All Topics / Help Needed! / Having a trouble with a solicitor

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  • Profile photo of MarucoMaruco
    Member
    @maruco
    Join Date: 2005
    Post Count: 48

    This is about a solicitor I used to purchase a house in QLD.
    The solicitor I contacted put me under an inexperienced girl who was not even a solicitor.
    I call her “N” from now on.
    [Mistake 1]
    The first IP I wanted had active termite problems.
    N told me that I would have to spend $2000 ~ $3000 every a half year to treat that.
    As I contacted the realestate agent, he got upset and explained that once I put a barrier around the house, which is $2000 ~ $3000, it will last about 10 years, so what N said was rubbish.
    [Mistake 2]
    I terminated the contract, and the solicitor team took all the money I put for the title search to cover their own fee.
    I moved on to another property.
    N gave me a wrong stamp duty estimate cost.
    [Mistake 3]
    After a building inspection, the front balcony floor needed an urgent repair.
    She gave me an estimate repair cost of $20,000.
    When I spoke to the realestate agent, she got upset and said it would be only around $5,000.
    N didn’t check the size of the balcony. After the realestate agent’s call, N changed the estimate repair cost to $8,000.
    [Mistake 4]
    I asked her to ask the vendor to repair the balcony.
    She said “you can’t do that”
    But later I found out that I could or at least I could negotiate the sale price. The contract was subject to inspections. Here I lost a big money.
    [Mistake 5]
    The vendor could not settle on the settlement date because he could not release his mortgage.
    He asked me to extend the settlement date. I agreed. But my lender said they have to charge me the penalty fee to set another day.
    N asked me to pay for it.
    I refused and asked her to ask the vendor to pay for it. She said, “I don’t think so.”
    But I insisted. I was ready to settle, but he wasn’t. Who was at fault?
    [Mistake 6]
    N asked me whether I would agree to release the deposit held by the realestate agent. I said “no”.
    N said “that will accelerate to move up the settlement date.” encouraging me to do such a risky thing.
    [Mistake 7]
    N told me that she tried to recover their professional costs from the vendor due to the extension, but the vendor refused.
    I asked her whether I would get charged if I agreed to extend the settlement date, and her answer was “probably not.”
    When it settled on 7/June/05, they sent me a bill for the extra professional costs due to the extension.
    I sent a complaint to the solicitor (her boss).

    After a while, the firm sent me the details of the incomings and outgoings. The balance was 0. (2 weeks ago.)
    I assumed that they decided not to charge me for the extra cost.

    Today N called me and said,”It’s about your outstanding payment.”
    I said,”I sent a complaint to your boss. And I received a letter with all the details and the balance was 0. I don’t owe any money to the firm.”
    She said her boss solicitor would call me shortly.
    But he didn’t.

    What should I do?
    Does contacting to the office of Fair Trading help me?

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    Hi Maruco,

    sounds like quite an ordeal, what country was this in? I’m just confused why you were trying to get building inspection advice about termites and balconies from a solicitor? Or even worse, an inexperienced girl who was not even a solicitor (whatever this may mean!!!)

    We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
    [email protected]
    phone 0412 437 582

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    Oh sorry, I miss read the first line of your post, you did mention that it was in QLD.

    We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
    [email protected]
    phone 0412 437 582

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Nothing worse than being under an inexperienced girl, especially during a complicated real estate transaction.

    You need to discuss the entire event with Dept of Fair Trading and then make a decision as to whether to proceed or not, and how.

    You don’t need me or anyone else to tell you to find another solicitor for your affairs.

    good luck
    cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
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    selling motels in NSW

    Profile photo of MarucoMaruco
    Member
    @maruco
    Join Date: 2005
    Post Count: 48

    Thank you for the reply.
    Why did I use the inexperienced girl?
    When I had to terminate the first IP contract because of the termite problems, they sent me a report of money transactions.
    I saw everytime I spoke with this solicitor on a phone for a few minutes, they charged me more than a hundred dollars because of his high rate $195/h.
    So I was scared to get charged thousands dollars for just one conveyancing job. So I kept going back to N. Her rate was $40/h or somewhere there.
    But after a few times of her mistakes, I sent a complaint to the solicitor and asked someone who was more experienced. I was a first time investor on my own and needed proper advice and guidance.
    The solicitor said that she was actually very experienced (lier!!).
    I didn’t want to make troubles, so kept quiet.
    But it cost me a lot.
    When I protested to pay for the penalty fee to my lender asking N to ask the vendor to pay for it, she said “you can terminate the contract.”
    I said, “I don’t want to terminate the contract. I want to settle. I am ready to settle. I want to settle now! Today!I spent so much money and time for this property.”
    N laughed and said, ” you can’t settle because the vendor cannot release the mortgage. You can sue the vendor.”
    I asked whether I could win if I sued him.
    N said, ” I don’t know. I’m not the solicitor.”

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    Originally posted by thecrest:

    Nothing worse than being under an inexperienced girl.

    I agree!

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Maruco

    I don’t think there is much you can do. Just don’t use them next time and put it down to experience.

