Conveyancers charge for aborted purchase

martin_a_kay

Not sure if this is the right place but here goes.
I am currently in dispute with conveyancers about their final charge after an aborted purchase before exchange of contract. Their charge read “Say £500” plus VAT. I took exception to the ‘say’ and queried what I thought was a high amount as their estimate for the purchase given at commencement was £425 plus expenses. They asked for payments ‘on account’ at the beginning and again as work were proceeding, £200 in total and assumed this was meeting their ongoing charges.
There has been several letters back and forth where I have stated that I find the charge unreasonable and ‘in dispute’. I picked up on an admission in one of their letters which stated “.......dealt with a lot of work which would normally be dealt with after exchange of contracts”. This convinced me that I was being charged for unnecessary work as the purchase was aborted before the exchange stage. They are now threatening to hand the matter to debt collectors, which is very worrying as being a pensioner with a clear credit record to date. This charge is not a definitive amount unlike say a loan or goods.
Any advice would be helpful, can they hand this to debt collectors even though it is in dispute? Should I make a further part- payment or just pay what they are asking and put it down to experience?

missjy

Am confused - but did the initial contract between u and your conveyancer state this '£500 charge'? My conveyancer sent me a contract before starting any work/searches that I would have to pay a £150 charge for an abortive purchase.

Richard_Webster

If their estimate was £425 plus expenses and they didn't complete the purchase then normally you would be experted to pay a figure less than £425. How much less would depend on the stage at which it aborted.

They may say that their £425 was only an estimate and because of unforeseen complications they would have charged you more had the matter actually completed, and they may be able to use that logic to justify the £500, but they must explain why the charge is more than the amount originally estimated. Did they quote you an hourly rate and say that normally they would expect that the sum of £425 would cover the time taken? You can see that you need to look carefully at what qualifications there were on the £425.

devotee

You should ask for the breakdown of costs. My solicitor's charge is 795+vat, plus additional expenses for searches and prior to signing the agreement I received en estimate with all the costs involved (Land registry fee, bank transfer fee, energy search etc)...

G_M

My guess is that the £500 is comprised of a % of the £425 fee ('say' £300) + ('say') £200 for disbursements (searches etc) on top of the £200 already paid on account.

Personally I agree that "say £500" is very unprofessional and they should break it down, but be aware that a precise breakdown might actually end up with a higher figure depending what disbursements they have had to pay out on your behalf. A local Authority search might have cost them £150 - 200 for starters.

Why not write back "thank you for your letter. I find the figure you suggest to be excessive but will be happy to offer say £350 in full and final settlement."

Debt collectors. Can do NOTHING unless you let them, or unless hey have a court order. Do not let them in the house. Unless the solicitor actually takes you to court (in which case you'll hear about it and have plenty of time to either pay them off or go to court to put your side) you credit file will not be affected. Credit files are only marked if
a) there is a court judgement against you AND
b) you still don't pay.

Simply not paying an invoice or bill does NOT affect your credit file. Nor does it allow a debt collector to enter your home, take your car, or etc.