URGENT HELP PLEASE!!!! Solicitors query - Can I get out of this?

[punkypossum]

Thanks Davy, that's been really helpful, I'll let you go home...I just need to figure out how to find out what I am actually liable for, as unfortunately nothing about terminating the contract is mentioned anywhere. Heyho, we'll see how it goes...

 

[Crankarm]

I would contact the solicitor first thing tomorrow morning and tell them you've changed your mind and no longer want them acting for you.

However you have signed a binding agreement with them. There is no cooling off period when instructing solicitors unless it is written into the contract. Bigtwin is pretty much on the money so won't repeat his post.

I would be as apologetic as possible say you really didn't understand the contract even though you signed it and your mum has now looked at it and says it's very onerous. You could also say you feel the charges/fees are rather high which they might reduce rather then risk losing your business.

You would have been better to shop around, not for price primarily but for finding a solicitor who is not compromised by a conflict of interest as this cosy arangement seems to be estate agent/mortgage advisor/solicitor all together. You instruct a solicitor or licensed conveyancer in a property transaction to act for YOU and only you in my mind. I would run a mile from any estate agent/mortage advisor/solicitor menage a trois as they will only be looking out for their own cosy interests NOT yours.

Likewise with your mortgage advisor is he a broker or lender? If a broker ask him how he is getting paid in the transaction? Commission or fixed fee and has he searched whole of market to get you the best deal or is he tithed? Personally I would do the leg work myself and approach lenders direct. Keep all the parties separate don't be taken in by the speel that is better to have everyone under the same 'roof' so to speak. IT IS NOT. Better for them maybe. A house is a large purchase the largest perhaps you will ever make and with it will come certain legal and financial obligations and liabilities. You want to know exactly where you stand before you buy. A good property solicitor or conveyancer should explain the whole process to you and answer any questions without fobbing you off. If there is a difficulty with the property or transaction that affects you they will not allow it to continue without it being resolved which is very important and why you need your own solicitor or conveyancer.

If this place Countrywide get difficult ask for their complaints procedure and the body who you might complain to if still unhappy (actually the SRA - solicitors regulatory authority). But if less than 24 hours has elapsed I think it unlikely that any charges to get out of the contract would be excessive. They might even call it quits or they might exercise a lien which means even if you instruct some else they can claim their fee from you on completion with the costs of your chosen solicitor.

I remember recommending you approach HSBC for a mortgage quote as they happened to be doing quite good deals for those first time buyers with reasonable deposits a couple of months ago and good comment form the financial press on their mortgage products. Did you approach them?
(I have no interest with HSBC).

 

[punkypossum]

Thanks crankarm, I know I messed up on this one, funnily enough I read the small print on everything else (insurance, mortgage, etc) - and they all have cooling off periods. I did check out which and how many lenders my advisor checks and where his fee comes from and did a lot of research into rates on money supermarket, etc (including looking at HSBC and talking to my own bank). The quote I've got, although not HSBC, is pretty much what I expected (in fact slightly better) and weighing up the options and incentives I'm quite happy to go with it.

The only one where I missed the vital bit on the back was the solicitors, which turns out to be the most difficult one, so yes, I screwed up and you all have to suffer for it with my panic posts, sorry! However, the solicitors were not pushed on me, they just suggested it as the whole house buying thing was happening faster than expected and I didn't have one lined up, plus, the fee estimate that I was verbally quoted by the advisor matched the one on the front of the paper, which I was ok about. Therefore, it seemed to make sense just to use them, which now clearly proves to be a big mistake which I might end up paying for - reading the reviews on the web it's not only the cost I'm worried about, but also the quality of service...

But yes, after all the advice on here, I will give them a call first thing in the morning and try my best to get out of it, according to the law society website, there should be something in the document about terminating the contract, but unfortunately this is only a should, not a must and I'm not waiting for an introductory letter from them to see if that gives any details as sending that would probably just be added to the charges!

(And no, the advisor does NOT work for the estate agent, although in my particular case, the estate agent happens to be part of the countrywide group, but that was pure coincidence. And he is on a fixed fee, not commission)

 

[Globalti]

Our in-house solicitor seems to have gone very quiet here! Patrick?

 

[Aperitif]

He's still got his ear stuck to the pillow RR!
Good luck punkypo. The housewarming party will put paid to this anxiety - I'm sure! Interesting read too.

 

[punkypossum]

He is probably in bed like most sensible people at this time!

I found something interesting on the web though re the telegraphic transfers, apparently solicitors are acting unlawfully if they charge more than the amount the bank charges + vat and a small admin fee of about £5. As a chaps transfer (although expensive)as a rule does not cost more than £30 quid maximum, £46 seems rather steep, so I might have found another bargaining tool if they are being awkward....

