emmadoll

Hello to all, I wonder and hope there are people on this forum that could give me a little advice and help on our current sittuation we find oursleves in.

Basically we have a business in Lanzarote and want to move back to the UK, we contacted the local agent and put it up for sale with them. Its a trespaso by the way.

Within 3 days of being on their books we had an offer and accepted. We were then told that the new owners who are leaving the UK wouldn't be completing for 8 weeks. A little longer than we would have liked and it would have been nice for this to be made clear at the time of the offer but we went with it. At this time the agent rushed down to make us sign a kind of contract aggreeing that we are putting it on for sale with them, states their fees and mentions an unrefundable deposit (of which, apparantly they can keep half for themselves?!) taken in the event of the buyer pulling out. The latter part is not clear at all as it says they normally take 10% and then later it states it is usually 5000Euros. The actual figure we believe the buyers paid was 3400Euro (which wasn't 10% of the agreed fee), we only know this amount as the agent told us this in person.

This made completion date the 30th of October. Nearer the date we were then told it would be a week early, then back to the original date, then about 2 days before the 30th that the buyers plans had gone wrong and it would now be 2 weeks after this date. We decided the best thing to do would be to give them this time and not take the deposit although we were informed that we would at this point be within our rights to do so. 2 weeks passes and with very little contact, it was then said to us that the buyers were coming out the following week and we were to expect at least half of our money. Well that was last week and when the buyers paid us a visit they were still uncertain when they were going to complete on our business and mentioned it could be one or two weeks more possibly longer. They were more concerned about themselves and there deals in the UK going sour and using this as an excuse and we should feel sorry for them. I fully understand this is what happens and I did sympathise with them, thing is though this is also what they were doing to us and I have neglected to mention we gave up our long let accomadtion and moved into a crusty apart/hotel as they were the only ones around that took dogs. We'd had very little contact from the agent about the changing of dates etc and didnt know now when we were supposed to be going home and setting up there and all that is involved with such a move. They had also cost me a new business venture in the UK as without their money I was unable to buy stock from abroad for xmas.

So the day after this meeting they came back with the agent and started proceedings with the fact they were not happy that we didn't seem to care about their situation. After this was respectfully resolved they then dared to say they thought the business had been run down a little since their offer 10 weeks ago with very poor reasoning. This was knocked on the head by the agent and they agreed they still wanted to buy the business and were pressed for a proper comletion date. This was then to be the 4th of decemeber with a compensation amount of 1000euros for the extra expense etc for completing 5 weeks late.

On the wednesday they went home, the thursday we get a call from the agent saying they have changed their minds and wont be buying after all. I was not surprised but of course this wasn't very good news at all. I then pressed the agent for the deposit to be given to us, he kept saying it was the co-owner that was in charge of accounts and couldn't get hold of her. We'd been asking for this money since the previous meeting, now they had pulled out we were well within our rights to ask for the said deposit. Finally on the friday the owner of the agents rings me and states she would have to conduct an investigation into the return of the deposit as the potential buyers wanted it back stating the business had been run down as their reason. The owner of the agents also said she couldn't come and talk to me until the following Tuesday as she was busy with clients. I of course was not happy with this and said it was very unprofessional (to which she bit my head of). It seems now both the owners of the company are coming down to see us on Monday, not that they have told us of course, we had to hear it second hand from the agent. Also these buyers from the UK are buying another business close by, the same has happened to them with the changing dates non completion etc except she pulled the plug on it herself on Thursday saying she wanted their deposit and to re-advertise and possibly waiting till January was not good enough.



So now my question is to either an estate agent solititor or anyone who has had similar problems in spain is, given that when this investigation is carried out and their claims are unfounded, what rights do the agents have with regards to holding our deposit and to keep half of it? After all this hassle and the agent helping them to mess us around?

I also add that this is probably the biggest estate agents on Lanzarote and that the contract is in English and still not clear as to what it is actually for.

