No sale, no fee conveyancing is a service offered by some conveyancers to clients buying or selling property. Essentially, no sale, no fee conveyancing means a client only pays legal fees if their transaction proceeds to a successful completion. If the sale or purchase falls through, the client is not liable for their conveyancer’s fees.
No sale, no fee conveyancing can seem an attractive option, particularly if money is tight. However, these arrangements are fraught with difficulties, many of which can result in the client losing considerable sums of money in the long run.
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What Are Some Potential Pitfalls Of No Sale, No Fee Conveyancing?
We have set out some of the main pitfalls of no sale, no fee conveyancing below. These are by no means prevalent in all no sale, no fee conveyancing firms, but are certainly potential issues that clients should be aware of.
• Hidden Charges
Many people do not realise that the term ‘no fee’ refers only to their conveyancer’s fees. It does not cover other expenses they will likely incur during the sale or purchase process, such as the following:
- Property search fees
- Land registry fees
- Bank transfer fees
In addition, many conveyancers offering ‘no sale, no fee’ services will still charge abortive fees when a transaction does not complete. The level of those fees will likely depend on the stage the transaction had reached before it fell through and the amount of work they had carried out up to that point.
• Potential For Quality Issues
Conveyancing transactions can be complex, and conveyancers must handle them carefully to ensure their client’s rights are fully protected. When a conveyancer being paid is contingent on the transaction completing, they may rush through a transaction or be less willing or able to dedicate the time required to meticulously review the contractual documentation and search results. In turn, this can lead to significant problems, particularly for buyers, who rely on their conveyancer to alert them to any issues with the property and protect their investment.
• Potential For Paying Higher Fees If Your Transaction Completes
Conveyancers working on a no sale, no fee basis take on the risk that the transaction may fall through and they will not receive payment for the work they have carried out. To offset this risk, some no sale, no fee conveyancers charge higher fees than traditional firms to those clients whose transactions proceed to completion.
• Potential For Communication Issues
No sale, no fee conveyancing firms sometimes take on a considerable number of cases to compensate for the fact that they may not get paid for some of the transactions on which they work. As a result, they may be unable to dedicate as much time to each client as traditional conveyancers can, which can result in their clients not receiving regular updates or being unable to contact their conveyancer easily.
• Potential For Conflicts Of Interest
When a conveyancer is reliant on a transaction completing to be paid for their work, there may be a potential conflict of interest between them and their clients. The conveyancer may be tempted to prioritise completion over their client’s best interests and, therefore, not provide the levels of service the client needs.
• Difficulties When Dealing With Complex Matters
For a no sale, no fee conveyancing firm to be profitable, it must complete a high number of transactions to make up for any that fall through. Accordingly, when a transaction raises difficult issues, the conveyancer may be less inclined to invest the time required to resolve them, preferring instead to concentrate on straightforward matters that will proceed to completion quickly.
What Is The Alternative To No Sale, No Fee Conveyancing?
While no sale, no fee conveyancing might appear to offer a convenient way for clients to reduce their costs exposure when buying or selling a property, the arrangement comes with considerable pitfalls that can have disastrous financial consequences for a client down the line.
Traditional conveyancing firms usually charge a fixed fee for conveyancing transactions. At Simper Law, we base that fee on the sale or purchase price of the property. For that fixed fee, you will receive a bespoke service tailored to your particular transaction and the issues it raises.
When you choose us to assist you with your property sale or purchase, you can be confident of receiving the very best legal advice and support, along with outstanding standards of client care at incredibly competitive rates. Our conveyancing solicitors are attentive, proactive, and responsive, always going the extra mile to ensure our clients’ interests are fully protected while getting the job done.
Please call us now on 01603 672222 for a no-obligation conversation today or Click Here To Make An Online Enquiry.
“May I take the opportunity to thank you personally for all your hard work and good advice throughout our purchase and sale. We are immensely grateful to you for all that you’ve done.””
