Conveyancer shocking charge and mistake

Do you have an ABN and registered for GST?
If not, you cannot charge for GST.

 

It is a shock because
1) she just contacted the agent, talked for an hour and charged $490 without consulting my friend first
2) she just talked to the tenant for half an hour and charged $245 without consulting my friend first

I already called Department of Fair Trading for my friend today.
I was suggested to write to her first.

 

I am registered for GST.

 

Your friend is taken for a ride here.

 

Keep as updated as to what happens

 

UPDATE

My friend (vendor of the deal) talked to the buyer (who has signed the sales contract) for help.
The buyer asked his solicitor for legal advise.
The buyer's solicitor provided an email template to my friend (for him to send to the $490/hour conveyancer)

Dear ___

I note your tax invoice is excessive and unreasonable.

Your costs disclosure *attached disclosed a fee of $XXXX inclusive of GST for:

1. Review the land contract
2. Review put and call option agreement
3. Prepare land valuation report on both residential unit and shop front
4. Provide legal advices and coordinate with relevant parties and government authorities

No other significant works were carried out and at no point did you advise me of a change of your fees nor did I approve you incurring any additional fees.

The tax invoice is unreasonable and not payable.

If you do not reduce your tax invoice to $XXXX as agreed and disclosed, I will be lodging an application with NCAT to have your costs assessed.

I hope to avoid this course of action and trust you will act promptly.

 

That was good of them.

 

Life lesson：
There is no real enemy in life

Round 1 (sales):
my friend + $490/hour conveyancer VS buyer + buyer's solicitor

Round 2 (dispute on conveyancer's charges):
my friend + buyer + buyer's solicitor VS $490/hour conveyancer

 

How bizarre that your friend would ask the buyer for help!

 

It is not bizarre.
It is a verbal promise offered by the buyer.

In early July, my friend wanted to sell, and the buyer wanted to buy.
But the $490-per-hour conveyancer suggested my friend to wait (until after September this year) in the hope that the buyer will offer more (say 40%-60%).

The buyer then asked my friend for a friendly discussion in a nice cafe.
After that friendly discussion in a nice cafe, the buyer offered the following
1) increase the offer by 6%
2) if my friend ever needs help, the buyer does his best to help

Note: the buyer is a very famous/wealthy builder in the area where my friend's investment property is located
Note: 2) is verbal, but he keeps to his promise and helped my friend to fight the $490-per-hour conveyancer

 

I think its very bizarre. Why doesn't your friend get some proper advice on all this? There's a lot of money at stake.

 

UPDATE

My friend wrote email to the $490/hour conveyancer.
The conveyancer refused to budge (even a cent) and emphasised that her professionalism has increased the sale price by 6%.
My friend has applied to NCAT last night.

 

Wow. How did she she come up with that?

 

The $490-per-hour conveyancer ordered a valuation of the property and the valuation is 4% above the buyer's original price.
The $490-per-hour conveyancer then suggested my friend to postpone the sales until the end of this year and asked my friend to set the sale price to 40% above buyer's offer price.
This has made both the buyer and my friend anxious.
The buyer was worried about missing the deal and my friend was worried that the buyer might just walk away.
So the buyer met my friend in a coffee shop and agreed on 6% above the buyer's original offer price.

The $490-per-hour conveyancer claimed that the 6% increase is due to her professionalism so she is entitled to charge my friend $22,000+

 

Your friend should be getting legal advice. Have they?

 

I know someone who can provide legal advice .... they will be $490/h.

 

UPDATE

My friend engaged a solicitor.
The solicitor wrote an email to the $490-per-hour conveyancer and offered $7000 as settlement amount.
The $490-per-hour conveyancer lowered the bill to $18000.

The solicitor then asked the tribunal for the next hearing in 14 days.

An independent 3rd party will be engaged and a fair price will be provided for the works done by the $490-per-hour conveyancer.

If that amount is lower than $7000 offered by the friend, the $490-per-hour conveyancer will be asked to accept.

 

why would they offer $7k?

 

At $490 per hour, the conveyancer must be the best in the country, presumably.

 

I'm confused - we've gone from leases to a sale of property?
And the conveyancer reckoned that the 6% price increase was due to their actions?
Are conveyancers allowed to charge sale commissions (as REA need - presumably a statutory requirement - to have selling agency agreement signed)?