Solicitor Changed Contract After Signing!

tdg111

I'd say that the fact the contract states 11k and this is then crossed out and 5k written on top gives you some leverage/evidence that when your mate signed it stated 11k.

When I've dealt with contracts in the past, I've been expected to initial and date any changes to the printed contract to show I agree to it.

Richard_Webster

There is no chance at all of getting the builder to allow the £11k incentive. As far as the builder was concerned the contract was altered by the buyer's solicitor as the buyer's lawful agent to show a £5K incentive and the buyer's solicitor could do that and the builder is entitled to rely on that. End. Period. Finish.

Get that out of the way completely, OK?

Next question is whether the solicitor should have done that.

The builder may be entitled to rely on the solicitor's ostensible authority, but that doesn't stop the buyer saying that the solicitor should not have done so. There may be some mileage in a complaint about that.

However, as I have already pointed out, I think it is unlikely that the buyer will be able to recover much of the extra money he spent. As he originally agreed 5K any sensible person would check with their solicitors about the extra £6K when they got the contract to sign.

Also this is a powerful argument:

The solicitor's defence will be that he knew the client had agreed the lower incentive so there was no need to consult. The solicitor is not meant to know that your friend was hoping to pull a fast one and so confident he had already spent the proceeds. For all the solicitor knew, your friend may not even have noticed the mistake.

DVardysShadow

Richard_Webster wrote: »

There is no chance at all of getting the builder to allow the £11k incentive. As far as the builder was concerned the contract was altered by the buyer's solicitor as the buyer's lawful agent to show a £5K incentive and the buyer's solicitor could do that and the builder is entitled to rely on that. End. Period. Finish.

Get that out of the way completely, OK?

Next question is whether the solicitor should have done that.

The builder may be entitled to rely on the solicitor's ostensible authority, but that doesn't stop the buyer saying that the solicitor should not have done so. There may be some mileage in a complaint about that.

However, as I have already pointed out, I think it is unlikely that the buyer will be able to recover much of the extra money he spent. As he originally agreed 5K any sensible person would check with their solicitors about the extra £6K when they got the contract to sign.

Also this is a powerful argument:

Come off it. 'tis rare I argue with you. But the net effect of your argument is that you are convincing about the OP's friend's solicitor having the authority in negotiation to make that change which is binding on OP in relation to the builder. And that being the case, you are totally unconvincing about OP's solicitor not being responsible to OP for the the £k6 extra costs incurred as a result of the solicitor's intervention.

jjlandlord

DVardysShadow wrote: »

And that being the case, you are totally unconvincing about OP's solicitor not being responsible to OP for the the £k6 extra costs incurred as a result of the solicitor's intervention.

From OP's description, "solicitor's intervention" was to correct a mistake in order to accurately reflect the actual agreement.
I hardly see any 'extra cost' incurred by anyone here.

rpc

jjlandlord wrote: »

From OP's description, "solicitor's intervention" was to correct a mistake in order to accurately reflect the actual agreement.

Except that amendment was not in the best interests of their client. The developer's solicitor should have been the one to flag up the error. With contracts signed, the buyer's solicitor should not have changed it to the detriment of the buyer without consulting them first.

Aside from anything else, there is definitely something fishy when the solicitor will not even admit that there was a change made. If the solicitor spotted a mistake and corrected it, they should be prepared to say as much to their client.

littlesparkles

I'm buying a new build and getting a 5% builder's deposit paid. However I had to declare this to my mortgage lender and they wouldn't then grant me the mortgage if I was getting a larger deposit paid by the builder. Has your friend checked with the lender to see if a larger deposit from the builder would even be acceptable?

Richard_Webster

And that being the case, you are totally unconvincing about OP's solicitor not being responsible to OP for the the £k6 extra costs incurred as a result of the solicitor's intervention.

If OP had mentioned the point to the solicitor and said he would quite like the extra £6K and would the solicitor see if he could get it agreed then I suppose the solicitor could solemnly go through the details of the contract with the seller's solicitor on the phone and if when he got to the point about the £11K incentive the other solicitor agreed it then they could have exchanged on that basis and then it would be a binding contract with amount of incentive and the builder would then be complaining to his solicitor!

