Ringwood-based estate agent Connells is being sued by a homeowner for damages of £90,000, for selling her property below its open market value.
Connells, of Christchurch Road, Ringwood, had originally marketed the property at £235,000, but it failed to be sold because of major roadworks proposed on the A31. A year later, the owner began negotiating with the Highways Agency and lowered the asking price of the property to £195,000.
In August 1995 the Highways Agency offered to buy the property, on the condition that the purchase price would be negotiated between the district valuer and Connells. The defendant subsequently agreed to act on a commission of 1.5%.
The claim says that the firm had ultimately advised the sale of the property for £155,000, which was the amount being offered by the district valuer. The seller accepted the deal and the sale was completed in October 1996.
However, the seller has accused the Connells of acting negligently and in breach of agreement, and claims that the open market value of the property was £195,000, rather than £155,000.
The firm faces allegations of failing to engage in any meaningful negotiation with the district valuer, and failing to produce any satisfactory evidence supporting alternative valuations. Connells is also accused of failing to negotiate a price for fixtures and fittings, and advising a price on the basis that the roadworks had been completed, rather than on the assumption that pre-road scheme conditions existed at the time of sale.
PLS News 25/02/02
