Misleading Estate Agent

[Paddy116]

Hi,

My wife and I purchased a property in November 2023. During the process, after having surveys carried out, we were advised that the property required a new roof.

We agreed (through the estate agent) that we were willing to split the cost of the roof with the sellers, however we did not have the cash upfront in order to pay for the repairs. In order to get things moving the agent advised that a retainer arrangement could be made whereby the solicitor holds back the sellers half of the money and transfers it to ourselves after completion.

We agreed to this with the agent and they advised that they had spoke to both sets of solicitors and that it was all sorted (via WhatsApp messages). They also confirmed over the telephone that there wasn’t anything we needed to do on this matter.

Completion roles around and we move in, however receive no notice of the money from the retainer for the roof.

We contacted the agent who stated they had confirmed arrangements with the solicitors, however the solicitors stated they had no record of such arrangements.

The agent has advised they would contact the seller to see if they will still honour the agreement but it seems they are not answering their calls, or are answering and saying they aren’t willing as the agent has advised the seller is not getting back to them on this.

Now I understand that it was naive of me to not confirm the arrangement with the solicitor at the time, but the agent stated it was all sorted and advised they had spoke with solicitors and there wasn’t anything further too do.

We are now £2,950 (total roof cost £5,900) out of pocket. My main complaint is with the estate agent for misleading us on this matter. I have advised them that if they do not resolve it then we will be making a formal complaint with them and then making a complaint via property redress scheme who they are a member of (https://www.theprs.co.uk/ - in order to make a complaint to them you must first complain to the agent themselves and give chance to respond. We have also stated that we will consider small claims court too if the matter cannot be resolved.

Does anyone have an experience of anything like this? What are our chances of getting anything from the property redress scheme or small claims court?

Thanks 🙂

The estate agent does not work for you. They work for the vendor. It is too late now but never, ever forget that in future.

Do you have any of what the estate agent agreed to in writing? If not forget it. You haven't got a leg to stand on. The agent will just deny it. The vendor will either deny it or say nothing. The whole thing will be your word against theirs and the fact you didn't inform your solicitor will not help.

Without some sort of evidence Small Claims will throw the case out. Same goes for the PRS. Unless you have and Email or letter from the estate agent, forget it and move on.

Did you not speak to your conveyancers at the time? It should have been included on the completion statement or arranged as a reduction in the purchase price.

I have WhatsApp messages to state that it was all sorted and screenshots of the agents internal note system where they have noted that they have beeen in contact with solicitors and made the arrangements. So there is some written evidence yeah.

Are they members of The Property Ombudsman or some other regulator? If so, I would ask the estate agent to cover the shortfall themselves and if not, go to their regulator.

https://www.tradingstandards.uk/media/documents/commercial/codes-of-practice/tpo-sales.pdf

I don't understand why the seller wouldn't have just knocked their half of the roof off the sale price if they were serious about going halves?

It wouldn't have been a retainer as such, but a repayment or discount on purchase price. Otherwise you pay stamp duty on the full amount. Did you not confirm the arrangement with your solicitor? EA has no power over the contract.