Mugged!!

32_Briggsy

So recently had an offer accepted on a house after months of looking, great I thought...

After seeing the property on rightmove I thought it was more than worth a visit in person, so I did. Was very impressed and put an offer in, after a little haggling we finally agreed on a sale price. Then I had a call from the estate agent to say "there's a service charge for the parking space to the rear of the property, as its gated access, this will be approximately 200 per year, are you have to proceed" I hesitatanly said yes, but was a little annoyed I was many aware of this by both the estate agents or vendor at or prior to the viewing. Anyway at 200 per year I was happy to proceed.

I did a search for a solicitor to assist in the purchase of the property. Since appointing a solicitor it appears that the freehold property I've agreed to purchase, which is only 5 years old, has a management company involved somehow.

I've received this from my solicitor this week...

"
I hope to be reviewing the papers this week. I do have to tell you though that because there is a management company involved, there will be an extra charge for me to review all of the extra documents. Normally freehold properties do not have a management company involved so there would not be all this extra work. I am checking with my colleague what the extra charge will be and will let you know as soon as I can."

Then this today.

"
Dear xxxx



I have now spoken with my colleague about the extra charges for dealing with the management company. I confirm our fees will increase by a further £225.00 plus VAT for dealing with this extra work.



We will also have to serve a notice on the management company when we complete the purchase, advising that you are the new owner. Our fee for preparing and serving this document will be £40.00 plus VAT for each notice we have to serve (sometimes we have to also serve notice that the property is subject to a mortgage and that may have to be served as a separate notice to the one notifying of a new owner).



Please can you confirm you are happy for me to proceed on this basis.



I will notify you of any further additional fees once I have reviewed the Contract papers, as there may be other fees payable which I will not know about until I have read the paperwork."


I feel mugged by the estate agent and vendor for not making me aware that the property was party of a management company, whereby annual fees would be incurred red and additional fees would also be incurred in the buying process.

Of course I'm expecting additional fees from the solicitor also. But £40 plus vat to send a letter :mad:

Do I have any grounds to put a grievance to the vendor and estate agent of being misold?

babyblade41

32_Briggsy wrote: »

So recently had an offer accepted on a house after months of looking, great I thought...

After seeing the property on rightmove I thought it was more than worth a visit in person, so I did. Was very impressed and put an offer in, after a little haggling we finally agreed on a sale price. Then I had a call from the estate agent to say "there's a service charge for the parking space to the rear of the property, as its gated access, this will be approximately 200 per year, are you have to proceed" I hesitatanly said yes, but was a little annoyed I was many aware of this by both the estate agents or vendor at or prior to the viewing. Anyway at 200 per year I was happy to proceed.

I did a search for a solicitor to assist in the purchase of the property. Since appointing a solicitor it appears that the freehold property I've agreed to purchase, which is only 5 years old, has a management company involved somehow.

I've received this from my solicitor this week...

"
I hope to be reviewing the papers this week. I do have to tell you though that because there is a management company involved, there will be an extra charge for me to review all of the extra documents. Normally freehold properties do not have a management company involved so there would not be all this extra work. I am checking with my colleague what the extra charge will be and will let you know as soon as I can."

Then this today.

"
Dear xxxx



I have now spoken with my colleague about the extra charges for dealing with the management company. I confirm our fees will increase by a further £225.00 plus VAT for dealing with this extra work.



We will also have to serve a notice on the management company when we complete the purchase, advising that you are the new owner. Our fee for preparing and serving this document will be £40.00 plus VAT for each notice we have to serve (sometimes we have to also serve notice that the property is subject to a mortgage and that may have to be served as a separate notice to the one notifying of a new owner).



Please can you confirm you are happy for me to proceed on this basis.



I will notify you of any further additional fees once I have reviewed the Contract papers, as there may be other fees payable which I will not know about until I have read the paperwork."


I feel mugged by the estate agent and vendor for not making me aware that the property was party of a management company, whereby annual fees would be incurred red and additional fees would also be incurred in the buying process.

Of course I'm expecting additional fees from the solicitor also. But £40 plus vat to send a letter :mad:

Do I have any grounds to put a grievance to the vendor and estate agent of being misold?

No, very early on your solicitor has informed you, the EA may not even be aware

I think 40.00 for a letter is pretty reasonable, in my neck of the woods double it and then some would be more appropriate.

Your solicitor has done their job as I can see it and now up to you how you proceed

KatrinaWaves

No because you were told of the issue and asked if you were happy to proceed, and you said yes. You were happy with the £200 a year, it seems the solicitor costs are your main issue, and that’s with your solicitor, £40 is fairly standard for a letter.

You haven’t been missold because you haven’t bought anything yet.

KatrinaWaves

babyblade41 wrote: »

No, very early on your solicitor has informed you, the EA may not even be aware

The EA told them initially, and they said they were happy to proceed!

Bossypants

If you're this worried about paying someone £40 to do a job you need them to do, I suspect home ownership may not be for you...

Sibz

I don't like the idea of management companies, you hear of too many hidden costs... If the seller has been quiet about it - it may just become a bigger issue going forward. Do you know anyone that lives on the estate so you can get a better overall picture of what/who you would be dealing with?

In relation to buying a property these numbers the solicitors charge are pennies - if a £40 charge for a letter etc is enough to sour the purchase do you even want this place enough to proceed? I'd be more concerned by how good and fastidious your solicitor is - they could find/or miss something that could cost you a lot more further down the line.

Tiglet2

Unfortunately, the reason it is advisable to instruct a solicitor to conduct the legal conveyancing is so they can do their due diligence in finding it exactly what you are buying and to provide this information to you so you can decide whether to proceed with the purchase, or not.

An Estate Agent will only advertise a property for sale, based on information the vendor provides. They do not check for accuracy and they routinely don't ask legal questions because they are not legal experts and this is not their job. They are salesmen.

The vendor will obviously know that there is a management company involved for the maintenance of communal areas and the car park, but omitted to mention it to you and to the EA. Caveat Emptor, or buyer beware, is exactly that. It is your solicitor's job to find out all the legal aspects, to raise enquiries of the vendor's solicitor, your job to obtain surveys and inspections and procure information from the vendor on viewing the property and also ask your solicitor to raise enquiries on matters which concern you. A vendor cannot lie if asked a direct question but they and their solicitor can be very vague at times with their responses.

While you can put a grievance to the vendor and Estate Agent, you were not mis-sold. This is exactly what you are paying your solicitor for.

Now you are aware of the situation, it will be your decision whether to proceed or not.

By the way, Notices of Transfer and Charge done on completion are normal where there is a management company involved and the fee is not the solicitor's fee, but the management company's fee and £40 + VAT is typical.

ThePants999

Reduce your offer, if you're that upset about them not telling you this before you put your offer in...

diggingdude

Stop your solicitor doing anymore work, drop the price you are offering a little now you know more about it. If it's accepted great. If not then decide if you will walk away or not

Marvel1

Estate agent gets information from the vendor.

Solicitor finds out any issues.

Job done.

AdrianC

32_Briggsy wrote: »

Then I had a call from the estate agent to say "there's a service charge for the parking space to the rear of the property, as its gated access, this will be approximately 200 per year, are you have to proceed"

So who did you think this "parking space" in a gated car park was going to belong to, and how did you think it was managed?

Since appointing a solicitor it appears that the freehold property I've agreed to purchase, which is only 5 years old, has a management company involved somehow.

Yes, they're the people who you'd be paying the service charge to, in return for which they own and manage the parking space...

Do I have any grounds to put a grievance to the vendor and estate agent of being misold?

What have you bought?
What did you not find out about until after purchase?