Solicitors costs doubled!!

Bossyboots

I saw this post at lunchtime but could not log on. At that time I was going to say that you should not accept what they are saying and insist on being sent a fully itemised invoice.

It seems they may now have realised your rights but I am a bit puzzled because in your first post you say they have exchanged contracts and you are completing on Friday. Now you are saying they want you to see the "estimate" before they exchange. I presume that is a typo as a completion statement is usually sent out between exchange and completion.

Make sure you see the bill before you pay. Otherwise, just pay the estimated amount. What I would expect to be included in your basic fee is items like;

applying for and reading local search
correspondence with solicitors and estate agent
telephone calls with other parties
completing all necessary forms
perusing contract, transfer, fixture and fittings and enquiry forms
Effecting exchange and completion

I may not have covered all the basics but if there is anything outside this you need to consider whether it is ordinarily something you would expect to be included in the first quote. I feel the wording here is no more than a ploy for the solicitors to achieve a fee which gives them some profit. Contrary to what people think, there is a lot of work in a conveyancing transactions and the fees charged rarely really cover the costs. The added clause here gives them a chance to recoup that. They would not expect you to necessarily know what the basics are and I think they are using semantics to your detriment.

misterthrifty

That was my misunderstanding. I instructed them to exchange on Friday and assumed this had gone ahead but they were awaiting a document from the vendors solicitors (sent by post)

It seems that it may come down to ambiguous wording that allows them to chuck in extras at the last minute when clients are least likely to argue!

I am very annoyed that they have tried to bully me into promising to pay without the benefit of a proper invoice (which they do not intend providing until after completion) by delaying the exchange and possibly prejudicing the purchase. I intend following this through their complaints process but do you feel I would have a strong case?

Thanks for all of the advice BTW

Bossyboots

I can see no reason for them to withhold their invoice until completion because they have told you the amount. They can only know this if they have worked it out and therefore they must be in a position to send it to you now. I would stand my ground on this and insist they send it to you this week.

Until you know what it says it is difficult to say whether you would have a complaint but I suspect you have. They are professionally obliged to be clear about their costs and my argument would be that although they state their costs include other things a solicitor may need to do, it is not reasonable to argue that you know what that is. I do not therefore think their costs estimate is clear and unequivocal and you can make a complaint on that basis. I really don't understand what these extras can be as for the most part purchase conveyancing is routine. This is a clever little out to make you think their original quote is good and they should not be allowed to get away with it.

You are very welcome to the advice. Sharp practice really annoys me and this is what I think this is.

misterthrifty

I have had some more information from the solicitors. The additional costs are covered under "additional charges" and include:-

Lender administration fee £95
Land transaction fee £75
TT Fee £35
Postage & Copying £20
VAT 102.90

I don't understand the point of providing a quote if "standard additional charges" are going to be added on, that's completely misleading. Also, I didn't take out a mortgage so why do I have to pay a lender admin fee?

Are these costs reasonable? The 1st letter I had stated that the quote covered "the costs for all the work normally associated with this type of transaction"

Bossyboots

Land Transaction fee is probably correct but is a disbursement not a solicitors' cost.
Likewise the TT fee, the amount of which is probably correct.

Postage and copying is a known overhead and should be included in your original estimate. The only exception to this is if there was something excessive which I doubt. I would refuse to pay this.

As for the lender's fee it beggars belief. You must remind them in the strongest terms that there is no lender, hence there should be no administration fee.

Once this is all completed, you must write a letter to the complaints partner at the firm and if not satisfied with their response, report them to their professional body. Overcharging is an offence and charging you for a disbursement not incurred in a transaction is indefendisble. In the meantime do not pay the £155 overcharge.

Please check that the VAT is only being charged on the profit costs. It is not payable on the disbursements.

garysletters

The £102.90 VAT would be payable on £588 of work. See if this matches up with your solisitors costs.
As I posted in an earlier post, your TT would be about right, as would be your Land transfer fee. I agree that postage and copying costs should be included in "usual costs" in the initial quote.

To charge a "lender administration fee" to me sounds as close as I'd like to get to calling a solicitor fraudulent! Unless there's something we don't know.

I have previously had a problem with a solicitor, though not for a house purchase. I tried the Law society, but found that this was basically there for the protection of solicitors. I then found out an address that may have been able to help. (i dropped the issue before taking it this far so don't know how much use they are.
The address is
Office for the Supervision of Solicitors
Victoria Court
8 Dormer Place
Leamington Spa
Warwickshire
CV32 5AE

I got this address a fair few years ago, so it may have changed, however, I've kept hold of the address because I remember how hard it was to obtain, and just in case of this sort of situation.

As said above, try to resolve the issue with the firms senior partner first. i find it hard to believe that a solicitor would try to extort such a small amount of money (in their terms) in such an indefensible way.

If your purchase relies on this bill being paid, then pay what you feel you owe, and if you are forced down the road of paying it all and end up paying anyway just to save the purchase, make sure it is noted on the invoice/cheque/reciept and everywhere you can that it is under duress. This may make it easier to challenge later.......but it may not help so don't pay it all if you can possibly help it.

calleyw

When I had my final bill it was about £100 more expensive than I expected. We where already at our limit on costs so to get an extra £100 added was a smack in the face. It may not sound much. But we struggling and had to fund a lot of costs out of dwindling savings.

It was not a difficult sell that I could see. When we queried it, the extra costs where because it was leasehold rather than a freehold flat. Pardon. I know very little about flats and things. But know that the leashold flats out weigh the freehold flats. And my EA knew it was a Leashold as I showed them the lease I had.

To say I was not impressed could not cover it.

I hope you get it sorted out soon.

Yours

Calley