Agent deceit / fraud?

D

daviep

Guest
Hi,

I'm looking for advice on how I should proceed with the following matter.

I instructed a member of a local property company to source and purchase a property in the UK for around £50k in April 2004. The owner of the company was a 'friend of the family' and I had dealt with this company previously. I therefore had a high level of trust in them.

The agent got back to me a few weeks later and told me that he had indeed found a suitable investment property for £50k. He advised that the investment property was being sold with tenant and that his commission for this service would be 2.5% of the purchase price (plus legal fees). I agreed and proceeded with the purchase of the property for £50k.

It has come to my attention recently through UK Land Registry figures that the above property was in fact purchased for £40k and not the £50k that I had paid. In the financial statement from the agent he clearly states the purchase price as £50k. The property was never in the agents name and he was simply acting as an intermediary in the deal. To add insult to injury in this affair, I have had to evict the tenant and completely renovate the property. I was told by the agent that the tenant was paying rent and the property was in good condition when I purchased it.

Legally standing, what is my position with this matter? What is the best and most diplomatic way to approach this?

Thanks in advance,
Colm
 
Presumably you used a solicitor for this transaction? What did s/he advise you in relation to the matter?
 
Yes, how did you purchase the property without signing documents- contracts etc?
 
'legally standing' and 'diplomacy' do not necesarily go hand in glove!
 
ClubMan said:
Presumably you used a solicitor for this transaction? What did s/he advise you in relation to the matter?
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I have not approached the solicitor in the UK about this matter as yet. I am waiting a financial statement from them for the transaction before I proceed. The problem with the solicitor is that they also represent the local property company in their dealings in the UK.
 
I don't understand why you have not approached the solicitor. S/he was working on your behalf in conveyancing this property and you should be guided by him/her in relation to any legal aspect of the property transaction. In particular if you have concerns about the legality of the transaction of the exchange of funds then you should definitely contact him/her urgently. Did you meet him/her when buying the property and signing the paperwork etc.?

Perhaps there is a reasonable explanation for the difference between what you paid and how much the property actually cost (e.g. charges, taxes etc.)? Perhaps the statement that you requested will clarify this?
 
Vanilla said:
Yes, how did you purchase the property without signing documents- contracts etc?
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My lender paid the requested purchase price of £50k into a solicitor client account. I was then sent the appropriate land registry documents to sign but never received or signed any contract documentation with the purchase price. I assume that the local property company signed this on my behalf.
 
Maybe I'm missing something here but the whole transaction sounds a little bit suspect to me. Are you sure that you actually own the property now!? Maybe you need to get another solicitor on the case?
 
When you say local -was this property company in the UK? If so, I would immediately hire a UK solicitor to look into this and give them all the relevant paperwork. If it was an Irish company, hire an Irish solicitor immediately- time is of the essence, if there is dodgy dealing going on, you will need to be at the top of the queue to have a chance of getting your money back.
 
Would the lender be able to help? Would they not have procedures to ensure that they are only lending the actualy purchase price?
 
If there was a mortgage involved and the mortgage was to be charged on the UK property. But was there?
 
ClubMan said:
Maybe I'm missing something here but the whole transaction sounds a little bit suspect to me. Are you sure that you actually own the property now!? Maybe you need to get another solicitor on the case?
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Yes I'm sure I own the property as I have a copy of the Land Registry form.
 
The property company is an Irish company and has it's office here but I have just checked them out online and the company is registered in the UK?!? I have just spoken with an Irish solicitor and he thinks it is a cut and dry case of fraud (i.e. telling me that the purchase price is £50k when it was in fact only £40k). Nice little earner as well as 2.5% commission!
 
RainyDay said:
Would the lender be able to help? Would they not have procedures to ensure that they are only lending the actualy purchase price?
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Yes, perhaps. I'll contact them when I have a few more facts on the matter.
 
Have you engaged the new solicitor to deal with this or are you still going to try the original conveyancing solicitor? Where was the latter solicitor based? Have you reported the incident to the Gardaí, UK Police and/or [broken link removed]?
 
ClubMan said:
Have you engaged the new solicitor to deal with this or are you still going to try the original conveyancing solicitor? Where was the latter solicitor based? Have you reported the incident to the Gardaí, UK Police and/or [broken link removed]?
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Basically I would like my £10k back that was 'stolen' from me and compensation by way of lost rent due to dodgy tenant. I would prefer to come to an 'amicable' agreement with the local property company and settle the matter with as little fuss as possible. Failing that I intend to initiate civil and possibly criminal proceedings against them.

How would you recommend that I deal with this, given that the owner of the company 'was' a friend of the family?
 
daviep said:
How would you recommend that I deal with this, given that the owner of the company 'was' a friend of the family?
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I personally would forget about the friend of the family bit. If they are friends with another member of the family and if it does transpire that they did screw you over then you need to do whatever is necessary to rectify the situation regardless of any other relationships involved. I think that people have already recommended the best course of action - get another solicitor on the case and be advised by them.
 
ClubMan said:
Have you engaged the new solicitor to deal with this or are you still going to try the original conveyancing solicitor? Where was the latter solicitor based? Have you reported the incident to the Gardaí, UK Police and/or [broken link removed]?
Click to expand...
To answer your questions, the original conveyancing solicitor is based in the UK. Once I have received a financial statement from them I will request an explanation for the transaction. I am undecided whether to stay with them as there may be a possible conflict of interest as the local property company use them for all their transactions. I will keep the Gardaí out of it unless the local property company are refusing the cooperate.

Would you recommend posting a question regarding the matter to the IFSRA?
 
There will be plenty who will think that you should report this company to the authorities, but it is your decision.

If I were you, I would gather as many facts as I could, present them, and outline what
compensation you are demanding, with everything written down and explained.
It is your decision that you would be happy with compensation and not reporting them
to the authorities, and this is doing them a favour.
Be very firm that if you do not get satisfaction, that you will report them, and be
prepared to carry that out. That is the only way that you will sound convincing,
Bring an accountant / solicitor / official looking friend if you need backup.

You should not out of pocket by that much, because of the risk of embarassing
your family
 
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