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Ed Turner
Ed Turner,
Category: Law
Satisfied Customers: 148
Experience:  Director and Consultant Solicitor (Self-Employed) at Ed Turner LLB Limited
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I was employed as a mortgage advisor up until 2yrs ago when

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I was employed as a mortgage advisor up until 2yrs ago when I decided to go self employed. I joined a Network called the Mortgage Advice Bureau (MAB). For a share of my income they look after my compliance, training, software licences etc. They are also tasked with finding lead sources for individuals.MAB put me into contact with a company called The Property Group. Based on a verbal agreement that I would receive at least 40 leads pcm from between 5 of the estate agents in the group I estimated I would earn £65k + pa. (The estate agents were called Mayfair, Simon Williams Mayfair and Gary Berrymans).It was also agreed that staff members would be targeted in order to support this figure. As a result, to be tax efficient, I set up a Ltd Company called Inglebrook Mortgages. In addition to this verbal agreement their was the expectation that I would agree to an Introducer Agreement which was drawn up between MAB and the Property Group in 2015. The agreement states that for any leads that complete into mortgages, I would pay the sum of £250 to The Property Group (£100 to go to the agent who passed on the lead and £150 to The Property Group). I never received close to 40 leads a month whilst working with The Property Group and asked for support in paying the sales negotiators from The Property Group to keep them happy until such time my new business had grown enough to pay The Property Group in full for the small amount of leads that had converted into mortgages, this was rejected but I was given an additional 4 branches of Mayfair estate agents to look after(I never converted a single lead from these additional agents as the majority of their clients were cash buyers). In addition, the Director with whom this arrangement was made was let go by The Property Group for reasons unknown to me. Following this, I met with the new director 02/04/2019 and raised my concerns about low leads and trying to keep agents happy. I again asked for support but was told no and that The Property Centre would not be working with me anymore. This was followed up with an email to all staff in the agents I was working with to advise not to pass anymore leads to me.That was the last I heard from them until I received an invoice for £1000 for 4 cases that had completed.My arguments are that the in the Introducer Agreement the introducer is named as Mayfair (holding company is The Property Group) therefore 2 of the cases I was being invoiced for did not count as they came from Gary Berrymans and Simon Williams. In addition, point 11 on the agreement states either party can end the agreement at any time by giving notice in writing. I never received any notice so they have breached the terms.I am in the process of closing my Ltd company down and continuing on a sole trader basis.Any advice would be really appreciated.

Hello. I am Ed, a Solicitor qualified in England & Wales with over a decade’s experience in the legal profession advising clients.

 

I specialise in Commercial Contracts, Business Transactions, Employment, Dispute Resolution, Personal Injury and Road Traffic Law and will be able to resolve your legal problem today.

If the Introducer's Agreement was signed by you under the umbrella of your limited company which you are about to close, the other party will not be able to sue a defunct company as it will be an insolvent entity.

 

Furthermore, the amount of £1000 is probably not worth them pursuing as it is a small claim and they will not be able to recover legal costs.

 

If you have served notice terminating the agreement, I would let the matter lie until you have dissolved your limited company and then they will not be able to pursue you.

I hope this resolves your enquiry. Please revert to me if you have any further questions and I will be delighted to assist.

 

Otherwise, I shall be grateful if you will please mark your enquiry as “Closed” and give me a “Positive” rating in order to conclude this matter.

 

Kind regards

 

LawyerEd

Customer: replied 9 days ago.
Hi Ed thank you for your response. Before I close what would be my options if I kept the limited company open? Also I have not served notice, the fact that The Property Group are now using different Financial Service provider and the email to staff advising not to pass me any leads on 02/04/2019 implied they no longer wanted to work with me. Would you recommend I send notice in writing ending the agreement - would you like to see the agreement?

If the limited company is still active, it can be sued by the Introducer for fees due under the contract.

Yes, you should serve notice terminating the agreement. This will reduce the risk of you being sued. I don't need to see the agreement. It is clear that they do not want to work with you any longer.

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