Review Contract Dispute
Budget: £20 – £250 GBP
I signed a 8 week sole selling rights contract on 26th August 2021, for a 5 bed HMO in Stockport. When I first approached this company, the original agreement was that they would purchase the property from me within 30 days and they would then sell the property on for a profit. It turns out this was a marketing ploy and that they were really just an online auction house. They attempted to sell the property in an auction however they could not find a buyer that did not meet the reserve price.
Outside of this auction, they contacted another agency to see if they had any prospective buyers. This elongated the agreed process substantially and eventually, they found a buyer on 01/11/2021 who was willing to pay £300,000, (which was eventually increased to £310,000). This was already substantially under the HMO value of £350,000.
After a mortgage valuation, the lender down valued the property to £270,000 due to valuing the property as a ‘House’ rather than a ‘HMO Investment’.
I made a decision at this point that I would seek to withdraw from the property sale. I haven’t done this formally through my conveyancer as I wanted to seek advice first on whether I will be liable for their fee (which the agent has threatened). My interpretation of the contract is that after 8 weeks has passed, I can terminate the contract after providing 14 days written notice without their being a fee.
Can someone provide advice please?
Outside of this auction, they contacted another agency to see if they had any prospective buyers. This elongated the agreed process substantially and eventually, they found a buyer on 01/11/2021 who was willing to pay £300,000, (which was eventually increased to £310,000). This was already substantially under the HMO value of £350,000.
After a mortgage valuation, the lender down valued the property to £270,000 due to valuing the property as a ‘House’ rather than a ‘HMO Investment’.
I made a decision at this point that I would seek to withdraw from the property sale. I haven’t done this formally through my conveyancer as I wanted to seek advice first on whether I will be liable for their fee (which the agent has threatened). My interpretation of the contract is that after 8 weeks has passed, I can terminate the contract after providing 14 days written notice without their being a fee.
Can someone provide advice please?