Apportioned Service charge on purchase, do I have to pay it?

Laurz90

Hey,
I have recieved over a £1000 worth of unexpected management fees which I have paid as can understand the rationale but when I purchased the property the estate agent mentioned the service charge had been paid until 31st Dec so I didnt need to worry about that hence the agreement of the purchase price. Anyway were coming close to completion and I have now got my completion statement which covers pretty much what Ive transferred but they've included apportionment for service charges of £250 that I was not expecting. Do I have to pay this or can I come to agreement with the seller that this will not be paid as I offered a price based on the service charge already being paid until the end of the year? Im just annoyed at all these unknown charges that I am considering pulling out of sale prior to formal exchange on Monday. Help!

bouicca21

It’s customary to apportion the charge.

Laurz90

Thank you for your extremely quick response. I appreciate its usual practice but can this be negotiated?

anselld

Laurz90 wrote: »

Do I have to pay this or can I come to agreement with the seller that this will not be paid as I offered a price based on the service charge already being paid until the end of the year?

Did the seller agree that the offer price included service paid to end of year?

Was that recorded in the memorandum of sale or has that otherwise been communicated to both solicitors?

If it was agreed by both parties there is no reason why the solicitors cannot follow those instructions.

onwards&upwards

Laurz90 wrote: »

Thank you for your extremely quick response. I appreciate its usual practice but can this be negotiated?

Probably not, unless you had it in writing.

G_M

This is not amatter for the estate agent. It's a matter for the conveyancers. It is normal practice, as well as common sense, not to mention fair to both parties, for the seller to pay up to Completion date, and buyer to pay thereafter.



No idea why you'd think the seller should pay for a period when you are the owner.

eddddy

Laurz90 wrote: »

I appreciate its usual practice but can this be negotiated?

Yes - it can be negotiated, assuming you haven't exchanged contracts.

Presumably, the EA was passing on a message from the seller that he/she had paid an advance service charge up until 31st Dec, and that was included in the sale price. (Which is unusual, but OK.)

I guess neither the seller or you told your respective solicitors, so the solicitors assumed that the usual apportionment would apply.

So both parties need to inform their solicitors.


Obviously, you'll have a problem if the seller says they've changed their mind, or claims that they never said that.

GDB2222

I expect we are well past completion, let alone exchange.

G_M

GDB2222 wrote: »

I expect we are well past completion, let alone exchange.

Seems so: ...

I have recieved over a £1000 worth of unexpected management fees which I have paid as can understand the rationale but when I purchased the property the estate agent mentioned.....

xylophone

I expect we are well past completion, let alone exchange.

?
The OP says

Im just annoyed at all these unknown charges that I am considering pulling out of sale prior to formal exchange on Monday. Help!

GDB2222

xylophone wrote: »

?
The OP says

I stand corrected.

If she offered on one basis, then that should be incorporated in the contract, and she should not exchange until it is.