Costs Demands After Completion

marka09

I'm looking for some advice on where I stand legally with regards to following situation. (I will be taking legal advise but I'm currently outside the UK and hoped I could get a rough idea here)

My father passed away this year and as the executor I dealt with the sale of his retirement property. The sale completed in July and I received the completion statement and proceeds of the sale after all deductions.

Two months later I was contacted by the licensed conveyancer from my solicitors firm who informed me that she had overlooked something in the lease and there was a charge of due to the property management company of 1% of the sale price. She also found that another charge, also of 1%, looked due but that it had not been requested so we may, in her words, 'get away with that'. I made it clear I wasn't happy with any of this and would need all the paperwork regarding the matter sent to me. She informed me she was leaving the company the very next day and would pass the matter on.

I didn't hear a thing until the end of last month when I received an email from my solicitors saying that they had been forced to pay the 1% to cover my liabilities and that I should reimburse them. I found this very odd as they wouldn't pay anything on my behalf during the process without me sending them the funds first.

I now have received another email (nothing by post so far) saying that the other 1% is also now due and I need to send them the 2% fee to protect myself from legal action by the purchasers as clear title can't be given to them.

I can see clearly that the charges under the lease are due but I'm wondering if I have some grounds for pursing the solicitor to either pay this or grounds for compensation for them not noticing this before completing the sale and releasing the funds?

Thanks in advance for any replies/advice.
Mark

marksoton

Your conveyancer shouldn't do anything unless expressly instructed. So paying that fee is probably beyond the pale.

I'd say they are trying it on due to their !!!! ups.

wwl

How exactly were they "forced to pay"?
First step would be to check the terms and conditions you signed when you engaged them. Wouldn;t be surprised if there is a clause to cover this sort of thing.
It may be that you are liable for the charge, but porbably not for any of their time dealing with it, or any interest, as it's their error.

marka09

Yes, I took the fact that they made the first payment as a sign that they had little choice due to their errors but now another charge is outstanding I'm not sure where that leaves my liability with the management company or the buyer getting clear title.

AdrianC

marka09 wrote: »

I can see clearly that the charges under the lease are due

There's your answer.

I presume the solicitor are just asking you to pay the amount you would have had to pay had this been discovered at the correct time, and not any penalty or additional fee due to the late discovery?

marka09

wwl wrote: »

How exactly were they "forced to pay"?
First step would be to check the terms and conditions you signed when you engaged them. Wouldn;t be surprised if there is a clause to cover this sort of thing.
It may be that you are liable for the charge, but porbably not for any of their time dealing with it, or any interest, as it's their error.

Here is the wording in the email regarding the fact that they paid the charge:

"This is clearly due and so that you are not in breach of contract I have been obliged to pay this out of our office account and need to be reimbursed please."

I'll check back but I don't think I have any specific terms regarding them dealing with the sale as they just continued dealing with the matter after processing probate etc.

marka09

AdrianC wrote: »

There's your answer.

I presume the solicitor are just asking you to pay the amount you would have had to pay had this been discovered at the correct time, and not any penalty or additional fee due to the late discovery?

There is no penalty charge I am aware off but do they not have an obligation to ensure all charges have been paid before releasing funds to me? The charges due where in the lease which they had in their possession and supposedly went through from day one of instruction?

G_M

If the charges are due, then you should pay them.

I appears the soliciors have paid on your behalf to avoid action being taken against you.

Having said that:

1) the solicitors clearly did mess up by not spotting this charge during the conveyancing process and
2) the change of conveyancer clearly delayed/confused matters

Neither of the points above remove your liability, though a formal written complaint to the solicitors might lead to an apology, and goodwin token of some sort.

I started with:
"If the charges are due, then ...."

But are they due?

Have they ever written to you (you know, a proper letter) laying out what and why the carges are?

davidmcn

marka09 wrote: »

There is no penalty charge I am aware off but do they not have an obligation to ensure all charges have been paid before releasing funds to me? The charges due where in the lease which they had in their possession and supposedly went through from day one of instruction?

Ideally yes they should have, but their failure to do so doesn't affect your liability.

marksoton

AdrianC wrote: »

There's your answer.

I presume the solicitor are just asking you to pay the amount you would have had to pay had this been discovered at the correct time, and not any penalty or additional fee due to the late discovery?

But it wasn't by the person the OP has paid a fee to for this very function.

For them then to pay a fee without instruction just smacks of being guilty of incompetence and trying to save face with the freeholders representation.

To then try and recoup this cost from their client is pretty damn poor.

TBagpuss

Did they send you a copy of the lease before completion?

Is the situation that you knew there would be charges but not the precise amount, and that they forgot to include it in the completion statement, or that you knew nothing at all about it?

In your position I think I would probably be going back to the to say that you relied upon their expertise to check the lease and any requirements, and that you feel that they have been negligent in failing to identify or advise you of these payments.

2% of the value of a property is, presumably, a fairly substantial sum. Would have have agreed the price you did if you'd known? If not, then you haven't actually lost out financially so I would pay but perhaps try to negotiate a small refund on the costs to compensate you for the hassle.

If you think that you could have successfully negotiated on the price if you'd known about the higher costs of sale then I would raise that.

ANd I would be telling them, now , of what their colleague told you about the second payment and asking them to ensure that that issue is resolved. You don't want that coming out of the woodwork later