Conveyancing no sale no fee agreement
A no sale, no fee agreement means your conveyancing solicitor will take on your claim knowing that if they do not complete the transaction you will not have to pay for their legal costs, only any third party disbursements, such as property searches.
Overall, a no win, no fee is a legally binding deal that gives you peace of mind. This type of agreement is designed to reduce financial risk for buyers and sellers in the property market.
Who offers no sale, no fee conveyancing?
Many reputable conveyancing solicitors will offer a ‘no sale, no legal fee’ service. This is particularly useful in the current climate where house moves and moving chains fall through on a more regular basis.
If you don't get a completion date and buying a house becomes more complicated than you'd like, a no win, no fee legal process is perfect for you.
No sale, no fee conveyancing saves money by avoiding payment for a transaction with an unsatisfactory outcome. This is important because every penny matters. You may be asked to pay a small sum upfront to cover the risk of no sale, no fee.
The Conditional Fee Agreement (CFA) came into play in 1995. This was following the end of the Government’s legal aid system and particularly for Personal Injury cases. As a result, it is now the solicitor’s choice whether or not they take your case on a no sale, no fee basis.
No sale, no fee should not be confused with all-inclusive conveyancing packages. These tend to be a fixed sum that includes the legal fees, the expenses and disbursements.
Online conveyancing services are the best way to secure a no move-no fee arrangement. Their services are available in much the same way as traditional ‘bricks and mortar’ solicitors. But they can be significantly cheaper when combined with a no sale-no fee conveyancing guarantee.
Online conveyancing correspondence is, unsurprisingly, conducted across the internet via email and often the solicitors' case management systems.
What are the advantages and disadvantages of no sale, no fee conveyancing solicitors?
Advantages:
- Reduced financial risk – if the sale falls through then you are protected and will not have to pay the legal fees.
- Conveyancers have incentive to make sure things run smoothly. If the purchase falls through, then they will not be paid.
Disadvantages:
- Potential hidden fees – it’s important to make sure you are aware of all potential added costs and research the company you choose.
- No sale, no fee conveyancing can be more expensive in comparison to traditional conveyancing agreements. This is to compensate for the risk the firm takes.
What causes a house move to fall through?
- Gazumping – For buyers, gazumping is one of the biggest potential reasons for a house move falling through. If the seller accepts a better offer with a better house price from another potential buyer, you could be left disappointed. This is particularly an issue with a fluctuating housing market. More buyers can be interested than sellers when purchase prices are attractive.
- The buyer or seller changes their mind – Sometimes the buyer might change their mind about the property – causing the sale to fall through. Alternatively, a seller may decide not to move. This is known as gazanging.
- Gazundering – If the seller does not accept the reduced offer from the buyer, then the sale will fall through.
- Broken chain – The likelihood of completing your house sale or purchase is reduced if you are involved in a whole chain of buyers and sellers.
You cannot complete your house purchase until your own house is sold, but the buyer of your current house can’t buy until they’ve sold their own house. If their house sale does fall through, when you start buying a property, it will likely be affected. That’s why sellers are much more inclined to accept your offer if you are not part of a chain.
- Contract signatures – In some instances, sellers may accept offers from two or more potential buyers. In this case, the seller may send contracts to more than one set of buyers. If this happens, the buyers who can sign the contract and get the deposit sent across via their conveyancing solicitor quickest will ultimately seal the deal.
- Problem identified in a survey – If during the conveyancing process a problem is found this can delay the sale or even cause the move to fall through if the buyer decides not to take the risk.
What costs do no sale, no fee conveyancing cover?
Often, you will have to pay a small deposit for security but will not pay any other fees until completion. No sale, no fee covers the costs of the legal work carried out by the conveyancing solicitor.
You may still need to pay for additional costs such as disbursements, searches, and any surveys or valuations. It is important to check with your conveyancing solicitor what is covered.
You can get instant quotes from quality, reputable conveyancing solicitors here at reallymoving.
No sale, no fee conveyancing FAQs
Is no sale, no fee worth it?
If you are concerned about your property sale falling through, no sale, no fee can give you peace of mind that if the sale falls through you will not be wasting money. However, it is important to note that the costs can be higher to compensate for the risk for the law firm.
What is the average cost of conveyancing fees in the UK?
The cost of conveyancing fees depends on multiple factors such as the property’s value and the complexity of the sale. The average cost of conveyancing is around £2,159.
At what point do you pay conveyancing fees?
With no sale, no fees you pay an initial deposit, but no other conveyancing fees until completion. If the sale falls through, then you will not have to pay.