Help! Can i take legal action against my estate agents?

Bootsy

Hello,

I wonder if anyone could let me know whether its worth discussing the following matter with some solicitors....

In 2008 i was looking to buy my first property, i found a nice apartment advertised by a local agent. After a viewing i found out the valuations were too high for my budget. After a few weeks, the agent emailed me with an attractive proposal stating the developer would offer me an interest free amount of £35,000 if i bought the property which could be repaid at the end of the 5 year agreement OR at the purchase price before the 5 years if i decided that i needed to sell. The key part of the agreement was that the owner would buy back the property before the 5 years if i needed it. This was the main reason why i decided to buy the property as it was advertised as a WIN/WIN situation.

I have spoken to the developer and he is stating that he is only willing to purchase the property back at the price i paid at the end of the 5 years and not now before the 5 years. Initially this morning he said he was not going to buy back the property at all and eas not aware of an agreement.

I am concerned that the agents have misled me and deliberately persuaded me into this purchase but there may be no legal document to back the agreement as i was told and confirmed in emails and letters signed by the agents. I do have copies of all correspondence from the agents confirming the agreement.

getmore4less

What was in the actual purchase docs that your solicitor drew up?

JQ.

Presumably you signed a legally binding contract with the developer to this effect that was checked by your solicitor. It will be clearly stated in the document when and for how much the developer buys back the property.

If you have just relied on what an EA told you, then I think you may be in trouble. What did your solicitor say at the time when you completed the purchase? You need to see a different solicitor as you may have a claim about your first one if they did not advise you correctly. I'm sure you'll be able to find one local who'll talk to you for free for the first 30 mins. Good luck

Gwhiz

Unless you have documented proof I think you are screwed!!

PasturesNew

He wasn't your Estate Agent, he was the developers.
You employed a solicitor to look after your end of things. Did the solicitor know about the 5 year deals? Was it in the contract?

Bootsy

Thank you for your feedback...

The problem i have is that the developer who the EA said would purchase the property back seems to unaware of the agreement i was told about.

He is asking his solicitors to go through the sale details, as will i with a fine tooth comb tonight to check i haven't missed anything obvious.

During the conveyancing process, there were queries from my solicitors about the shared equity but no queries regarding when/if the property needs to be sold.

Im just really concerned the EA got my into the process of buying my flat with an offer which wasn't carried through with the finer details that i thought was on the table. I have an email from the EA in 2008 outlining the "WIN/WIN" offer with a reply from myself asking the exact question "what would happen if i needed to sell before the 5 years was up" - they replied "the same offer applies if the property is sold e.g on year 3". I also have a signed letter from the EA confirming the above.

Im going to await the reply of the developer and if he states that he was unaware that he was under a condition of having to buy the property back at any time then im going to call a solicitor for some advice.

gauly

I would certainly ask a solicitor about this rather than relying on advice from this board. As has been said, yes, the agents were employed by the developer and yes, your solicitor should have checked out this deal, but I don't think that lets an estate agent get away with outright lying about the property (and you have written proof of this). If nothing else else I'm sure Trading Standards will be interested.

Bootsy

Thanks very much, fingers crossed there will be a positive outcome

Fire_Fox

Agree go to your solicitor. Did you never copy these e-mails to your solicitor at the time? Can't you just sell the flat on the open market?

Bootsy

The solicitors were definitely aware the developer has a 2nd charge on the property because this issue held up the sale but there was never any specific query on agreement to sell to him before the 5 years etc.

I checked my file yesterday and i do not have a copy of the contract i signed. Do solicitors normally send a copy? Can i ask for a copy from them still?

I could sell on the open market but by doing this i will need to sell for at least £150,000 to pay back the share to the developer + £4000 early mortgage exit fee + legal fees. I am at the moment exploring my options to see whether there will be any merit in selling direct to the owner incase valuations on my flat are less than what i paid for it.

At least the government has stopped HIP's if i decide to sell :j

Richard_Webster

Very simple. if the estate agent or anyone else told you something then you told your solicitor clearly what you had been told didn't you? You did want to make sure that it was incorporated in any legal agreement didn't you?

If you didn't clearly tell your solicitor what you understood the nature of the deal to be, you have only yourself to blame if it turns out that is not what the agreement said. Solicitor cannot be mind reader. he should tell you what the agreement etc says before you legally commit yourself. If he didn't mention the points you now consider critical you should have taken it up with him then.