Service charge refunds post completion

Nic855

Hi

We completed on our flat 4 months ago now. Now we have letter saying that the seller has requested a refund of the service charge as it is showing the account is in credit by a few hundred pounds. The freeholder won't give it to them as we now own the lease but the seller solicitor has contacted us asking for us to refund it. What's our legal position here? My understanding is that if it were the other way round we would be liable for any outstanding debts that weren't settled in the financial statement at completion. We already paid 100 pounds which was towards the pro rota cost of the service charge looking at the financial statement and it doesn't appear there were any provisions for this situation from what I can see?

Any advice would be appreciated. I will obviously speak to our solicitor but to be frank I've not be impressed to date so would like to hear other views as well first.

Thanks

mustang1

When does the service charge year end? I would wait until that has passed and the accounts have been finalised to make sure there is no deficit owed to the freeholder.

Then get confirmation from the freeholder that no other service charge is owed from previous years and after that you can tell them they can release money to the seller (or you can refund the seller and keep the credit on the account).

As SAM Conveyancing has said - this should have been picked up by his solicitors and you might want to suggest he takes that up with them!

eddddy

Nic855 wrote: »

...but the seller solicitor has contacted us asking for us to refund it. What's our legal position here?
....

So the seller's solicitor has contacted you directly?

This sounds very, very dodgy. If this was all legit, the seller's solicitor would have contacted your solicitor. (Perhaps they know that your solicitor would just laugh at them.)

My guess is that the seller's solicitor screwed up, and is having to pay compensation to their client. So they are trying to 'hoodwink' you into covering their losses.

In your position, I would reply along the lines of:

'Please clarify whether you are seeking this payment under the terms of the contract, or whether you are seeking it as a gesture of goodwill. Please also clarify why you are contacting me directly, as opposed to via my solicitor."