Estate Agent Fees

alan27051953

Hi and thank you for accepting me to the forum, I sold my house recently and have just received the breakdown of deductions from my account from my solicitor. I used an online Estate Agent the agreed price was £1495 including vat,whenI checked the statement I have been charged £1790, I have queried this with the Estate Agent and firstly they said it was an extra fee that they have charged me for not using their recommended solicitor for the sale of my property,they were hundreds of miles away from me, so I used a local Solicitor. I then asked them to send me an invoice of the monies I have paid them, they emailed it to me but they have now changed the figures so it looks like I have paid VAT to make the figure up to £1790 I hope that everyone can understand my explanation. I would appreciate any advice or comments on what I should do about this,!

M2808

Have you got the initial agreed price in writing somewhere? Does it confirm inc. VAT?
Can you find in any documents that they would charge you more if you didn't use their certificate or that the initial quote included a 'discount' on the assumption that you would use their solicitor?

eddddy

You need to look at the contract terms that you originally agreed to - they will almost certainly state the fees you have to pay.

If you signed up online, you would often tick a box to say that you had read them and agreed to them.

If you didn't keep a copy at the time, you could go back and look at the terms on the agent's website now - but it's possible that they might have changed since you signed-up. (You will be bound by the terms when you signed-up, not the current terms.)

alan27051953

Yes it states £1495 including vat and that there would be a fee if I did not use their appointed Solicitor but they did not state the amount, this is basically a licence for unknown slow solicitors to get work by paying a fee to the estate agent, if the client does not play ball and use the solicitor the estate agent does not get the fee , so takes it from their client
In my case I instructed my solicitor that the estate agents fee was £1495 including vat but on completion day they deducted £1790 from my account which I only found out about yesterday and now they have doctored the invoice so it looks like they have charged me vat. My question is this ethical? Is it legal and what can I do to get the money back?

alan27051953

Thanks for the reply yes £1495 inclusive of vat

lisyloo

You could certainly ask them to take the VAT off as you have proof it's inclusive of VAT, however that might not dtop them charging a fee as it sounds like you were aware there would be a fee just not how much.


Can you clarify your complaint as you appear to have been aware there was a fee.


Is your complaint that you weren't told the amount? (begs the question why didn't you ask - just saying, don't shoot the messenger)


Or that the fee is too high?

eddddy

alan27051953 wrote: »

My question is this ethical? Is it legal and what can I do to get the money back?

If you have paid them more than you contractual agreed to, you should ask for the difference back.

If they refuse to give the money back, the route forward would be a claim through the small claims court. You would start with a 'letter before action'.

See: https://www.gov.uk/make-court-claim-for-money


Alternatively, the EA must be a member of a redress scheme. If you follow their complaints procedure, they might order the EA to pay you the money.

G_M

I suspect the unspecified fee for not using their solicitors may well be deemed an unfair term.


Since I assume their fee will be deducted from the money your solicitor receives from the sale, and paid by him to the EA, why not speak to you solicior.


Indeed, instruct him how much to pay.

SmashedAvacado

Did you confirm with your solicitor the amount they were to pay the agent? If not, the solicitor should not have sent it to the agent.

jo03gra

I was quoted by EA 1% when selling my fathers home. My solicitor asked me to double check the figures as my EA contacted him directly with an invoice showing 1% + VAT

My husband queried this stating if he was charging VAT he would need to provide a VAT receipt. He couldn't and so he didn't charge the +vat on the final fee.

Now I'm selling my house and similar issue, his invoice states 1% + vat. I have informed the solicitor that he is paid the 1% only unless he provides a VAT receipt.

SmashedAvacado

if someone quotes 1% i am pretty sure that English law dictates that in a consumer transaction such as this, this is an inclusive of VAT price

They need to say "exclusive of VAT" if its not.