Estate agents massive fees

Suspect99

Suspect99

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I have a young friend who stays with his single mother. They recently went through financial trouble (due to his mother being ill) and unfortunately could not keep up with mortgage payments and the bank put the house up for auction.

Now a company contacted them and told them they can stop the auction and get the house sold, then provide them with any profits. I found out about it after the papers had already been signed and the house was basically sold.

Here's the bad part: They are charging all sorts of fees as add-ons (renovation fees, transfer duty(which I believe the buyer should pay?), bond registration fees etc.
In addition, they state that they will claim, 40% of the profit after expenses as their fee for stopping the auction.

To me this just screams of a bunch of sharks looking to screw a old lady who doesnt know any better out of what little money she has left. Its too late to do anything now as she has already signed and says she doesn't have the energy to fight it.

Has anyone heard about anything like this, and is this normal practice?
 
Suspect99 said:
I have a young friend who stays with his single mother. They recently went through financial trouble (due to his mother being ill) and unfortunately could not keep up with mortgage payments and the bank put the house up for auction.

Now a company contacted them and told them they can stop the auction and get the house sold, then provide them with any profits. I found out about it after the papers had already been signed and the house was basically sold.

Here's the bad part: They are charging all sorts of fees as add-ons (renovation fees, transfer duty(which I believe the buyer should pay?), bond registration fees etc.
In addition, they state that they will claim, 40% of the profit after expenses as their fee for stopping the auction.

To me this just screams of a bunch of sharks looking to screw a old lady who doesnt know any better out of what little money she has left. Its too late to do anything now as she has already signed and says she doesn't have the energy to fight it.

Has anyone heard about anything like this, and is this normal practice?
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If the house goes to auction how much is she liable to get out? Seems to me that 60% of profits is better than nothing.
 
Thought there's a law that stops them from grabbing more than 7.5% or is that just common courtesy?
 
Nick333 said:
If the house goes to auction how much is she liable to get out? Seems to me that 60% of profits is better than nothing.
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I suppose you could look at it that way.
I don't know why she didnt just put the house up for sale herself, through a reputable estate agent company, at worse they'll charge 5%.
 
Suspect99 said:
I suppose you could look at it that way.
I don't know why she didnt just put the house up for sale herself, through a reputable estate agent company, at worse they'll charge 5%.
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5% :crylaugh: 7.5% plus vat is the norm for estate agents pal
 
This is one of those companies that watch the sheriff's auction lists for desperate people. They often drop pamphlets into the mail boxes of the houses going on auction promising all sorts. What the desperate people dont realise is that the agreement between them (the owners) and the "sharks" is a sale agreement, where the sharks will snap up a bargain at the expense of the ignorant owner. They are worse than tow truck drivers.
 
TRZ214 said:
This is one of those companies that watch the sheriff's auction lists for desperate people. They often drop pamphlets into the mail boxes of the houses going on auction promising all sorts. What the desperate people dont realise is that the agreement between them (the owners) and the "sharks" is a sale agreement, where the sharks will snap up a bargain at the expense of the ignorant owner. They are worse than tow truck drivers.
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That's my feeling as well. It's probably all legal. But companies like this are scum.
 
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