Sale fallen through - conveyancer charging me fees!

TolsBols

I instructed an estate agent to sell my property, on the basis they also offered their conveyancing service free of charge. They found a buyer and all was proceeding, albeit far slower than I would have expected. Unfortunately, the buyer pulled out (according to the estate agent, literally a few hours between asking for a Completion date and deciding not to proceed!).

Foolishly, I didn't take out the abortive fee cover at the time of instruction. So as a result, as we were close to exchange the conveyancers are now charging me for all fees incurred.

I am absolutely livid! :mad: The conveyancers were also acting for the buyer (albeit with a different representative to mine). The buyer's conveyancer dawdled for over 2½ weeks to complete searches on what is only a 1st floor flat before getting back to my rep. If not for that, the exchange could have been wrapped up before the buyer pulled out.

Do I have any recourse of action here, or has the conveyancer got me over a barrel and I'm forced to pay the fees?

dc197

What does your contract with the conveyancer say about fees due on abortion?

AdrianC

You were offered a no-sale-no-fee package. You refused it.
The sale fell through.
So...

Yes, you do have to pay the fees incurred to date.

LittleMax

They've done the work and need to be paid. What have they said about ongoing fees when you find a new buyer?

david1951

TolsBols wrote: »

I instructed an estate agent to sell my property, on the basis they also offered their conveyancing service free of charge.

Why don't you tell them that you thought the conveyancing service was "free of charge"?!

eddddy

You need to read the contract you agreed to, to see what fees are payable if the sale aborts. But it's usual to have to pay some/all of the fee in these circumstances.


I suspect the EA ends up up with a chunk of the fee - so it sounds like a conflict of interests...

... each time the EA finds a flaky buyer who later drops out, the more cash the EA earns. So it's in their interests to attract a few flaky buyers before finding a good one.

hazyjo

eddddy wrote: »

You need to read the contract you agreed to, to see what fees are payable if the sale aborts. But it's usual to have to pay some/all of the fee in these circumstances.


I suspect the EA ends up up with a chunk of the fee - so it sounds like a conflict of interests...

... each time the EA finds a flaky buyer who later drops out, the more cash the EA earns. So it's in their interests to attract a few flaky buyers before finding a good one.

Do they? AFAIK, the EAs don't get paid unless it completes or maybe if the seller decides not to sell after they've found them a buyer.


Jx

TolsBols

AdrianC: By letter of contract, yes I probably do have to stump up. My defence is that the buyer's rep and mine are part of the same conveyancing arm and it's the slacking from the buyer's rep that has partly led to this outcome. I constantly chased up whether she had responded to my rep with the searches and I was told repeatedly over those 2½ weeks that she hadn't got round to it!

My ire is that I am now chargeable for their dawdling! At best I would expect the conveyancing arm to waive some, if not all of those fees due from me!

The complaints process instructs me to direct a complaint to the director and if I remain unsatisfied, to contact the Legal Ombudsman. Would I be wasting my time though?

bod1467

None of us have seen the precise wording of your contract, so I suspect none of us can answer that last question.

eddddy

hazyjo wrote: »

Do they? AFAIK, the EAs don't get paid unless it completes or maybe if the seller decides not to sell after they've found them a buyer.


Jx

The EA gets a referral fee from the conveyancer.

It appears that the OP is paying the conveyancer's full fee, so presumably the EA get's their full referral fee.

i.e. It's quite likely that around £400 of the fee the OP has to pay goes straight into the EA's pocket.


Edit to add...

If it were me, I would directly ask the conveyancer how much of my payment following aborting was going back to the EA.

hazyjo

eddddy wrote: »

The EA gets a referral fee from the conveyancer.

It appears that the OP is paying the conveyancer's full fee, so presumably the EA get's their full referral fee.

i.e. It's quite likely that around £400 of the fee the OP has to pay goes straight into the EA's pocket.


Edit to add...

If it were me, I would directly ask the conveyancer how much of my payment following aborting was going back to the EA.

Sorry lol, I kinda missed the most important (and obvious) bit that it was via the EA. Never advisable to use them at the best of times! Always find your own solicitor.


It's been a long day...


Jx