It is clear that when they dont have the funds to purchase either of the businesses they reserved, and dont know when they will have it, that they are trying to pull out after 3 months of wasting our time, costing us dearly, that they are then making excuses so as to not forfeit their deposits

michael

My advice is simply to set out what you have here before a local lawyer who specialises in property conveyance. Without charge they should analyse your situation and if feasible (recovery) offer to act for you.
The fee of course will be mentioned: you can barter. Lawyers are like accountants. We hate paying them but in fairness, if they reduce my tax or recover funds in excess of what I have refunded, they are good value for money. Sounds to me like doing it on your own, when there's obviously underhanded behaviour afoot, is living on (unrealistic) hopes. Just a thought!

greg

Hi emmadoll,

FYI: I deleted your other post, since it would be rather confusing to have two threads about the exact same topic.

As for your situation:

It's important to be objective when taking this situation into account - most of your story is VERY emotionally experienced. Unfortunately, in business this is not rewarded. I suggest you keep your emotions at home to your partner/family.

Now as to your options:

1) You have legal options (as you have legal rights). Nevertheless, without knowing about what you signed it will be difficult to get or give appropriate legal advice on your situation. Your options will depend on what exactly you signed.

2) As for the agent and the buyers: I have written extensively about unscrupuluous agents as well as buyers (and owners!) in my eBook. All i can tell you is, ask yourself: What is most important to you????

If you want to leave and get all this over and done with, then be prepared to pay the price (such as accepting a lower amount for the sale).

If you want to "fight" the agent, know what you are getting yourself into before you lay out a game plan.

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emmadoll

Thanks for the replies.

I dont agree that our story is emotional, I was simply trying to lay out the facts of what has happened. Yes, this is a business deal of course, but when you own your own business and your future is linked solely to the sale of it, how can you deferentiate?

I am being objective to as such trying to find out and be fore-warned before our meeting on Monday, our legal rights.

A) under Spanish law, does the agent have a right to a portion of your deposit?
B) can we be made to forfeit it just because the buyer has fabricated lies to put the blame onto us in order for them to get their deposit back with no actual evidence that proves their 'concerns' are true?

Of course 'a' might depend on said contract, but no matter what the contract stipulates, is it even worth the paper it is printed on, written solely in English?
The contract is quite laughable, if you can call it that. So the safe assumption to be made in this scenario is that there is no contract.

greg

I don't mean to attack you when I say you are being emotional, I was simply giving you a tip - which I see you haven't taken on board.

The law is one thing, the contract another. Whether or not a judge would decide on one thing or another is beside the point. I tried to give you a tip in my previous post, which I see you haven't taken.

As far as I can tell you have prepared for a sale (moved into a hotel thinking you would close the deal soon) and now you are stuck. That's the point. Or am I missing something?

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ChrisNerja

If you were selling a property it would be quite straight forward as there are rules and a process set up in the civil code which covers deposits.

As you were selling a traspaso, I think Greg is correct, it really is down to the contracts that you and the "buyer" signed and also the contract with the agent.
Traspasos are notouriously difficult as there are four parties involved, the agent, the buyer, the seller and the landlord.

emmadoll

Thanks for the replies.

Since my original post, it transpires that the buyer paid their deposit by credit card and are now trying to claim it back from the card company...unless (as they actually DO still want to buy, hence proving that their reasons for calling the deal off WERE lies) we now give them until the 15th Jan to complete. But no doubt, that date will come and go again and they will still retract their deposit from the credit provider.

Would a credit card company simply refund just because they request it?!!

I have never come across such a ridiculous situation.

Surely the agent is then liable to give us the half it states in the contract, regardless of if it has to come from his own pocket?

All advice welcome!

greg

Have you seen proof of this "credit card" deposit payment?

Yes

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ChrisNerja

Yes,
In theory they might be able to claim the payment back. The credit card company will make a decision on it based on their policy. Again, this would not happen if it was a property as under the civil code deposits are not refundable but this does not cover traspasos.
And again, whether they could claim it back or whether you could claim half from the agent very much depends on the paperwork signed at the time.
If you really feel agrived, I would suggest seeing a lawyer, but the costs might turn out to be more than you might recover from the agent/buyer.
My advice would be either to re-negotiate or re-market.