Land agent Fees - Wanting to increase without prior knowledge

Florrie19

We were quoted 2.5% to sell our plot of land. Valued by him at £100,000 subject to planning. We had to first split the land into 2 plots so that we owned our plot outright. 
Due to this our Land Agent increased our Fee: "In light of out standing issues Could I therefore propose we agree to the following"
3% Fee + VAT PLUS 50% on anything achieved over £100,000.This covers us for likely time & involvement through the planning process"
We queried the proposal as we had no prior knowledge of this 50 % and was given an explanation that it was an incentive for his staff to "achieve as much as we can and effectively fight for every pound"
We replied " Thanks for the email and that does explain the extra work involved. So we are fine with that!"
Subsequently he sold the land for £129000 .
Now as it has nearly come to completion. The Land agent has emailed us again. 
"Regarding Fees, I am happy now to formally agree on matters with you. ( We thought we had?)
"My file is now running at costs and time at over £12000 but equally I am happy to agree with you a figure to be paid only on completion.
We believed that we had already agreed a fee and incentive to cover all work with him and at no time has he informed us otherwise. No knowledge of being on the clock. Nothing.
So ? Can he do this ? We are happy of course to pay the agreed amount no bother but I feel that he is being underhand.
I would be grateful for any advice please?
Thank You!

Florrie19

Thank you to the person who has edited my post and put it into the correct Catagorie! 

propertyrental

 "In light of out standing issues Could I therefore propose we agree to the following"
3% Fee + VAT PLUS 50% on anything achieved over £100,000.This covers us for likely time & involvement through the planning process"

We queried the proposal as we had no prior knowledge of this 50 % and was given an explanation that it was an incentive for his staff to "achieve as much as we can and effectively fight for every pound"
We replied " Thanks for the email and that does explain the extra work involved. So we are fine with that!"

That would appear to constitute a contractual offer and acceptance.

Thank him again, and refer back to your agreement and ask for an invoice based on that.

SusieT

Am I missing something here, is he intending to just charge you £12,000 + VAT? if so it is less that the agreed percentages. If you take 50% of 29,000 that is 14,500 plus 3% it will be a lot more than the £12,000 you have quoted?

sourpuss2021

SusieT said:

Am I missing something here, is he intending to just charge you £12,000 + VAT? if so it is less that the agreed percentages. If you take 50% of 29,000 that is 14,500 plus 3% it will be a lot more than the £12,000 you have quoted?

My guess is that he is asking for £12k + VAT, plus the £14.5k!!

OP, is it feasible that he undervalued the land in the first place, with an eye for the large commission on anything over £100k?

Did you get any other valuations?

Florrie19

He is requesting the 50% of the £29000 and the 3% of the £100000 all plus vat .

A total of £21000. But he is saying that he has booked more time and now wants to “formalise the fees agreement” in order to get us to accept an increase of the 3%. 

I believe I already had an agreement.  Property rental  has highlighted the relative points which supports my view and  I shall take his advice. 

Many thanks to you all for your help! 

Florrie19

All sorted thank you!

Florrie19

I misunderstood what he was suggesting and it’s all sorted nicely!!