Q. My girlfriend and I were just about to exchange contracts to buy a flat in Westoe when we fell out. Because of this we have had to pull out and the seller is furious and has asked me to cover his wasted costs. I have also received a bill from my solicitor, even though I am not buying the flat any more. I realized that we have inconvenienced everyone but do not see why I should pay everyone's costs.
A. When you first instructed your solicitor you should have received a Letter of Engagement setting out the terms and conditions confirming the work your solicitor would do for you. This letter should also say what you will be charged if, as here, the purchase did not progress to completion.
My firm, for example, charge a fixed withdrawal fee of £125 plus vat whatever stage the transaction has reached, but some firms do reserve the right to charge according to the amount of work done and this can result in a substantial bill if the transaction has reached an advanced stage.
Turning to the sellers costs, although from a moral viewpoint you may feel that it would be appropriate to reimburse the seller his costs, from a legal perspective there is no obligation upon you to do so. It is therefore entirely a matter for you to decide according to how you feel about the position.
Should you have any queries regarding this issue or a related issue please contact Keith Swan of Patterson, Glenton & Stracey Solicitors by email at ks@pgslaw.co.uk or by telephone on 0808 231 7043. Patterson, Glenton & Stracey have provided legal advice to the people of South Tyneside for over 125 years. For details of their full range of services and to view previous Gazette articles please log on to www.pgslaw.co.uk.
