Barratts charging 3% plus VAT for buyer's introduction?

Bozzy20

Hi guys,

I would be interested to hear what you guys think about this situation I’m in and any advice would be gratefully received.

I was in the process of buying a part-exchanged home from Barratts and unfortunately this fell through because the owner of the house I’m buying has pulled out of buying a Barratts home. The owner of the part-exchanged home contacted me direct to see if I was still interested in buying the house direct. The owners claimed that Barratts messed them about which was the reason why they pulled out. They are still looking to sell. I have already paid out a fortune in solicitors’ fees – we are so far ahead that we were supposed to exchange contracts next week! So this leaves me with not much option but to try and negotiate direct.

The problem is that the owner tells me the price they are asking for includes the Barratts 3% plus VAT for 'introducing' me as a buyer! Apparently, when they agreed to buy Barratts new home and signed a contract which had a clause saying that the owners would have to pay Barratts 3% plus VAT for 'introducing' me as a buyer if they pull out of the sale of a Barratts Home! I have never heard of this. Have any of you heard of this before? Are they still binded by the contract even though they are not buying a Barratts home now.

I just want to check that this clause does really exist? I would be interested to hear what you guys think about this.

Thanks.

aliasojo

Personally I would phone Barratts myself to query this.

You don't have to say who you are or go into detail about why you are asking, you could just be clarifing something for all they know. All you need to ask is - do they charge a 3% fee for introducing a buyer in this situation?

At least that way you would be likely to get an accurate story perhaps?

MarkyMarkD

I don't see why this clause would possibly NOT be binding.

Effectively Barratts have acted as an estate agent for the seller and found them a willing buyer. Barratts agree to do this "for free" if you buy a house off them, but it's fair enough that you pay if you then default on the agreement to buy a house from them.

The price you agreed to pay, is the price you agreed to pay. Why should you pay less now and why should they try to cut Barratts out of the loop?

m00nie

it depends how much you really want the house.

you could tell the seller you are willing to complete the sale still at the agreed price and it is up to them to fulfill there contract with barrats.

or re negotiate.

i would personally try the 1st option first. you could always go back after and talk again.

Bozzy20

Thanks folks. I contacted Barratt and they confirmed that they will charge her 3% plus vat as a finder fee, which is what the house-owner agreed to this when she signed her part exchange agreement.

Barratts has offered me another part-exchanged house (slightly higher property market value) and a newer house for the same price as the original deal so I will not be worse off. They even offered to cover the solicitor fees already occured. I am tempted but what do you think?

MarkyMarkD

That sounds like a generous offer from Barratt. I'd take it if you prefer the more expensive (market value) house.

Bozzy20

Hi folks, your further opinion please!

Some peeps have said that it is normal for Barratts to bump up the asking price (by adding the net value of their incentives (they have offered to pay 5% deposit, a lump sum towards legal fees (£500) and stamp duty) onto the valuation they had done on the property).

A contact tells me that there is no way a three-bed end of terrace in that estate is valued at the price Barratts tells me it is worth. From scanning the property websites I was not able to find a house on that estate valued at or around the price Barratts are telling the house is worth. Only one was valued at £132,000 (but that came with a garage and conservatory).

I asked Barratts for a copy of the valuation they claimed to have had and so far they are being elusive!

What do you think? Think they might be trying to pull a fast one on me??