A common sales promise that most conveyancing solicitors offer, no-sale no-fee conveyancing work refers to the waiving of legal fees if a purchase falls through. Especially nowadays, the current financial climate has caused home sales and moving chains to collapse on a more regular basis. As some property transactions become abortive due to various reasons, fall-throughs that aren’t caused by your misdoing can bring peace of mind when attached to a no-sale no-fee setup. In this article, we’ll take you through the reasons home sales tend to fail, how this type of conveyancing works, and whether or not it’s best suited for your needs.
The Functions of No-Sale No-Fee Conveyances
Conveyancing solicitors in London who don't offer no-sale no-fee conveyancing plans will likely charge you for legal work completed up to the point at which your property transactions fell through. Nowadays, up to 300,000 property transactions collapse every year, with no-sale no-fee conveyances alleviating the pain of having to pay hefty fees.
With typical conveyancing fees costing anywhere between £850 and £1,500, additional fees can set you back up to GBP2,700. When purchasing a no-sale no-fee plan, you won’t usually have to pay more than your initial deposit. However, in some cases, you’ll have to shell out for survey costs or search fees.
Who Offers This Type of Plan?
Instead of traditional solicitors, no-sale no-fee plans are usually offered by online conveyancing firms. When choosing between a firm and independent solicitor, this may be something you want to keep in mind.
No-Sale No-Fee Conveyancing Costs
Because it’s most commonly offered by online conveyancing firms, the fees attached to this plan are inexpensive. They might, however, be more expensive than a standard package that doesn’t include this security measure. How much a no-sale no-fee guarantee will cost you might depend on the following:
If your property solicitor presents you with an estimated bill as opposed to providing fixed-fee quotes. This makes a price comparison difficult as you’ll have to individually study a firm’s terms and conditions to work out what each service might cost.
A guarantee may be included as a standard in fixed-fee rates or charged as an extra.
That being said, with a no-sale no-conveyancing plan, you won’t pay more than £160 to £300 when you instruct your conveyancer. This will also usually cover third-party costs such as searches.
On average, a no-sale no-fee conveyancing plan can save you up to £1,500 on a sale. To put this into perspective, consider that failed home sales tend to waste up to £500 million per annum.
When shopping for a no-sale no-fee conveyancing plan to meet your needs, compare quotes from various providers and look up any reviews that may be available online. Researching opinions and feedback can help instruct your conveyancing decisions and better guarantee making your sale. Keep in mind other costs that may be a huge cash drain such as stamp tax or smaller factors that make up the entire buying and selling process.
Costs Covered by No-Sale No-Fee Conveyancing
Though you won’t walk away scot-free if your transaction fails, no-sale no-fee conveyancing will cover the costs of your conveyancer or solicitor. This might include the time spent looking over documents, filing requests, or organising data. Though we previously mentioned the coverage of third-party costs for tasks such as arranging surveys or organising local searches, not every firm will offer to waive these fees.
In some cases, you may be able to recover your initial deposit and transfer this to a second property transaction. If your first attempt falls through, the initial deposit can count as a handy extra saving on another attempt.
If you’re unsure about a purchase, ask your firm not to incur any expenses initially while you finalise your financing. This can keep other fees from mounting up if you aren’t ready to start conducting a survey.
Why House Sales Fall Through
Over a third of property transactions tend to fall through due to the following reasons.
Gazumping, or when sellers accept a better offer after a potential buyer has already committed to purchasing the property. Gazumping is usually common when the market rises and higher offers come into play weeks or even months down the line.
Gazundering, or when a buyer lowers their offer at the last minute. Though a foul move, gazundering is perfectly legal and can drastically derail a transaction.
Multiple offers, which are usually self-explanatory even though the first buyer ready to transact will get the property. This also means sending contracts out to more than one set of buyers, which can add up in terms of additional costs.
Breaks in the chain, which can make you reliant on other people selling their homes. The longer the chain of buyers and sellers, the fewer options you have.
Changing minds, which can be due to emergencies or financial reasons. If circumstances can’t be helped or you and a buyer can’t come to an agreement, you may have to spend extra fees searching for a new one or forego the transaction entirely.
Poor surveys, which might not reveal underlying property issues on time. In the U.K., badly accomplished surveys cause 6% of failed transactions.
Failed finance, usually caused by unorganised buyers. Buyers who don’t have their finances in order attribute to 28% of failed property transactions.
When selling a property for the first or even fifth time, it’s important to consider all the ways it could fall through. By protecting yourself with a no-sale no-fee conveyancing plan, you give yourself peace of mind. A viable option for home-sellers and home-buyers, a no-sale no-fee plan can encourage those involved to work harder towards closing a sale.
To easily compare conveyancing quotes, visit Conveyancing Calculator. We help you compare the best value conveyancing plans online and link you up with reliable solicitors. We believe that your best option for managing properties is to connect with a solicitor who boasts a high success rate and provides fully transparent up-front costs.