Estate Agent Withdrawal Fees

Bambiford

CAN ANYONE ADVISE ME?

I am new to the site and need a little advice please. In Aug 2009 I put my property on the market with an Estate Agent for £189950. The property was at that time tenanted. During the first few months we had one viewing - the agent did not tell us about this but arranged it direct with our tenants and I only found out about it from them. The agent did not provide us with any feedback until I called asking why we were not informed there was a viewing scheduled. In Jan 2010 the Agent asked us to reduce the price..at the time I said no as I didn't feel after only one viewing it was time to reduce. They then sent another viewer round - this time without advising us or the tenants....viewer showed up at 7.30pm one evening when the tenants were dressed for bed. They were not happy. Three weeks later the tenants came home to find a sold sign on the property - put up in error and not removed for three weeks despite my calling the agent three times during that period (sorry if this is a little disjointed and long winded but I am trying to display all the facts). Soon after my tenants moved out (Feb 10) as they were unhappy with the way the Agents were behaving and said they weren't prepared to live with all the 'drama'!. I complained to the agents in writing about their shoddy service and they apologised profusely and agreed to lower their eventual commission fee. For some reason I agreed. At this point I also dropped the price by £10000 as the need to sell was more urgent. A few months later, having heard nothing from the Agent, we re-let the house. Admittedly I received one call about a viewing during this new tenancy (April 10 to Nov 10) but my tenants were unwilling to show them around. Admittedly that was not the Agent's fault.

The difficult tenants left in Nov 2010. I told the Agents the property was now empty and needed to be sold urgently and included a buyer incentive of stamp duty paid (the Agent did not suggest we lower the price again). We completely re-decorated and suggested they come and rephotograph the house - they never did. The agents did not advertise the incentive being offered. I called them to ask why not - they said they were telling buyers when they enquired about the property. I therefore decided to send a friend in to the Branch to make enquiries and see how our house was being marketed. She came out incredulous - said they didn't tell her about the initial reduction, the incentive or give her the property details. Infact they told her there was a preferable property over the road with a lovely kitchen, gave her the details of it and advised her to go see that. She told me she had mentioned my property by name at least five times but each time the agent had steered her in another direction. I immediately contacted the agent, registered my disdain and received several calls from the Branch Manager admitting to me that this was bad practice and saying the sales person responsible had been admonished - and practically begging for me to leave it on their books. To be honest I had so many other problems in my life (sick husband and four children) that I didn't have the energy to get heavy with them (although thankfully I have kept all copies of written complaints and records of telephone calls). The following week we had a viewing from a lady who loved the house....she had a budget of £140000 tops though. Is it unreasonable that on a house reduced (then) to £179950 I shouldn't be expected to take over 20% less ?? And if she had told the agents about her budget why send her round?

The house was re-tennanted in Feb 2011. These tennants were more than happy to show buyers round and understood the house was for sale. We also dropped the price by a further £15000 at this point. We had no calls from the agents from Feb to July. Finally in July 2011 I wrote to them and said I was withdrawing the property (after two years on their books and only two viewings). You may at this point be considering the fact that perhaps the property is particularly unattractive or presented badly......I can only assure you that it is a beautiful turn of the century cottage called "Fairview" for it's beautiful, you guessed it, views. There is nothing adverse about it.

Or wasn't. As it happens the house has recently started to show huge cracks which it turns out is subsidence (yes I am cursed). It is on a steep hill and several properties are suffering too so there must be something going on in the area. The insurers are saying it will be at least twelve months before the issues with the ground are resolved, if that. Personally I hope it falls down in a big fat heap I am so tired of it all.

Anyway - the agents are now asking for £240 in withdrawal fees. When I checked the contract it did state that a withdrawal fee 'may' be payable but I remember asking the sales lady at the time of signing why a withdrawal charge was stated (I had never seen this before) and she said that it was to prevent time wasters and would only be relevant for a reasonable amount of time. The contract was not dated, it states "this contract is for a mimimum term of *******" which field was left blank. I called them and said I had no intention of paying as I feel two years with only three viewings, all the mistakes they have made, the fact I forked out a whopping £448.50 to them at the start for my HIP and considering I have reduced the property by £25000 over that time....it's ridiculous. Surely a contract cannot last for two years?

Now they are saying they are taking me to Court. I have expressed my wish to have the matter investigated through their in house complaints handling system (ie have head office look at it and if they don't agree with me I shall take it to the Ombudsman) but they are still saying they are entitled to take it to Court whilst it is being looked at.

