PLEASE HELP - Agents Withdrawal Fee in excess of £1K

Skylark74

My father put his house on the market with a local independent agent (distant family connection) back in October 2007. The property never sold though he did reduce the price once probably about 18 months ago (from my memory he approached the agent regarding this). From speaking with my sister they seem to be of the impression that he wasn’t that bothered about selling; but they never once suggested to him that it may be better to take it off the market.

Sadly my father passed away a couple a few months ago. I am an executor (along with my two siblings) I wanted to move the agency straight away but one of my siblings has a friendly connection with the agency and so to consider my sister’s feelings I agreed (along with my brother) that they could retain the house and have one final limited chance. When my sister contacted them, the agents did not make any terms and conditions clear to us and even said in passing “oh I forgot that was on the market”... alarm bells were going off but we’d agreed. We asked for an up to date valuation as we thought the house was overpriced and reduced it; we were never made aware of any terms and conditions, and assumed that this was on a no sale no fee basis (both myself and my sister had a house on the market with the agents in the past that we’d withdrawn for no fee). In 8 weeks we had one viewer and other than feedback from that viewing received no communication from the agents.

After 8 weeks I felt we’d not seen any improvement from the agent and with reluctant agreement from my sister decided to withdraw the property from the local agent (to go with a new agent). When my brother made the call he said he wanted to withdraw with immediate effect, they advised that we needed to give 14 days notice and nothing more, they didn’t even ask why we wanted to leave!

After about a week we received a bill from them for over £1,200! This is predominantly made up of advertising, local newspaper x 23 (charged for 17 = £595), local property guide (charged for 26 = £260), in addition to internet (£100), for sale board (£20) and withdrawal charge (£50).

My father was meticulous about keeping paperwork and when we cleared his house I didn’t find a copy of any paperwork so we wrote to them to request a copy of the contract my father signed. They have provided this and he did sign it, it does mention charges for advertising (6 ads @ £35 each included; additional units to be payable in advance at this rate. Internet at a charge of £100. Local Property Guide at £20 each and For Sale board £20 per board). Obviously they never requested the additional units to be paid in advance.

I’m aghast that they’ve let this mount up and feel that it’s not reasonable for them to charge us (my late father) this amount of money for doing a bad job!!! Had we realised the costs involved we would not have continued to market with them when he died. I want to fight this and would appreciate any help... we’re thinking of trying to negotiate and pay for the first year and maybe some of the costs of the last 8 weeks…

Main grievances over their bad service:

• Been on market since October 2007 ample opportunity to sell why hasn't their work produced an offer?
• Not actively reviewed by agents (I am of understanding that it was Dad who approached them to reduce)
• Not actively marketed...When my sister phoned to say dad had died one of the ladies she had forgot that it was on the market!
• Where are terms and conditions? (Since we contacted them when dad died we were not made aware of verbally, in writing and nor are they available on the website. Surely we're not bound by these if we're not made aware of them!)
• No contract signed by us (and not made aware of any terms & conditions at point of our notification & instruction of dad’s death)
• Latest valuation of £175-£178K not realistic and produced only one viewing(3 other agents have now provided £165K, £165K & £160K)
• Not made aware of any withdrawal charges when we advised we would like to take it off the market (nor asked why)

poppysarah

Ring the local press and see if they'll do a story about it. Be prepared to have your photo taken with for sale sign and you looking sad.

jjlandlord

Skylark74 wrote: »

Obviously they never requested the additional units to be paid in advance.

Unless there is a provision regarding them publishing extra ads without needing authorisation anywhere, ask them to show you the records they have that these extra ads were actually authorised.
If they can't, refuse to pay.

googler

So...the contract agreed to

6 ads @ £35 = £210
Internet £100
Property Guide £20 each (an unspecified number?)
For Sale board £20

the bill presented;

local newspaper x 23 (charged for 17 = £595),
property guide (charged for 26 = £260)
internet (£100)
for sale board (£20)
withdrawal charge (£50).

Which all matches up, except they've given you 6 free newspaper adverts - placed 23, charged for 17, and you seem to have got 26 property guide entries for the price of 13 - 26 at £20 = £520.

Based on this, it looks as though, even though you're paying a withdrawal fee of £50, they'll actually still be out of pocket for the extra advertising. Or am I missing something?

botchjob

From what you say it seems clear that they have a legitimate claim for the things your father signed for, but nothing more. I'd suggest you should address the matter in writing, volunteering the amount you feel is legitimate and stating why.

Skylark74

googler wrote: »

So...the contract agreed to

6 ads @ £35 = £210 (6 were included free)
Internet £100
Property Guide £20 each (an unspecified number?) (Yes unspecified)
For Sale board £20
Withdrawal charge @ £50

the bill presented;

local newspaper x 23 (charged for 17 = £595),
property guide (charged for 26 = £260)
internet (£100)
for sale board (£20)
withdrawal charge (£50).

Which all matches up, except they've given you 6 free newspaper adverts - placed 23, charged for 17, and you seem to have got 26 property guide entries for the price of 13 - 26 at £20 = £520.

Based on this, it looks as though, even though you're paying a withdrawal fee of £50, they'll actually still be out of pocket for the extra advertising. Or am I missing something?

Thanks. I think having seen a copy of the contract a key point is that on the page where my father signed it states (re newspaper) "Additional units to be payable in advance at this rate", therefore as they didn't ask for it is it valid? My main gripe is that it does seem like they are charging us (my dad) for doing a bad job and had they have done their job well a) it would have sold and b) there wouldn't have been these costs.

Skylark74

My father did sign the contract but surely when he did (back in October 2007) he expected a better service for the contract he signed! Have they not been a little negligent in allowing the bill to run up like this?

angrypirate

I think you might need to speak to a lawyer regarding your legal position. I dont know if you automatically take on the charges and contract agreed to by your father, but I assumed you probably do, especially as you continued to market with them.

On the other hand i cant see how they can charge you for the extra marketing that wasnt originally agreed to. If you want a quick and easy way out, then tell them you will only pay the charges agreed to by your late father - ie £350. Unless they provide proof of these extra marketing costs being authorised by your father then do not pay these extra costs at all. If you want to fight it all the way (and it will probably be a long fight), then contact the local press and try and get a good article in there about it like poppysarah said

taxsaver

I think I would ask for a detailed breakdown of when each of the charges occurred (i.e. the dates that adverts were run) as well as proof of your late father's authorisations.

Once you have this then you potentially can argue on two separate issues; the first being that your father did not authorise all of the extra adds that occurred before his death and the second that when you informed them of his death and instructed them to (continue) to market the property that this was a new contract as they clearly could not contract with your father, so were doing so with you as exor. and that you have not signed anything or in any way been notified of withdrawal charges and advertising fees of any sort, so all charges post their notification are invalid.

I would try to avoid going to the press just yet, give them a chance to back-track first and see if you can reach an amicable solution. Once you go public then they might become more entrenched.

Skylark74

Thanks taxsaver. I think your on the same wavelength as I am. We accept my father signed a contract and are willing to reach a reasonable settlement and would like to do this privately if possible.