Fee for short Exchange to Completion Timescale...?

jaredashe

Hi all,

Some advice would be great!

We are finally due to exchange on our property purchase today.

We were originally due to exchange on the 6th with completion on the 13th. This timescale was agreed by all.

This got delayed a week later, to the 13th/20th.

The seller then tried to delay by another week but our tenancy is up on our rental flat on the 23rd so we couldn't and we agreed to exchange today (11th) with completion on the 20th, to give the seller time to pack and arrange moving.

However, we have just heard today (the seller's solicitor emailed our solicitor at 5.30pm yesterday) to say that the seller's solicitor has a policy to charge £175 + VAT for a 'short completion', i.e. if completion is less than 2 weeks from exchange, and because we couldn't delay exchange any longer due to our tenancy we should be paying that fee!

This is the first time this has been mentioned at all to us - as mentioned above, we've always worked on the timeframe of a week from exchange to completion.

We feel that if the seller agreed to the contract with her solicitor she should be willing to pay the legal fees involved - we have already absorbed costs to pay for indemnity insurance.

What would be the best course of action? Is this normal? Should we simply absorb the fee without a fuss? Or should we hold our ground and refuse to pay?

It seems incredibly unfair (and also needlessly obstructive) to bring this up in what should be the day of exchange.

Any advice would be great!

sirmosh

The fee sounds pretty ridiculous, especially since 5 working days is a pretty standard gap between exchange and completion (or at least everyone I know who has purchased a property in the last couple of years have done 5 days).

I would say they should pay it, it's their solicitor, nothing to do with you, but if it's going to make them insist on a two week gap then you may have no choice but to give in.

DVardysShadow

Go back to your Landlord and ask for another month.

And tell your seller you are getting another month and you will not complete to 23 August.

wriggly

I presume the negotiation on exchange and completion dates took place through the solicitors? In which case, there is a record that the current timeframe was created by the seller's actions.

Get your solicitor to reply, stating that the current short completion time is due to changes requested by the seller, and hence they should pay any fee.

fannyanna

The sellers are trying their luck. Tell them to get stuffed!

Just state that the original plan (agreed by them) was to exchange and complete with a gap of 1 week.

Due to their delays you have been flexible and the new plan actually increases the gap between exchange and completion. On this basis you will not be paying the legal fees that they would have incurred anyway.

snow_ball

In terms of the fee, we had to pay £50 plus VAT for same day exchange/completion when we purchased, apparently it was our sols policy to charge this where the gap was less than 7 days. £175 seems excessive but since it's the sellers sols charging it, the seller should pay it! Especially in the circumstances you have outlined.

fannyanna

When we sold out property (a few months ago) our buyer nearly had to pay £200 + VAT to complete quicker than 2 weeks after exchange. We were happy to be flexible and said she could complete in her own time but she managed to negotiate with her solicitor and complete a few days earlier without having to pay anything.

jaredashe

An update on the outcome for those interested:

We refused to pay it, for the reasons outlined above.

Both my solicitor and estate agent agreed that the fee was probably trumped up as a tactic to get us to agree to a further delay in the sale, despite them knowing our tenancy was up and it was impossible for us to delay further.

My solicitor checked their T&Cs on the website which stated the maximum cost for this fee would be £50-£100. She mentioned this to the other solicitor and how it wasn't really great practice to charge double the fees you advertise. They agreed to drop to £50+VAT instead.

We still felt that it was unfair for us to have to pay, which the estate agent agreed with. Tried to negotiate it away. It basically ended up being that we either pay it or we do not exchange contracts.

So basically we have been forced to pay £50+VAT for a legal fee which we are not really liable to pay.

Awful, obstructive practice from the seller's solicitor which certainly sits on very dubious moral and ethical ground. Not that they care. They've got £50! Well done them. A proud day for solicitors everywhere.

On the plus side, at least we should be able to finally get contracts exchanged today. I shall have to try to forget it and look forward to moving in to the new house!

wriggly

Probably the best outcome given your constraints. Sticking to your principles may have cost more in this case. And £60 is a minimal rip-off in the cost of buying a house.

When your friends/colleagues ask for recommendations for a solicitor, I'm sure they'll be on your "avoid" list.

jaredashe

My thoughts exactly. I did consider pushing it further but ultimately I'd rather purchase the property than have it fall through for a small amount.

Will certainly be avoiding that solicitor, absolutely! Just to add the icing on the cake, my solicitor has all the details ready and has left them a voicemail but looks like they've decided they don't want to exchange until tomorrow morning. Wonderful people.

snow_ball

Grrr, frustrating!!! But it's amazing how quickly those little annoyances fade once completion is confirmed and you pick up the keys to your house