Purple Bricks Auction - Buyers Premium

SanityIsAMyth

This is my first post but I really need some advice. I have been trying to sell my house since 2015. I’ve used 3 high street agents and Purple Bricks. PB were the only ones to get offers but they both fell through (partly because of their useless solicitors taking ages). However, I needed a quick sale (house sale is paying my uni fees) so Local Property Expert suggested the auction which I did in April. 
However, I had a note put through the door from a private buyer offering me £15k below the market price (I know that that’s a volatile and unpredictable thing now) but thought I would take the loss. 
However, LPE has now told PB that I have a private buyer (I had asked them to withdraw the property from the market - didn’t mention a buyer) to which I get a phone call from an Oliver Marsden saying I owe £5754 to them and would I like to pay by card. I have £32 in my account and no idea how I’m paying next month’s bills. My buyer is not going to pay the Buyers Premium, and he was told by his solicitor that he has no agreement or contract with PB that he’s not liable. So I am.

How water tight is the contract? Am I looking at paying them nearly £6k for not finding me a buyer and having nothing to do with the sale? Literally at my wits end with this house and feeling pretty suicidal about the whole thing. Please can anyone advise?

greatcrested

What does your contract with PB say? Unfortunatey I don't have a copy.

Once your sale completes presumably you'll have more than £32 in your account?

SanityIsAMyth

@greatcrested Thanks for your reply. This is what PB sent me

I will have more than £32 in the account if/when the sale completes (been let down twice before now and rapidly losing confidence in the whole system) but it’s all ear marked for tuition fees at uni (4 x £9k) plus paying some other debts off. If I have to pay another £6k I won’t be able to finish uni and this year would have been a complete waste of time and money. 

Unicorn_cottage

And where will you live?

SanityIsAMyth

@Unicorn_cottage I’m already renting a flat in the city where I’m at university (just finished my first year). So I’m paying rent and mortgage (although mortgage has a holiday on it). I had a tenant but the previous buyer wanted them moved out, and then he pulled out so I was really stitched up.

yllop1101

I would see if you can negotiate with PB, on the grounds that.
1.They didn't find your buyer.
2. They have no alternative buyers right now. 
3. You can't afford the fees to them on top of the 15k price reduction. 
4. If they don't drop the fees you will pull out the sale and then they'll get nothing and you'll be back waiting for them to find you a buyer again (which, see point 2).

As an aside, I thought PB was a flat fee, where you just pay upfront, whether you sell or not? 

hazyjo

Were you still selling through PB when you instructed LPE? Did you only terminate your contract with PB after LPE got you a buyer? If so, did PB know you were using another agent too?

Who did the private buyer initially view through? (Presuming they had viewed before offering!)

Whose board, if any, was outside your property?

Try not to stress. We'll attempt to help you word something. Maybe they'll agree to a lower fee or payment plan if you have to pay.

eddddy

Are you saying that you want to defer payment, until the purchaser completes - or are you saying you'll be unable to pay, even when the purchaser completes?

If you're prepared to pay on completion, you might be able to get away with saying something like... "The private buyer has made an offer, but I'm not accepting that offer until the private buyer exchanges contracts" - then delay paying until completion.

They're unlikely to take legal action against you in the period between now and exchange of contracts. Although, if the sale falls through, they might decide it's worth trying to sue you for the £6k.

SanityIsAMyth

yllop1101 said:

I would see if you can negotiate with PB, on the grounds that.
1.They didn't find your buyer.
2. They have no alternative buyers right now. 
3. You can't afford the fees to them on top of the 15k price reduction. 
4. If they don't drop the fees you will pull out the sale and then they'll get nothing and you'll be back waiting for them to find you a buyer again (which, see point 2).

As an aside, I thought PB was a flat fee, where you just pay upfront, whether you sell or not? 

Hi Yllop, I’ve already paid PB £1200 as part of the normal selling side of things but the house was then switched to their online auction system. It’s that that has the £5754 Buyers Premium on it.  I will try to negotiate with them but I’m useless at it and just tend to give in. I definitely can’t afford to pay them anymore money. The LPE said she was trying to get in the house yesterday to do a viewing (despite me having no warning and nothing being on the app) but said her key didn’t work? I told her a few weeks back that I had a buyer so could she take it off the market. I don’t know why she was still doing viewings and it was a bit of a surprise!

SanityIsAMyth

hazyjo said:

Were you still selling through PB when you instructed LPE? Did you only terminate your contract with PB after LPE got you a buyer? If so, did PB know you were using another agent too?

Who did the private buyer initially view through? (Presuming they had viewed before offering!)

Whose board, if any, was outside your property?

Try not to stress. We'll attempt to help you word something. Maybe they'll agree to a lower fee or payment plan if you have to pay.

Hi Hazyjo,

The LPE is employed through Purple Bricks - that’s what they call their estate agents that you deal with. I haven’t used any other agents since the High Street agents a few years ago. The PB sold sign was outside the house, but has been there since the previous buyer. They were aware that the sale fell through and didn’t change the sign, but I’m presuming that’s down to Covid 19. My neighbour did a viewing for him - she has a key and let him in. 
Thanks for trying to help - my stress levels are absolutely through the roof. 

SanityIsAMyth

eddddy said:

Are you saying that you want to defer payment, until the purchaser completes - or are you saying you'll be unable to pay, even when the purchaser completes?

If you're prepared to pay on completion, you might be able to get away with saying something like... "The private buyer has made an offer, but I'm not accepting that offer until the private buyer exchanges contracts" - then delay paying until completion.

They're unlikely to take legal action against you in the period between now and exchange of contracts. Although, if the sale falls through, they might decide it's worth trying to sue you for the £6k.

Hi Eddddy,
I will be able to pay as I will have the equity in the bank, but it’s all ear marked for tuition fees. I won’t be able to do my final year so my whole degree would be useless. The buyer is refusing to pay the Buyers Premium as the sale wasn’t through PB so PB are saying that I am liable for it.