Estate agent didn't tell me I wouldn't be able to rent the flat out I was buying.

Christabel

Hello All, advice needed please. I had an offer accepted on a flat that I was buying for investment purposes and the estate agent was aware of this when I put the offer in. I started the legal purchase process but my solicitor noticed that in the lease it says the flat cannot be let out. I will now have to back out from buying it but of course my solicitor has done some work on this so I will be sent a bill.

Can I legally ask the estate agent to settle this bill? Its their fault for not telling me about this clause, although to be fair I don't think they knew, but that's not the point is it.

Where do I stand please?

m0bov

Did you get anything in writting from the EA? Unlikely, at least your Sol spotted it. Was it sold as a BTL Investment?

Christabel

Nothing in writing and not sold as BTL investment ...

~Beanie~

Christabel wrote: »

Can I legally ask the estate agent to settle this bill? Its their fault for not telling me about this clause, although to be fair I don't think they knew, but that's not the point is it.

How do you expect them to tell you something that they don't know themselves? That's what you pay solicitors for, to find these things out, EA's are just there to sell properties.

mrginge

Christabel wrote: »

Can I legally ask the estate agent to settle this bill?

Yes you can.

Thrugelmir

Christabel wrote: »

Its their fault for not telling me about this clause, although to be fair I don't think they knew, but that's not the point is it.

Isn't it? You appear to have answered your own question.

Why should they incur expense and do your leg work for you.

You could have asked to see and read the lease yourself.

PasturesNew

You should have asked this question at the start, asking the seller to specifically answer the question. They'll have known.

As it is, you told your solicitor of your intentions to rent it out, so they were looking for this in the paperwork (and/or thought they'd mention it anyway as so many people do want to rent them out).

There's nobody to sue.

Christabel

Just reviewed the advert on-line from EA and see they bill it as an 'investment property'. Do I have a case now then?

getmore4less

Investment could mean it is cheap or a flipper, not exclusive to letting out.

kinger101

Here's some reading for you;

CPR regulations for EA (published by now defunct OFT).

http://webarchive.nationalarchives.gov.uk/20140402142426/http://www.oft.gov.uk/shared_oft/estate-agents/OFT1364.pdf

TPO guidelines

https://www.tpos.co.uk/images/documents/rules-codes-obligations/residential-estate-agents/tpoe27-2-code-of-practice-for-residential-estate-agents.pdf

The EA's are supposed to provide material information, but with things like restrictive covenants, it's probably on the basis of information they know. I find it difficult to believe the EA would have held back on this if they had known, as an aborted sale doesn't work in their favour.

So unless you can demonstrate that the EA should have known this (perhaps they've marketed lots of flats in this block, or had another aborted sale for this reason), I think you may be on thin ice.

You can ask the agent to pay the fees. You can then raise a complaint with the TPO if they refuse (assuming they are a member). Not sure what your chances are, but writing letters doesn't cost much.

kinger101

Christabel wrote: »

Just reviewed the advert on-line from EA and see they bill it as an 'investment property'. Do I have a case now then?

This probably tips things in your favour. PRINT THIS OUT NOW before they move it from their website.