Estate Agent closed down advice needed

Jacko78_2

I sold my house last Friday and when I went to visit the estate agents the previous day who had sold the property I found out that they had since closed down a week or so earlier. This left me in a bit of a worry and after a few phone calls I took the day off work and arranged to meet the buyer in person to hand the keys over. My solicitor then informed me she could not get in touch with anyone from the estate agents and agreed to send me the fee which had been arrranged (£1400). I do not know why they closed down but heard the owner had been taking money from tennants and not paying the landlords etc. I have placed the money into an account and will not touch it for a few months. I am just wondering if anyone knows where I stand should they get in touch and demand the money, bearing in mind all the hassle I went through on the day of the sale? I have lost the contract we agreed to and cannot remember if anything was in there regarding the handing over of keys etc. I was never informed by the estate agents regarding problems or closing down. Any advice appreciated.

maninthestreet

The EA is entitled to his/her fee, as they introduced the buyer of your house to you. Your solicitor was unable to contact the EA to arrange payment of the fee, so probably you should wait for the EA to contact you and ask for payment.

SquatNow

If the EA has shut up shop and done a runner don't pay the money.

Set it aside. If you pay the EA the money they'll add it to their "Stash" and it will be gone. If you're going to be asked for it it will be by the administrators trying to clear up the mess.

Better to delay and give it to them so some of the victims can be repayed than pay it now and watch it vanish.

maninthestreet wrote: »

The EA is entitled to his/her fee, as they introduced the buyer of your house to you. Your solicitor was unable to contact the EA to arrange payment of the fee, so probably you should wait for the EA to contact you and ask for payment.

Are you the EA in question?

Strapped

Technically, yes, you do owe the fee still, but whether anyone will/can make you pay it is another matter. Your contract probably stated that the fee became due on completion, but obviously it would be better if you had a copy to refer to Personally, if your solicitor has tried to contact the EA to make payment, I'd keep a record of that, and do exactly what you're doing ie leaving the money set aside somewhere to pay when (if) it becomes necessary. (Your contract probably stipulated a penalty for late payment and/or interest, but if you can demonstrate that your solicitor attempted to pay, then you probably would get away without paying this - although there's a risk there that you might have to pay it too).

david29dpo

Correct. I had this and kept the money safe for nearly 7 months until the admin people finally got in touch. They were pleased i kept it, so it went to the right people.

Jacko78_2

Well the EA owner as been in touch asking to come to some sort of arrangement. She offered to knock £400 off which i thought was strange seeing how she is entitled to the money? Anyway i said i would meet her halfway and she is considering it. She said she as sold the business on but it all sounded like a pack of lies to me. Anyway would be happy with half back for all the messing about. IIll let you know her reply!

maninthestreet

Jacko78 wrote: »

Well the EA owner as been in touch asking to come to some sort of arrangement. She offered to knock £400 off which i thought was strange seeing how she is entitled to the money? Anyway i said i would meet her halfway and she is considering it. She said she as sold the business on but it all sounded like a pack of lies to me. Anyway would be happy with half back for all the messing about. IIll let you know her reply!

If the business has been sold on, the new owners of the business should be paid the fee, not the old owners of the business - the fee is owed to the business, not to a private individual.

chickmug

maninthestreet wrote: »

If the business has been sold on, the new owners of the business should be paid the fee, not the old owners of the business - the fee is owed to the business, not to a private individual.

Good observation in that the money is owed to the business but vital this is checked in original contract. You must ensure this is the case and not that the money is owed to one or more individuals.

jamie304

Whoever you pay be sure to get a signed receipt on headed paper with the Estate Agents company name on. If you pay less than the original fee, get a declaration that the account has been settled in full.

Incisor

Jacko78 wrote: »

Well the EA owner as been in touch asking to come to some sort of arrangement. She offered to knock £400 off which i thought was strange seeing how she is entitled to the money? Anyway i said i would meet her halfway and she is considering it. She said she as sold the business on but it all sounded like a pack of lies to me. Anyway would be happy with half back for all the messing about. IIll let you know her reply!

Looks tempting:eek::eek:. Don't fall for it Get her to submit a bill through your solicitor first. If she does that and she is not the owner, she will at least provide evidence of fraud, and your solicitor can deal with it.

Otherwise, don't pay her, because you will have a job recovering the money off her and proving you paid and you will still owe the whole amount to the new owners of the business, or worse still to a liquidator.

Debt_Free_Chick

Agree - whatever fee you agree to, the EA should send the invoice via your solicitor. That way, you've got proof and no-one (e.g. administrators) can come back to you later.