Excessive Surveyors fees?

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    #16
    When placing insurance the agent is in exactly the same position as a broker. The FSA regulations which regulate agents in this matter are crystal clear on that.

    The commission argument is therefore inconsistent. Your car insurer charges you £500 and gets £50 comm; should he then charge you £450?

    You, the car owner are in the same posiiton as the landlord who incurs the cost ( a managing agent does not incur costs as he is an agent) and both the broker and the agent are paid a commission by the insurer for introducing the insured ( you and landlord) to them.

    If this were changed then the agents fees would simply be increased to pay for insurance to be placed and handle all those insurance claims.
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

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      #17
      Originally posted by leaseholdanswers View Post
      When placing insurance the agent is in exactly the same position as a broker. The FSA regulations which regulate agents in this matter are crystal clear on that.

      The commission argument is therefore inconsistent. Your car insurer charges you £500 and gets £50 comm; should he then charge you £450?

      You, the car owner are in the same posiiton as the landlord who incurs the cost ( a managing agent does not incur costs as he is an agent) and both the broker and the agent are paid a commission by the insurer for introducing the insured ( you and landlord) to them.

      If this were changed then the agents fees would simply be increased to pay for insurance to be placed and handle all those insurance claims.
      A good point butI have to agree with Tony. First of all if an individual buys car insurance it is his choice and he can take it or leave it, the insurance isn't foistered upon him as is the case with service charges.

      It is the very fact that tenants are forced to pay costs incurred by someone else that disputes arise and LVT's exist, this puts it in a different context, the car insurance scenario maybe correct but at the end of the day insurance/commission costs have been argued quite a few times at LVT's and Tribunals have in many instances (although not all) decided that the commission element should be refunded to the tenant (or the amount recoverable be lowered by the relevant %).

      Andy
      Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

      I do not accept any liability to you in relation to the advice given.

      It is always recommended you seek further advice from a solicitor or legal expert.

      Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

      Comment


        #18
        But not having control and personal choice is a fact of life in living in flats.

        The legislation and the decisions protect you in so far as where the situation is taken advantage of, some costs may be returned, not that the commission is in itself wrong.

        It is the same as having to accept that you cant by and large paint your own windows or common areas and have to pay more than you would if you did it yourself or employed a smaller contractor.

        While some of the litigation is caused by the "piss being taken" equally having unreasonable and impractical expectations and imposing the commercial practices of other services or suppliers leads to self created frustration.

        I recall years ago being "overridden" by the parent company who took over the insurance brokerage to place insurance on a building, even though the quote was from the same insurer and almost double what I had. There was some shock when I instructed them not to place the insurance and they had to accept it as I was LVT appointed manager.
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment

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