Then again, these seem to be governed by Council for Licensed Surveyors, so the rules might be different...

 

[punkypossum]

He's still got his ear stuck to the pillow RR!
Good luck punkypo. The housewarming party will put paid to this anxiety - I'm sure! Interesting read too.

Bit too interesting for my liking!!! Didn't plan having to fight solicitors in the process of buying a house!

 

[dellzeqq]

So the £608+ vat is to line their greedy pockets then... Most of those fees arent actually that much, but by the way they are ripping you off on the TT fee for example, and it is a stupid amount they are charging you, I can see they will charge more!

Anybody done a Land Registry search recently? I have. It's not that expensive....

 

[punkypossum]

P.S: Does anybody know if an estate agent is classified as a retailer? Apparently, if I sign a contract without the people I'm entering the contract into present, then it comes under distance selling, i.e. 7 day cooling off period. However, if it is done on retail premises, this does not apply.

 

[asterix]

Wow! Overnight drama!! I know what I classify estate agents as and it isn't polite. As for solicitors, even if it costs a little extra to give Countrywide the heave-ho it sounds like money well spent to change to a professional you feel comfortable with.

 

[Bigtwin]

A word of warning here.

£600 profit costs for doing a full and through conveyance is not an outrageous fee, and there is an element of "get what you pay for" with this stuff. As I say, IF that £600 is comprehensive.

The add-ons - searches etc, are variable to a degree because sometimes they throw up things that need further investigation, sometimes not. These charges are fixed by other agencies and the solicitors do no get a "cut". The costs of doing these are in the £600 quoted.

There will always be a clause in the contract saying that the costs increase - solicitors' regulations say there must be. It's rare, but sometimes things turn out to be a can of worms with property, and sorting them out takes time and money. There's not a lot solicitors can do about this, it's the way our antiquated land system works, and there are invariably several parties involved - other solicitors, surveyors, banks, etc etc.

What they should do however, is keep you fully informed as to how things are going, and what costs are mounting.

If you get a cut price service, you are going to get what you pay for. There are lots of short cuts that can be taken, things not checked, enquiries not followed up and bottomed out, and so on. This may no matter to you if it's a cheap new build property, as the risks are fewer. But if you are buying a £1m old manor house on a private estate, you may take a different view.

Also check the liability insurance position of your legal services provider. It may look tempting to use someone working out of their bedroom for £200 a pop, but when they screw it up and you end up with a massive bill for something on the house and another to sort it all out properly, dipping into a solicitors Professional Liabiloity insurance suddenly seems better value for the extra £400 at the outset. Solicitors must by law have at least £3m of cover.

 

[punkypossum]

That's my point - that fee is not comprehensive - we are talking almost £500 of add-ons, plus the searches. Just rang consumer direct and they confirmed that there is no cool off period, if they let me out of it, it's a good will gesture!!!

And obviously I'm not planning to use some weird back street solicitor - the only good thing about them is that if the sale should fall through, I don't pay. But as I'm paying double to start off with, that doesn't really help either....

 

[Bigtwin]

That's my point - that fee is not comprehensive - we are talking almost £500 of add-ons, plus the searches. Just rang consumer direct and they confirmed that there is no cool off period, if they let me out of it, it's a good will gesture!!!

And obviously I'm not planning to use some weird back street solicitor - the only good thing about them is that if the sale should fall through, I don't pay. But as I'm paying double to start off with, that doesn't really help either....

That's plain wrong. You have an absolute right to terminate the retainer. You are not locked in, subject to cost etc already incurred per my first post. It has absolutely nothing to do with goodwill.

 

[punkypossum]

Hooray!!!! I've managed to get rid of them for an admin charge of £50, which I feel is probably the best £50 I ever spent! That will teach me not to read small print in the future!!!! New solicitor sorted, the one that came recommended by my friends, price gone down to £671 all fees included (apart from the searches, but they will check if they need doing anyway with the HIP only dating back to April).

Phew!!!! Might be able to get some sleep now!!!!

 

[Bigtwin]

Hooray!!!! I've managed to get rid of them for an admin charge of £50, which I feel is probably the best £50 I ever spent! That will teach me not to read small print in the future!!!! New solicitor sorted, the one that came recommended by my friends, price gone down to £671 all fees included (apart from the searches, but they will check if they need doing anyway with the HIP only dating back to April).

Phew!!!! Might be able to get some sleep now!!!!

You can't use the April Hip searches - madness. Aside from anything else, if you have a mortgage lender, they won't have that!

Hips are an utterly stupid waste of money brought in by a government that had no idea what they were doing, against all advice. They simply increase costs. Another issue perhaps.