticing, and after my wife signed the contract. as the solicitor pointed out, everywhere else the guy has written zeros, they are quite spaced out. in the £5000 one, they are very bunched together

GDB2222

slowdog wrote: »

yes, but it looks like he added a zero without us noticing, and after my wife signed the contract. as the solicitor pointed out, everywhere else the guy has written zeros, they are quite spaced out. in the £5000 one, they are very bunched together

How much did you think you were in for? £500 or £5000?