AB Property Co, a micro-enterprise, instructed a service provider in respect of the purchase of a buy-to-let property.The service provider was instructed in April 2021, and as matters had not completed by 30 September 2021, AB Property Co withdrew from the transaction, as they would now be liable for SDLT. This was because the point at which SDLT was payable returned to standard levels on 30 September 2021.
AB Property Co complained to the service provider about poor communication and delay. In particular AB Property Co complained that the firm were slow to raise queries with the other side, which caused delays in the transaction.The service provider provided a detailed response and offered a remedy of £300 to acknowledge the impact of their service failings on AB Property Co.
AB Property Co were unhappy with the remedy offered, and escalated their complaint to the Legal Ombudsman. As the service provider had offered a first-tier remedy, the case was passed to the Early Resolution Team for consideration. The service provider’s final response showed that by 24 September 2021 there was still information outstanding from the other side, and as such they were not in a position to complete by 30 September 2021.The service provider accepted that there were some delays on their part. But it was not possible to say with confidence that, had those delays not occurred, that the purchase would have completed sooner. As a result, the Early Resolution Team felt that the service provider’s offer of £300 was reasonable in the circumstances, and the case was closed under Scheme Rule 5.7(c), without a full investigation.
