Has my estate agent overcharged
My estate agent's terms of business has conflicting information relating to the commission payable and has been signed for a number of months by both parties.
It states the commission rate is 1.5% plus VAT, however it then goes on to say that the amount payable based on the asking price is £2497.50 inclusive of VAT.
The estate agent has written in the amount incorrectly and the figure they quoted turned out to be exclusive of VAT and now we are due to exchange, my budget has been impacted.
Can I make the estate agent honour the original figure in the terms of business?
Got a feeling that the agents may be entitled to their fee but got another feeling that you should consult a lawyer. The obligation to pay VAT seems to be an overriding one.
Usually the agents account is paid by the solicitor out of the proceeds of sale so check that you havent already authorised them to pay it automatically. You could try paying the amount in full and final as your understanding suggests and hope that they dont argue with you. At the end of the day they have made a mistake and I work on the basis that estate agents dont need to be seen to be bullying the consumer in these cases.
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