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Need clarification on Sale by Tender
koalachan
Posts: 9 Forumite
I was hoping anyone could help me on this. Will really appreciate it. My maths are not good!
Example: If I submit an offer of £200,000 (purchase price). Does it mean I must pay £4000 (2%) and £800 (VAT)? ie total £4800
or
£4000 (2%) and £40,000 (VAT) ie total £44,000?!
Any advises would be appreciated.
Terms:
"An introduction fee of 2% + VAT of the contracted sale price or £2,000.00 + VAT (whichever is greater) will be payable if the tender bid is accepted and a sale results at any time.
This fee becomes due for payment on exchange of contracts. The total fee will be confirmed in our memorandum of sale and must be lodged with the purchaser’s solicitor prior to exchange of contracts and settled by the purchaser’s solicitor within 10 days of completion of the sale.
Interest may be charged at 3% per annum above Barclays Bank base rate if the account remains unpaid after this time"
Example: If I submit an offer of £200,000 (purchase price). Does it mean I must pay £4000 (2%) and £800 (VAT)? ie total £4800
or
£4000 (2%) and £40,000 (VAT) ie total £44,000?!
Any advises would be appreciated.
Terms:
"An introduction fee of 2% + VAT of the contracted sale price or £2,000.00 + VAT (whichever is greater) will be payable if the tender bid is accepted and a sale results at any time.
This fee becomes due for payment on exchange of contracts. The total fee will be confirmed in our memorandum of sale and must be lodged with the purchaser’s solicitor prior to exchange of contracts and settled by the purchaser’s solicitor within 10 days of completion of the sale.
Interest may be charged at 3% per annum above Barclays Bank base rate if the account remains unpaid after this time"
0
Comments
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It's VAT on the fee, so your first example.0
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It's zero plus zero VAT if you look for another house, and tell the agents to stuff their buyer's fee for no service where the sun don't shine.0
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The term says "An introduction fee of 2% + VAT of the contracted sale price"
So I thought it's 20% of £200,000 instead 20% of the introduction fee.0 -
No, it's just badly written. They can only charge VAT on the cost of the service they provide.
Personally I wouldn't deal with a company like this, why should you pay the sellers fees for them.0 -
The term says "An introduction fee of 2% + VAT of the contracted sale price"
So I thought it's 20% of £200,000 instead 20% of the introduction fee.
You thunk wrong. There can't be VAT charged on the price itself anyway (unless the seller is charging it, because they are VAT-registered and had elected to waive VAT exemption on the property - which is something you only ever encounter in commercial properties).0 -
I know! Thanks very much. And no I won't deal with them but I thought it's good to know about this.0
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Which agent? Cubitt and West?0
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