Housebuilder agreed to cover all legal costs - now refusing

ConveyancingConundrum

Background (short version!): I had a pretty unusual situation with one of the big nationwide housebuilders where they had accidentally included a bit of land on both mine and my neighbour's deeds that contradicts one another. Both have been correctly registered with the land registry. The mistake was with our neighbour's deeds not ours (confirmed by the housebuilder).

To resolve this, we have agreed to a financial settlement and the housebuilder will also sign over a small bit of land to us (not as good as the disputed area), and in return we will agree to ammend our deeds to give up the disputed bit of land which will then belong to our neighbours. Our neighbours are also happy with this.

Problem: As part of the offer that the regional managing director made to us over email, they stated that they would cover all legal costs and I accepted this offer. This was also repeated (over email and phone/ in person) multiple times throughout the whole negotiation/ resolution process.

When the contract for the settlement came through, in the T&C's it said that they would cover legal costs up to £1,500. When I got quotes for the legal work that was needed, it all came to more than £2,500. Plus warnings that there might be other legal costs.

When I raised this with them, eventually, many many emails later, they increased this to cover costs up to £2,500. 

However, when asked if they could guarantee that there will be no other legal costs required outside of the work quoted for they simply state that they believe £2,500 is sufficient. When I ask if other legal work will be required who would be liable for these costs, they won't give me an answer and repeat that they feel that £2,500 is reasonable.

Also, one firm that I received quotes from asks to clarify if the housebuilder would be responsible for making an application with the land registry on our behalf to register the deed of rectification and transfer deed. I asked this months ago, and they kept ignoring this question. I've finally pushed for an answer and they have confirmed that they will not be responsible for this. Meaning that this will also be another legal cost that hasn't yet been factored in. When I had previously asked if there was any other legal work anticipated, their Litigation Director said no, even though I had already sent them this question.

I have repeatedly stated that I will ensure all required legal costs are reasonable by providing quotes from a number of different firms or using a recommended firm at an agreed cost, whatever they want. 

Their position is that they believe the £2,500 is sufficient so that's that.

My position is that:
1) It has been proven not to be sufficient! It doesn't even cover the legal work they've told me is needed, ignores the additional legal work that has been raised and opens me up to pay for any unanticipated legal expenses.
2)This was the housebuilders error and I've agreed to a resolution to fix this that all sides are happy with, but I don't want to pay the legal costs to fix their error. The financial settlement isn't much and I wouldn't have accepted if this would need to be used on legal costs.
3) "Sufficient" surely isn't relevant, as I didn't accept an offer based on what they now believe is sufficient; I accepted an offer to cover all legal costs. So the question isn't "what do the team think is sufficient" but "do they think it matches the offer I accepted" and "is it acceptable to change the offer that was accepted".

Question: Is it acceptable for a company to offer one thing in a settlement, have that offer accepted, and then when it comes to the terms and conditions, change this to what they now "feel is sufficient"?

Thank you to anyone who has read so far. Any advice would be much appreciated. This has been an incredibly stressful process!

user1977

Not really anything to do with consumer rights, more of a house-buying query I would have said. What does your solicitor think?

eskbanker

user1977 said:

Not really anything to do with consumer rights, more of a house-buying query I would have said. What does your solicitor think?

In OP's other thread about this on the house-buying board, it's stated that the same conveyancer acted for both neighbours and so now claims conflict of interest, but I'd have thought there's an argument that the conveyancer and housebuilder should work together to resolve the matter at no cost to OP or neighbour, given that the conveyancer at least partially contributed to the issue arising?

Jenni_D

I think the comment still stands - if the OP already has a thread over there then that's where the conversation should continue; this isn't a consumer rights question.

user1977

If the OP is having legal costs covered then presumably they've engaged a solicitor?

eskbanker

user1977 said:

If the OP is having legal costs covered then presumably they've engaged a solicitor?

I got the impression that they were still shopping around, reluctant to commit until cost coverage is agreed?

ConveyancingConundrum said:

I have repeatedly stated that I will ensure all required legal costs are reasonable by providing quotes from a number of different firms or using a recommended firm at an agreed cost, whatever they want.

ConveyancingConundrum

Hi, thanks for the responses. Yes - so far I have only got quotes for the legal work. I wanted to ensure that the legal costs were covered before proceeding.

Sorry if this was the wrong place to post. I guess I was asking more general advice on if it was ok for a company to offer one thing as part of a settlement, have that offer accepted, but then not follow through with what was accepted.

If they followed through on covering the legal costs as agreed this would be resolved for everyone. I think they’re trying to wear me down into covering the costs myself but I can’t afford to.

MeteredOut

ConveyancingConundrum said:

Hi, thanks for the responses. Yes - so far I have only got quotes for the legal work. I wanted to ensure that the legal costs were covered before proceeding.

Sorry if this was the wrong place to post. I guess I was asking more general advice on if it was ok for a company to offer one thing as part of a settlement, have that offer accepted, but then not follow through with what was accepted.

If they followed through on covering the legal costs as agreed this would be resolved for everyone. I think they’re trying to wear me down into covering the costs myself but I can’t afford to.

What happens if you just refuse unless they provide the guarantee to cover all costs?

user1977

ConveyancingConundrum said:

Yes - so far I have only got quotes for the legal work. I wanted to ensure that the legal costs were covered before proceeding.

Solicitors will be used to negotiating a fees undertaking before they start the actual work, you shouldn't need to do the running around yourself.