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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
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In 2008 i bought a property in Hungary using an introductory

Customer Question

in 2008 i bought a property in Hungary using an introductory estate agency in the UK. the agency said the price i was paying was 30% below the market value and i paid 235,000euros. the property has always been problematical because the rental does not cover the mortgage payments, even though the agency said it would be cash positive. the property is now worth only 105,000euros. the agency introduced a bank who require that i repay the original loan amount so i have a deficit of approximately 130,000euros which i must make up from my own capital (the debt increased because of currency fluctuations). do i have any recourse against the introducing agency? the bank is threatening to send me bankrupt, what is my best recourse.
Submitted: 4 years ago.
Category: Law
Expert:  Alex J. replied 4 years ago.
Hi
Thank you for your question.
Did the agency approach you? Who were the sellers of the property?
Kind regards
AJ
Customer: replied 4 years ago.

the agency approached me regarding the availability of this property as part of a development called Karyoli Gardens, which was being completed by a Hungarian developer of their acquaintance, who were the vendors of the property

Expert:  Alex J. replied 4 years ago.
Hi,
Thank you.
DId they provide you with any literature guaranteeing these returns?
Did you pay them a fee?
Kind regards
AJ
Customer: replied 4 years ago.

i have an Executive Summary from the agency (Choices) where they write: 18% Below Market Value, 8-9% rental estimation, Capital appreciation Year 1 - 15% Year 2 - 12%. they always said verbally these properties were 30% below Market Value

i paid Choices a fee of about £10k for their introduction

regards

Alan

Expert:  Alex J. replied 4 years ago.
Hi,
Thank you.
You could potentially have the following claims against them:
1. Misrepresentation;
2. If you paid them a retainer a claim for damages for breach of the implied term to use reasonable care and skill when providing a service under the Sales of Goods Act 1982.
Did you sign a retainer or any terms and conditions? Do you know exactly what your total loss is?
Kind regards
AJ