Nix and Mike

The purchase of an investment property recently fell through.
The bank supplied us with a letter stating finances not approved and it was within the finance approval period stated on the offer to purchase.
We did not initiate anything with the conveyancing lawyers, although we had to state a lawyer on the original offer to purchase (law here).
A week later, we got a $700 bill from the lawyer !!!!

My questions:
* As we did not have financing approved, surely the lawyer should not have done any work yet?
* As the lawyer received no written notification from us to commence any work, could he still bill us?
* What are our "rights" under the law?

Any assistance with info will be greatly appreciated.

Nix

Rudi

Have you called them and asked them about the bill? Often they will start some local searches etc for you - but I have always been contact first to check what is needed etc and they have acted only after I have instructed them. Legally, to withdraw from the sale I think they would have had to contact the other party on your behalf, but that certainly wouldn't cost $700!!! It does seem a bit steep.

Love

Rudi
x

Nix and Mike

Rudi - we have contacted them, and they were very vague about what work had been done, but said "fair work for fair pay". As we were not sure of our "rights" in terms of who they take initial instruction from, we did not push the topic. I want to know the facts and then I willl call them back - knowledge is power.
I have done some searches on the internet as to WHEN you incurr the legal costs, but cannot seem to get a definitive answer. Surely they should wait until the sale is a "done deal" before commencing the work.Especially in this climate when there are many a contract not going through.
Or is this just a ploy to make money....and if we query with a little knowledge we will get the bill negated?

Nix

ABCDiamond

We had the same problem in NSW. We put a property up for sale, but no one was buying, so we took it off the market.

The conveyancer, who we had put down on the paperwork as being one we would use, billed us $750.

We negotiated, and refused to pay them, (my form of negotiation ). Three years later we still haven't paid and they haven't chased.

Nix and Mike

I have a feeling this is EXACTLY what is happening with us......I think they are trying their luck and cannot push it by law.
I just don't want to get a bad credit record by not paying the bill......but I also don't want to be taken advantage of ! And I don't know who to contact to find out what is "legal" or "right" !

THANKS for the post......given me some hope....

Nix

chaval

we pulled out on building and pest and didnt have to pay...apart from the B/P cotst..tell the lawyers you'll report em to queensland law soc for a breach of ethics...they might reconsider - also you might wanna check but they might have to give you an estimate of fees and costs etc.

Also..in reality as alot of sales fail on b/p a reasonable lawyer would really start pulling off searches etc until after the time period for the two inpsections to be complete and approved - r in other words when it goes unconditional.

also...ask em what quantum meruit means in legalese...

google the QLS...easy enough.

Cheers

ps...this isnt leagal advice and not meant to be acted upon...(gotta get that in phew)

Dorothy

Tell them you want an itemised invoice before you will consider paying. And then contact the Qld Law Society to find out whether the charges are legit.

You won't get a bad credit rating by not paying if you have queried the fee. They can't just send a bill saying "pay me" without explaining what you're being charged for.