Withholding of agency fees due to missed completion date

rcast1989

Hi all,

So we are first time sellers and our mortgage fixed rate was ending on May 1st. We specifically required a sale that could be completed prior to this so as not to pay a SVR on our mortgage. 

Estate agents had an offer accepted on 15th march and guaranteed a completion date of Friday May 3rd, agreed with all parties and this was noted in the memorandum of sale. 

Now we later realised after seeking advice that for a south London leasehold flat, anything less than 3-6 months lets alone 6 weeks was ridiculous and any estate agent would have known that full well and should never agreed to a 6 week completion date. 

Now we are finally completing on the sale next week (6th September). I have laid a formal complaint and stated that the SVR rate interest we have been paying at 8% is actually more than the fee the EA was requesting for the sale, as such we are not paying any fees. If the interest had been lower, we would have paid the difference. 

Do people think this is justified ground for total misinformation if the EA set a date on the memorandum of 6 week knowing full well that is was completely unachievable?

propertyrental

No.

No one, not even your conveyancer, can guarantee a Completion date, unless/until contracts are Exchanged.

(and even then.....)

Hoenir

I'd be surprised if the Estate Agents guaranteed anything. The MOS simply included estimated dates that you suggested and the buyer agreed to. 

Gentoo365

No, the estate agent has no control over the completion date.  

They would be very unlikely to guarantee anything.

MeteredOut

Unless the waiver of fees if any guarantee was not met was written into the contract...

Which, I'd bet, it wasn't.

rcast1989

Hoenir said:

I'd be surprised if the Estate Agents guaranteed anything. The MOS simply included estimated dates that you suggested and the buyer agreed to. 

Sorry I should have added, the was a tenanted property , ot would have made no difference to us how long completion would have taken as the rental income would have cancelled out the mortgage fees.

We were instructed by the EA that the buyer required the property with vacant possession and fully vacated ( Including all furnishings) we were requested to meet the completion date, again completely unrealistic advice. 

If we are paying an ea to act in our best interest than advising us to vacate flat and remove tenant prior to exchange was ludicrous ( we know now ) and they should have to answer for it

theartfullodger

rcast1989 said:

.....

Estate agents had an offer accepted on 15th march and guaranteed a completion date of Friday May 3rd, agreed with all parties and this was noted in the memorandum of sale. 

....

Please quote EXACT wording of guarantee and, as it's in memorandum of sale, who is named as the guarantor of this guarantee.  Did the estate agents sign the memorandum of sale please or otherwise acknowledge their liability - and what did it say would happen if the date was missed, please????  

(I wouldn't even have considered this possible - but.... )

swingaloo

The buyers solicitor would have advised them not to proceed until the property was vacant so your EA was correct. No buyer is going to exchange on a property until the tenant has vacated. 

Considering this was a tenanted property then it was never realistic to complete in 6 weeks.

swingaloo

Interestingly you had the same problem in 2019 when you were complaining about being promised a 'guaranteed' fast completion.

propertyrental

Evicting a tenant (unless they receive a significant bribe incentive) can take 2? 3? 4? months or more..

chanz4

welcome to been a business