Buyer has withdrawn; must I pay solicitor's charges again?

[mehstg]

I've had my flat for sale and have already had to pay my solicitor for a sale falling through. Now a second buyer has decided to pull out. Am I obliged to pay my solicitor again? as 1) I cannot afford it. 2)He has hardly done anything for this latest sale as most info was already to hand 3) Do I have any rights at all like seeking compensation from the buyer that's pulled out? 4) Is there any way I can get a future buyer to give me a guarantee or deposit to avoid any repeat of this? 5) What can happen if I refuse to pay the solicitor's charges?

Thanks for any advice on this!

[tenant29]

I have a similar problem but not paid solicitor yet. The buyer pull out after the his mortgage lender 's surveyor valued the property at 10K less and buyer did not have enough deposit to proceed.

How much did you pay your solicitor on a failed sale ?

[mehstg]

He's asking for 220 GBP and this is only 3 months since I last paid him the same amount. Have you received any advice yourself?

[Poppy]

Of course. Does your solicitor work for free?

There is no comeback against the buyer. You are going to have to swallow it.

You should analyse the reasons for these disappointments. Is something presenting itself in the deeds, searches or survey? Get copies of everything (expect to pay) and find out. Did the buyer not have a mortgage in place?

Remember that solicitors and other such professionals are not only paid for the work produced but substantially for their knowledge (ie knowing how or licensed to do the work in the first place). If you refuse to pay your solicitor’s charges, he will sue you and that may result in a county court judgment against you.

This is the unfortunate way that the English/Welsh property buying system works.

May I share a couple of buying experiences with you:

I paid for a survey £500. It came back with expensive faults. I tried to renegotiate the offer price - but the vendor didn't want to know. I had to walk away without my £500 and without a house.

I paid for a survey £500 on a different house. It came back fine. After several weeks of phoning the agent and vendor asking for a contract and other related documents, that’s when I was informed that the vendor had simply changed his mind and didn’t want to sell. I had to walk away without my £500 and without a house. By this time my solicitor also said I had to pay for the admittedly small amount of work he had done.

Your experience is not new. You just need a better opportunity and some luck.

[mehstg]

Thanks for replying but is this just your opinion or actual law as financially I cannot 'swallow it' ?
Is there anything to protect the vendor from such occurrances? If not why not?
I realise solicitor's don't work for free but there should be a minimal charge in such circumstances as I would like to continue to use them.
And yes the buyer did have a mortgage in place.

[Poppy]

Put simply, there is no law covering the parties before exchange of contracts.

[tenant29]

He's asking for 220 GBP and this is only 3 months since I last paid him the same amount. Have you received any advice yourself?

I would be willing to pay a similar amount ( about half of full charge if the sale had completed) . But if you intend to keep property on market until sold , you should ask solicitor to keep his file open and not to bill you until the flat is sale completed.

[SteveP]

You may find it useful to visit the law society web site.
http://www.lawsociety.org.uk/choosingandusing/payingforservices.law

Your solicitor should have told you how his fees would be calculated when you engaged him. Assuming he did then so long as he has charged you in line with what you were told then he has done nothing wrong. You agreed to his terms after all.

If he did not tell you then you may have a legitimate complaint. You could ask for a renumeration certificate if you think the bill has not been properly calculated. See here http://www.lawsociety.org.uk/choosingandusing/payingforservices/gettingbillchecked/certificates.law

However, the figures you quote are very reasonable so I suspect you will have to pay what he has billed.

[mehstg]

Thanks for the info. I just wish the vendor had more protection in such cases as there are too many time-wasters out there who should be penalised and accounted for when pulling out of a property purchase!

[SteveP]

I just wish the vendor had more protection in such cases as there are too many time-wasters out there who should be penalised and accounted for when pulling out of a property purchase!

Do remember that buyers also get caught out by vendors changing their minds and they may have paid for much more than a vendor, searches, surveys, etc.

The homebuying reforms may, only time will tell, go some way to reducing the number of failed transactions as the vendor will have to have a sellers pack prepared before marketing the property. That pack will answer most of the questions a buyer has and so buyers are less likely to discover things which cause them to withdraw an offer later.

It will, of course, involve more expense for vendors initially.

[jeffrey]

Do remember that buyers also get caught out by vendors changing their minds and they may have paid for much more than a vendor, searches, surveys, etc.

The homebuying reforms may, only time will tell, go some way to reducing the number of failed transactions as the vendor will have to have a sellers pack prepared before marketing the property. That pack will answer most of the questions a buyer has and so buyers are less likely to discover things which cause them to withdraw an offer later.

It will, of course, involve more expense for vendors initially.

One year on, HIPs falling to bits before our very eyes, and - yes - it will certainly be more expensive for vendors when/if HIPs start. I doubt that failed transactions wil decline.

[cmbhappy]

Hi guys,

my solicitor offers me the opportunity to pay £35 upfront. If the deal falls through for any reason, I have no more to pay, aside from disbursements. This arrangement has already paid off in my favour.

[jeffrey]

Hi guys,

my solicitor offers me the opportunity to pay £35 upfront. If the deal falls through for any reason, I have no more to pay, aside from disbursements. This arrangement has already paid off in my favour.

Yes- the "wasted costs" insurance is available and quite good value. I'm surprised that more people don't purchase it.