Forced to pull out of sale-Agent wants full fee

abccba

I recently accepted an offer on my flat.
Today I had to pull out as I received a bill from the service charge company for communal work done on the building for £4500.00 (my portion) . This bill means that I will have a shortfall from the sale.
I explained this to the estate agent and they said that I will still have to pay their fee in full (£2700.00).

So I am forced to proceed!

I am also worried that the buyers surveyor is not going to value the property at the price he has offered. If the buyer then pulls out do I still have to pay the agents fees?

Any advice?

G_M

What does your contract with the estate agent say? Exact words please.

Miss_Samantha

But whether you sell or not you will have to pay the £4500 so it does not make a difference, does it?

Surely you must have your reasons for selling in the first place.

sparkle01

If the estate agent finds a buyer and you accept the offer, then unless the buyer pulls out, you will usually have to pay the agent fee. Double check your contract to see what it says.

PasturesNew

They found a "willing and able" buyer (at this point), so you do have to pay.

In all (dis)honesty, your best option would be to let it be known that there's a huge service fee and the buyer will have to pay that. They will then pull out and you'll be let off the hook with the agent (probably) as it was the buyer that pulled out and not you.

eddddy

abccba wrote: »

I explained this to the estate agent and they said that I will still have to pay their fee in full (£2700.00).

In general, you can categorise EA's contracts as...

- No Sale, No Fee
- Fee payable for introducing a 'Ready, willing and able' buyer.

So read your contract in detail. Specifically look for the words 'Ready, willing and able' - but some EAs do use other terminology.

abccba wrote: »

I am also worried that the buyers surveyor is not going to value the property at the price he has offered. If the buyer then pulls out do I still have to pay the agents fees?

If the buyer pulls out it is much less likely that you will have to pay any fees to the EA. (But I recently saw an appalling EA's contract were they expected you to pay 75% of the fee, if the buyer withdraws.)

abccba wrote: »

Any advice?

It's immoral and unkind to the buyer, but... you could tell the EA you're not withdrawing after all. Then become a really difficult seller.

If you are sufficiently difficult, the buyer will withdraw - and then hopefully you won't have to pay a fee.

(The downside is that the buyer may be incur further costs whilst this happens - which is not really fair on them.)

Nick_C

PasturesNew wrote: »

They found a "willing and able" buyer (at this point), so you do have to pay.

In all (dis)honesty, your best option would be to let it be known that there's a huge service fee and the buyer will have to pay that. They will then pull out and you'll be let off the hook with the agent (probably) as it was the buyer that pulled out and not you.

But that's not the case. OP has received the service charge bill before completion. It's their responsibility to ensure service charges are up to date.

abccba

If a ready willing and able purchaser is introduced whereby the sale is agreed and solicitors instructed but you subsequently withdraw from the sale for whatever reason and contracts are not exchanged you will pay the full fees.
-
I have let the agent know that I cannot afford to sell anymore due to the bill from the service company. They said that's my problem and I owe them their fee. Could I ask that the buyer cover the bill..... So that means that I don't pull out but the seller might (I haven't seen anywhere in the agents contract that I have to pay if the buyer pulls out).

kinger101

abccba wrote: »

If a ready willing and able purchaser is introduced whereby the sale is agreed and solicitors instructed but you subsequently withdraw from the sale for whatever reason and contracts are not exchanged you will pay the full fees.
-
I have let the agent know that I cannot afford to sell anymore due to the bill from the service company. They said that's my problem and I owe them their fee. Could I ask that the buyer cover the bill..... So that means that I don't pull out but the seller might (I haven't seen anywhere in the agents contract that I have to pay if the buyer pulls out).

You might ask the seller to pay. But they probably tell you where to go. I doubt this would be viewed as them withdrawing from the sale, as it's a situation you've constructed, given you're effectively reneging on a price you'd previously agreed.

As you (probably) need to pay this anyway, the sensible option might be to see what you can do in terms of finding a mortgage with a higher LTV. You can't really get an additional loan for the £4,500 prior to the sale, as it would reduce your mortgage affordability.

I presume this service charge didn't materialize from nowhere....i.e., you were forewarned or consulted about the work? My understanding is the LL can't just decide to do major work without consultation.

http://www.lease-advice.org/publications/documents/document.asp?item=14#12

G_M

abccba wrote: »

If a ready willing and able purchaser is introduced
so have they introduced a ready willing and able purchaser? Yes/No?
whereby the sale is agreed
Has a sale been agreed? Yes/No?
and solicitors instructed
Have solicitors been instructed? Yes/No?
but you subsequently withdraw
Are you considering withdrawing? Yes/No?
from the sale for whatever reason and contracts are not exchanged you will pay the full fees.
so the answer to your Q. is.........?
-
I have let the agent know that I cannot afford to sell anymore due to the bill from the service company. They said that's my problem and I owe them their fee.
and based on the above, do you or do you not agree with them?
Could I ask that the buyer cover the bill
Of course. You can ask anything you want
..... So that means that I don't pull out but the seller ( buyer?)might (I haven't seen anywhere in the agents contract that I have to pay if the buyer pulls out).

Most likely if you ask the buyer to cover the bill, his solicitor will simply advise him not to agree, but not to withdraw either.

abccba

I did not know about the bill from the service company otherwise I would never have agreed the sale at the sale price agreed. I never thought that I as the seller would need to withdraw as I really want to sell. I explained to the agent that I am happy to break even on the deal but now this huge bill means that I will have a shortfall.

What if the survey comes back to say that the property is not worth the agreed selling price? Could that mean that I don't pull out but wait for the buyer to either make a lower offer which I can't accept or the buyer pulls out cause he can't get the mortgage? There is a strong possibility that the survey will come back lower .....could that be my way out of this deal?