    You shouldn’t be asking solicitors for estimates of repairs etc. You should work this out yourself and instruct your conveyancer on what they should do. Saves time, money and you can be sure of the estimate if you get it yourself.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of hmackayhmackay
    Participant
    @hmackay
    Join Date: 2004
    Post Count: 197

    Hi All,

    Just goes to show that you must check out your team before you engage them. I guess that there will allways be some horrors in all professions.

    I have had two bad experiences with solicitors in Brisbane.could it be the hot climate up there!!!!

    hrm

    Profile photo of xenaxena
    Member
    @xena
    Join Date: 2005
    Post Count: 12

    Hi,

    I had a similar situation (but not as bad as this) on a recent settlement (I was purchaser)
    * solicitor handed file to clerk
    * 5 days before settlement, I had not heard from them, phoned solicitor to see what was going on
    * “girl” started by telling me she had a cold, husband/kids had cold – sorry but I dont care, I jsut want my property settled
    * she stated she had not heard back from my current lender (ie. who were to organise release of funds from old mortgage) – they had sat on the documents
    * as it takes longer than 4 days for discharge documents to be prepared, settlement was delayed by 4 days (vendor had right to charge me interest but did not, fortunately)
    * on settlement day, as it was related party transaction, my solicitor was responsible for having an independent vaulation to give to OSR, but she forgot to do this – all 5 parties at settlement were sitting around for an hour while she got this from my lender (if my lender had elected not to give this to her, settlement would have been further delayed)
    * there were a few other stuff-ups as well

    Although this wasn’t a disaster, the lesson I learned was that even though you are paying them money to execute the settlement, you still have to be on top of the process and not rely 100% on anyone, ie. chase people up, check and double check, take notes of conversations, keep copies of everything, make sure lender/solicitor/real estate is doeing what they are supposed to be doing.

    Office of fair trading is a good starting point, how about the law society in your state also.
    As soon as they get wind that you are reporting them for their incompetence, they may just give you your money back.

    Hope this helps

    Cath

    Profile photo of MarucoMaruco
    Member
    @maruco
    Join Date: 2005
    Post Count: 48

    Thank you everyone.
    If the solicitor contacted me, I would say “let me talk to Department of Fair Trading.” and see how it goes.
    If they didn’t, it means I don’t have to pay the extra, so I will just let it go.
    Thank you.

    Profile photo of MarucoMaruco
    Member
    @maruco
    Join Date: 2005
    Post Count: 48

    Terryw.
    The reason why I got the estimate repair cost from the solicitor was that the solicitor arranged the building inspection and the inspector sent the result to him (or N).
    The inspeciton was done only on the due date for the inspection (subject to inspections) and I heard the result only at 3pm.
    I was panicked.I had to make a decision whether I should terminate the contract or go ahead with it.
    I thought that I didn’t have time to call up to get another estimate repair cost from another source.

    Yes. I learnt a lesson here. I am not trying to recover the fee I paid to them which was about $1,400. But I just feel absolutely unfair that they are charging me the extra $660 because the vendor could not settle in time.
    Even though the vendor was at fault, I still have to pay?

    Profile photo of sgibsonsgibson
    Member
    @sgibson
    Join Date: 2005
    Post Count: 6

    Hi Maruco,

    I’m confused…don’t you just get charged a standard fee for the conveyance? i.e. $300 for a standard settlement. I find it a bit hard to believe that they were charging you for each phone call!

    Steve G

    Profile photo of MarucoMaruco
    Member
    @maruco
    Join Date: 2005
    Post Count: 48

    It was my first time to buy IP, so I don’t know how it is like normally.
    If the conveyancing job costs only $300, I was really ripped off. (and they are asking more?!)
    This firm had all the records of incoming and outgoing calls with charges.
    I was getting so many calls from the firm a day.
    My parents said, “we never got so many calls from solicitors when we bought houses. Everything was taken care of by them. What’s wrong with this solicitor?”
    I am very scared of buying another house now….
    What could I do when the vendor could not release his mortgage? What options did I have?

    Profile photo of craigsedcraigsed
    Participant
    @craigsed
    Join Date: 2004
    Post Count: 37

    Hi Maruco,
    I’ve gone through the purchase and sale of quite few properties, and have never been charged for phone calls. It was either a pre-agreed total price, or a pre-agreed total price plus or minus incidentals (which didn’t include phone calls).

    I have really only had two times when I have lacked confidence in my conveyancer – one was when I bought a property in QLD, and the other was when I sold a property in QLD! They do have their own way of doing things…….

    Craig.

    Profile photo of carrcarr
    Participant
    @carr
    Join Date: 2005
    Post Count: 10

    If you really feel agrieved stop messing around and go to your states law institute and lodge a formal and documented complaint.
    Make sure your complaint is fully documneted with dates times places names etc .

    You fell into the trap of allowing “inexperienced “people give you advice ” before .
    Even With the best of intentions, the folk here wont and cannot accept reposibility for the advice they give.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Miho

    Hope you got my latest email.

    Would you like to PM or email me the name of the lawyer as I know most of the solicitors in the area you are talking about.

    Also a telephone to the Qld Law Society would probably not go astray. Happy to give you the telephone number.

    Cheers Richard
    [email protected]
    http://www.yourstatefinance.com

    IP funding and US property finance
    our speciality

    Richard Taylor | Australia's leading private lender

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