Conveyancing Tricks and Traps

The need to continue to save money does not go away just because you have bought or sold your house.

Read the following article if you wish to continue with your desire to save money.

Usually when the final invoice you receive has no bearing on the original price you were given.

The traditional conveyancing quote was originally based on a percentage of the property price, in much the same way as estate agencies still operate.

As property prices increased firms moved into pricing based on hourly rates, which would vary depending on whether you were dealing with a Partner or Associate Solicitor.

For clients this meant they were given a ballpark figure, which could still rise if the matter became more complex and time consuming.

Many firms now offer fixed pricing based on the price of the property, however there are still traps to look out for.

Read on:

1. Don’t just look at the headline quote. A number of firms have adopted a pricing structure which relies on a low main legal fee to attract clients but is then significantly increased by additional supplements. This is particularly the case with many online quotes.

2. Most firms will charge an additional fee for leasehold properties as there can be significantly more work involved in these transactions, however other fees to look out for include:

• Completion of stamp duty forms
  
• Contribution to indemnity insurance
  
• Acting for your lender if there is a mortgage involved
  
• Postage and storage

3. Make sure any quotes you receive include all of the above. You should only be charged additional fees if there is genuinely additional work undertaken that could not have been foreseen when instructed.

The standard disbursements you should expect on a purchase are stamp duty (for purchases over £125,000), land registry fee, bankruptcy search fee, telegraphic transfer fee and relevant property searches dependent on whether the property you are buying has a Home Information Pack.

As a rule most legal firms will always do at least three searches on a purchase property – local, water and environmental. However any property with a HIP should already contain the local and water searches. If you are taking a mortgage the lender may still insist that an environmental search is completed before they will lend money on the property.

What happens if your case does not complete? You may be billed a percentage of the legal fee based on how far the transaction had progressed. Ideally you should look for a conveyancing firm working on a no completion, no fee basis. This means that if you do not complete the sale or purchase you will only be charged for disbursements that have been paid out on your behalf.

Custom Search