Estate agent and conveyancer - issue / question.

[TonyRPH]

We have just sold our property (STC).

When we initially signed up with the estate agent, we were handed an estimate for conveyancing provided by company "X".

Following an agreed sale, the estate agent's representative then spoke to my wife, and asked if we wanted to proceed with company "X".

EDIT above line should have read "proceed with getting a quote".

My wife said yes - and we received a formal quote from company "X" for conveyancing.

Along with this quote, we also received all the initial forms, ((TA6, TA7, TA10 etc.).

We have now changed our minds about this conveyancer, but without signing any agreement, they now want to charge us £98 +VAT just for sending this quote and associated forms.

This sounds like sharp business practice to me?

Can they really get away with this?

The quote they provided has the following clause:

"Should the transaction not proceed to completion then my charge will be a proportion of the above total charge, the amount depending at what stage the transaction fails but there is a minimum charge of £98 plus vat of £19.60 for file matter creation, including all data input and initial letters".

But given we only accepted an initial estimate (verbally, via the estate agent - which differs to the quote provided) can they really do this?

Surely they should have sent out a quote, received our acceptance and then proceeded to send out all the forms?

Edited by TonyRPH on Wednesday 8th June 17:17

[mr rusty]

If your wife said "yes" to the estate agent, and the conveyancer sent you a quote, I do not think you have entered into a separate contract with the conveyancer yet. In my mind their quote is their offer. I would just respond and say "thanks for your quote. we have not entered into a contract with you and will not be paying any fees to you. If you think otherwise, please send us proof of our acceptance of your contract"

Unless there are Ts and Cs in your contract with the estate agent that change the situation.

[Captain_Morgan]

Highly likely that conveyancer x and estate agent y are both part of company z and in there t&c’s this charge is included.

That said if the agreement to proceed was given verbally and remotely then distance sales kicks into force and you have 14 days to back out.

I hope once reminded of that you’ll be okay

[OutInTheShed]

Is the written quote the same as the first estimate?

My experience of big 'cheap' national conveyancing operations was very bad.
Proper solicitors are shabby enough of course.

The flip side might be that there is an advantage in your estate agent and conveyancer co-operating.

[Gareth79]

Captain_Morgan said:

Highly likely that conveyancer x and estate agent y are both part of company z and in there t&c’s this charge is included.

That said if the agreement to proceed was given verbally and remotely then distance sales kicks into force and you have 14 days to back out.

I hope once reminded of that you’ll be okay

Also I doubt it would be within the Consumer Contract Regulations to bury a fee for producing a *quote* in the terms for an estate agent though?

I imagine the £96+VAT is probably the commission given to the agent, which kicked in when OP said yes they want to proceed? I don't know if it applies to conveyancers, but for solicitors I used the commission was stated within the paperwork (it went to some agency website I found them through).

[Captain_Morgan]

Gareth79 said:

Captain_Morgan said:

Highly likely that conveyancer x and estate agent y are both part of company z and in there t&c’s this charge is included.

That said if the agreement to proceed was given verbally and remotely then distance sales kicks into force and you have 14 days to back out.

I hope once reminded of that you’ll be okay

Also I doubt it would be within the Consumer Contract Regulations to bury a fee for producing a *quote* in the terms for an estate agent though?

I imagine the £96+VAT is probably the commission given to the agent, which kicked in when OP said yes they want to proceed? I don't know if it applies to conveyancers, but for solicitors I used the commission was stated within the paperwork (it went to some agency website I found them through).

Is it a fee for producing a “quote”? Have they pre-filled parts of the forms & charging for work to date, is it a non-refundable booking fee?

Only the op with access to the contracts knows, that said my main point was the distance sales aspect and again at present only the op knows.

[lornemalvo]

When they say "Transaction" do they mean the house purchase? If that's still going ahead they could have problems due to their wording, which does not refer to potential termination of their services

[TonyRPH]

As it happens - no agreement (verbal or otherwise) was given.

Two estimates were provided, and the estate agent's representative asked if we wanted a quote.

We received a quote through the post, along with a contract to sign (this contract was accompanied by all the additional forms (TA6,7,10 etc.) which resulted in some initial confusion, knowing we had not entered into any contract).

Nothing had been returned, and I asked the conveyancer (via email) a question about their service, and issued a follow up email expressing the intent not to use their services.

This was met with the threat of a cancellation fee.

Reading their contract (which was never signed or returned!) highlighted the 14 day cancellation clause, even though there was nothing to cancel.

We now believe that the estate agent may have been overzealous in stating that we were going to engage this conveyancer as the memo of sale is laid out with this conveyancer's name.

We believe the matter is now settled.

[alscar]

Glad its settled although your third line did suggest that your wife had in fact verbally said yes ( to the company being engaged ) - although still a bit cute to then try and charge you for what became only a quote - would a verbal yes even count as a contract start -not sure but academic now.
I sold a house for a relative recently ( Poa ) and was asked if I wanted quotes from 2 entities - I said yes and both quotes arrived in minutes but went with the more traditional Solicitor and was very glad I did.

[mattyprice4004]

The company asked your wife if you wanted to proceed and she said 'yes' - how is that not agreeing to use their services as per your last post?

[TonyRPH]

Proceed with getting a quote.

Badly worded on my part.

We would never enter an agreement without knowing the actual costs first.