(VIC) Fixed fee conveyancer charging extra for delay in settlement

Discussion in 'Legal Issues' started by Mlee17, 23rd Sep, 2020.

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  1. Mlee17

    Mlee17 Well-Known Member

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    Hi all

    I have a fixed fee conveyancer which i have been using and today i found out in the statement of adjustments that they have charged an additional fee of $110 due to delay in settlement.

    My issue with this is they never onced metnioned that they will charge this even when upfront I have made it clear that any additional fees to be incurred are disclosed/communicated to us.

    Our settlement has been extended 3 times already.

    Shouldn't these be included in the fixed fee?

    I did see that there is a condition in the conveyancer contract that they have the right to charge $11 for every 6 minute spend - my question is how additional time will they have actually spent other than just writing emails for extension of settlement?

    Thoughts anyone?
     
  2. JDM

    JDM Well-Known Member

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    We don't charge for extensions, however most law firms and conveyancers do. $110 for three settlement extensions sounds extremely reasonable.

    Correspondence to extend, updating figures and PEXA takes time.
     
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  3. Mlee17

    Mlee17 Well-Known Member

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    How much time will these take? My understandig is PEXA won't be involved yet as we request for extension a few days before settlement. There are no update of figures required for the statement of adjustments as it is purchase of a residential land and the vendor has requested that figures will have to be from original settlement date.

    I don't believe the above combined will even take 1 hour? However, please do educate me as i do not know what goes behind the scenes. Happy to be corrected.
     
  4. JDM

    JDM Well-Known Member

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    Could have been anywhere from 30 minutes to 2 hours depending what was involved. If they have said it was an hour, I believe that is reasonable.

    The PEXA workspace still needs to be updated with the new settlement date and the parties have to accept it. There would also usually be corro surrounding the reason someone wasn't ready.
     
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Was it in the agreement you entered into?
     
  6. Mlee17

    Mlee17 Well-Known Member

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    I had delayed settlement with them before - they have not once charged me this delay in settlement fee. I have seen the emails drafted by the conveyancer to ask for settlement - It is just a 2 liner.

    The most recent request to delay settlement was me drafting it and the conveyancer copying pasting it.

    On another note, can you PM me and provide me a quote for buying and selling a property?

    I am considering changing legal advisors due to this.

    Cheers.
     
  7. Mlee17

    Mlee17 Well-Known Member

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    It was and i am aware of this. However, prior to signing, i was advised by the conveyancer that this will only be used only when significant amount of additional work is required.

    I can't see how drafting an email will lead to an hour of additional time.

    I am also a risk consultant and we work on projects basis and complete timesheet - emails and templates update def do not take 1 hour. I have also used them multiple times
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Case closed? You could fight it, but what is your time worth?
     
  9. Mlee17

    Mlee17 Well-Known Member

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    note the statement that only used when significant work is involved?
     
  10. thatbum

    thatbum Well-Known Member

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    I would have considered three settlement extensions easily to be in that category.

    Take a step back here - you’re complaining about $110 because there’s been three extensions AND the fees were disclosed to you?
     
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  11. Mlee17

    Mlee17 Well-Known Member

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    Not at all. I am complaining with the fact that at each extension i have asked whether they are any fees that will be incurred for delayed settlement. Not once the conveyancer said that I will be charged extra due to this delay settlement.
     
  12. qak

    qak Well-Known Member

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    $110 is trivial, move on.

    From their perspective - apart from what @JDM mentioned, it isn't just 'sending an email' they had to receive the instruction to delay again, obtain your file, potentially review contract for implications of extensions, and document all this as well, return file.
     
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  13. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Conveyancing is a highly regulated process. You might just be sending an email, but the conveyancer is doing a lot more you don't see, with significant consequences if things go wrong. After 3 extensions I'd say they've been more than entitled to an extra $110 (which in business terms covers cost for about 30 minutes of someone time).
     
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  14. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    You could dispute it. And expect to pay more...$110 is minutes not hours of support