Any advice would be welcome. But please don't chastise me for leaving it floundering on their books for so long....I already know I was wrong to do that.

Thanks.

Bambiford

ABBRIEVIATED VERSION:

Had an Estate Agent for two years who got us three viewings in that time. Have dropped the asking price twice by £25000 total (on a £189000 house). Agents have been useless and we have made formal written complaints twice over the two years and various verbal ones.

Now told them to forget it as the house is subsiding and we can't sell it. They want £240.00 in withdrawal fees.

Their contract stated a fee 'may' be payable on withdrawal. The contract was for an initial period of "XXXX" left blank. Which they say is legal??? I was assured at the time the withdrawal fee was only to cover them against 'time wasters'.....not then I assume relevant when property been on for two years. Already paid them £448.00 at start for HIP.

Now they are taking me to Court, so they say. I am going through the official complaints process with them and will take it to the Ombudsman. Can they take it to Court whilst it is in dispute.? And what kind of fees can be levied on a £240.00 bill?

hcb42

ask them what is the normal withdrawal period without penalty. It sounds like yuo are well beyond that.

Or you could just leave it on the market - for ever - avoiding the fee - and get the difficult tenants back in...!

DVardysShadow

Bambiford wrote: »

Can they take it to Court whilst it is in dispute.? And what kind of fees can be levied on a £240.00 bill?

Anyone can take anything to court. The more interesting questions are

• can it be resolved without going to court?
• what is the likely outcome in court if it goes there?

Being in dispute is not going to stop something going to court. Court is where things go if they are not brought out of dispute earlier.

Your best opportunity to leave this contract was when you sent your mystery buyer in - good move, but you failed to follow up. At that point, you had clear evidence of breach of trust and dereliction of duty to the client and I would think that the breaches were sufficiently serious that you could have sacked the agent instantly and without penalty.

However, as you left the property on the agent's books, I would think that this opportunity has long gone.

I think you now need to hang your case on the clause
stating "a fee 'may' be payable on withdrawal" and argue that because of their dereliction of duty, they are entitled to nothing or very little - and that £240 was never mentioned or agreed. You do need a written statement from your friend as evidence before you decide to defend this.

On the whole, I think it may be better to make an offer of £50 or whatever you are comfortable with 'without prejudice' and state your mystery shopper's experience.

Bambiford

thanks for linking this up to my old thread also....navigating round this site is proving beyond my abilities!!

You are absolutely right I should have taken the property off the market when my mystery shopper visited.....there were many phone calls back and forth and ultimately the Manager practically begged me to keep it on with them. I am not sure why. I am also not sure why I decided to go with it either.

I think I am just going to let it run and see where it takes me. I did say to them that faced with the option of paying a withdrawal fee or staying on their books it was a no brainer....they do nothing anyway. Now the house is subsiding it will never sell until the work is done and that could be an age. They haven't pursued this as an option though.

I shall write to them today and offer the £50 or nothing.

kiddy_guy

I wouldn't offer them a penny.

If their contract does not state a timeframe for which you can withdraw without penalty, I believe this could classify as an unfair term. If you left it on for 100 years, this could mean they could still take you to court??

tonycottee

Could you not leave it on the market with them, but say you want to raise the asking price to £1m? That way they would have to print out new booklets which will cost them. If you keep changing the price, I'm sure they would soon get fed up with you.

DVardysShadow

Bambiford wrote: »

I shall write to them today and offer the £50 or nothing.

Make sure that you offer this 'without prejudice' and that you feel that because of the mystery shopper you do not believe they are entitled to anything.

Bambiford

After feeling incredibly tearful this morning I decided to call them and have just spoken to their somewhat snotty Director who informed me that she has today written offering me an award of £350.00. Apparently she has reviewed the file and realised that there were a few occasions of negligence on the Agents part. Agents have been chastised and their personnel files marked! After taking off the fees they feel I owe I am left with £110.00. As I am a wimp and emotionally too highly strung already I shall accept and let the matter drop. Does make me wonder though what a more persevering person would get if they pushed further.

Thank you sincerely everyone for your advice and encouragement.

DVardysShadow

If nothing comes within 7 days, write and summarize the conversation and the offer and ask for the complaints procedure. Keep a copy. You need the conversation on the record - even if you have to put it there - rather than let the matter drift and have the compo forgotten and the bill of £240 remembered.