Much more likely the other solicitor would have pointed it out and OP's solicitor should then have contacted his client (and probably should have done so in any event) and said that the builder had made a mistake and the incentive should be £5K. "Your reservation form says £5K incentive doesn't it?"

However from what has been said OP knows jolly well that if he had talked to his solicitor about it the probability is that the error would have been pointed out and the solicitor would have asked for authority to make the alteration and it would then have been done with actual rather than ostensible authority.

If the case ever came to court OP would be cross examined as to why he thought that the incentive had suddenly changed from £5K to £11K and why he didn't think to ask anyone about it. It would depend on the court's view of whether OP genuinely believed that miraculously the incentive had increased and didn't see the need to make sure by asking his solicitor.

OP's solicitor's insurers would argue that the main cause of the £6K extra expenditure by OP wasn't the mistake on the contract but OP's decision to spend the money without checking the matter with anyone. They would make a low offer to reflect the chances that OP would probably lose in court. I'm not saying he wouldn't get anything but I would suspect it might only be say 25% of his alleged loss.

paddyrg

sho_me_da_money wrote: »

...It's a bit like finding a bargain on the web only to find the retailer made a mistake on the price. In most cases, they honour the sale.

Actually, no - https://forums.moneysavingexpert.com/discussion/3277262

DVardysShadow

Richard_Webster wrote: »

Much more likely the other solicitor would have pointed it out and OP's solicitor should then have contacted his client (and probably should have done so in any event) and said that the builder had made a mistake and the incentive should be £5K. "Your reservation form says £5K incentive doesn't it?"

Exactly. This is what OP's friend's solicitor should have done. Not taken out their biro and changed the contract. What the solicitor did is unforgiveable - not so much for the effect on OP's friend but more for knowing better than the friend, acting outside their mandate and changing documents over the top of their clients signature. It is a bad precedent

Mischa8

sho_me_da_money wrote: »

Hello there,

One of my mates has bought a new house (new build) where part of the agreement was that the developer would contribute £5K towards his deposit.

To cut a long story, the paperwork (contract) came through and this £5K figure was noted down as £11K. Obviously he kept shtum to see how the deal went. Further contracts came through and all parties signed and agreed on £11K.

In the week of moving in, the solicitor (appointed by the developer) provided a summary of the fees owed to the developer, which excluded their £6K mistake. This paperwork was not a contract, it was merely a summary/instruction to transfer the owed funds.

So my mate requested a copy of the contract from the solicitor. She forwarded it through with a blatant X over the £11K amount.

Other than having the option to cancel and pull out of the agreement, does he have any other legal right to recover the agreed amount?

Thanks

Right - briefly and not necessarily noting the other replies here. I work as a PA for a conveyancing solicitor and here's my take on it.

First off - the solicitor should FIRST have noted their mistake when it came to the extra £6K and no contracts should have been signed by all parties - including developers side. It seems that with this money provided by the developers a mistake was made by someone, and it's critical this mistake was picked up on at the time BEFORE contracts were signed. AT THE TIME contracts are signed buyer/seller/developer is bound to sell at the agreed price, with agreed deposit etc. Generally I would have thought you could amend the £11K figure here, but not 100% sure if you can do that how far down the line after contracts are signed.

re your 2nd para - was this summary of fees ONLY owed to the developer but also Land Registration fees, solicitors fees etc. This would normally be (if not for developer) what we call a Completion Statement e.g. monies needed to complete the transaction, enable your friend to move in etc. and NO this is not a contract, contracts are usually signed as far as I recall before completion statement is issued.

The solicitor was really doing the correct thing as according to what originally agreed the figure WAS £5K and not £11K - hence her crossing through that figure. Hence what I said about someone else other than the solicitor putting down another figure.

But now stupidly your friend has spent this money - stable door closed after horse has bolted. I don't really think the solicitor is to blame here, I think the company who amended the figure (e.g. developer etc) is to blame and the recourse should be with them if anything. as to whether your friend will get anywhere is another story.

The solicitor (as someone else said also in conveyancing here) will probably argue that THEY did not agree the £11K and merely amended that figure on the contract.

Finally, it is also down to your friend to double check the figure - he should have spoken up IMMEDIATELY he saw the increased figure and not just assumed he had extra cash.