Completed but now getting chased for transfer fee

junglejim1977

Hello everyone I sold my flat and completed a couple of months ago.

My solicitor contacted me this morning and said they didn't realise but there was a covenant in the lease that says the seller should pay the management company a transfer fee of 1% of the sale price which is about £1300.

My solicitor has asked me to pay the management company this money.

I don't really feel like paying it because they didn't provide a good service when I lived there and I have already paid £300 for a 'management pack'(some photocopying)

I wondered If I am legally obliged to pay this money.

Any help would be greatly appreciated.

Thanks a lot

Guest101

Probably, as your lease would no doubt have said.


But double check it just in case (if you still have a copy)

marksoton

junglejim1977 wrote: »

I don't really feel like paying it because they didn't provide a good service when I lived there and I have already paid £300 for a 'management pack'(some photocopying)

I don't really feel like getting up at 5am on a Monday morning, doesn't mean i'm not obliged to by my contract of employment.

What does your lease/contract with the ManCo say?

junglejim1977

Thanks for taking the time to reply

It is mentioned in the lease. I think normally the sale would not go through unless this money is paid before completion but somebody along the line has missed it and the sale went through anyway.

The management company never seemed concerned about their contractual obligations in terms of maintaining the property whilst I lived there. This is why don't really want to fork out for what seems like an extortionate fee especially since it won't prevent the sale.

rtho782

At this point, what will they do? Revoke your lease? You don't own the flat.

Sounds to me like the solicitor has been negligent. What if you had not wanted to sell if you had known this.

eddddy

I would think it's more a case of what was in the sale contract. i.e. did you (or more realistically, your solicitor) state in the contract that you would pay this fee?


The new owner (leaseholder) has taken over all liabilities under the lease, so I would expect the mgmt co to chase the new owners for the £1300...

... but if you agreed to pay it in your contract with the new owners, the new owners could then chase you to get the £1300.

stator

Celifein wrote: »

If you're contractually obligated to pay it, you should pay it. Would you rather they went through the collection process, adding on even more to the amount you owe?

Not necessarily.
Many types of fees have been found to be illegal or unenforcable in the past. (I don't know of any case law relevant to this example)
Normally they will hold up the sale until you pay the fee, thus guaranteeing you pay whether it's legal or not.
Now the OP has a chance to test it if they want by refusing to pay and potentially going to court.

I'd be tempted to just wait until they send a 'letter before action' and then decide.

junglejim1977

Thanks a lot for reply I think that is what I will do.

The charge seems unfair to me but normally the management company has you over a barrel because you can't complete unless you pay.

I'll update after it plays out and state if I have paid or not.

glasgowdan

That's mad, what right do the factors have to a cut of any sales? No more than a gardener demanding proceeds of a sale of half your garden!

Seems like something that may well be the case but seems completely unfair.