Conveyancing fees - pay at exchange or completion?

clarabelle41

We have decided to use a local solictitors conveyancor for our house sale & purchase. The terms of engagement state that the account will be raised at the point of exchange of contracts for settlement prior to completion. I had assumed that the account could be settled after completion as we intend to pay for these with equity released from the sale of the house.

Before I give them a ring to ask if we can do this I thought I would check if I'm wasting my time and this is always the procedure. I'm sure that when I sold my brothers house the account was settled right at the end.

kingstreet

They will be happy that the account is being settled from the sale proceeds of your current home which will go to them.

You don't need to do anything. This will happen automatically.

The terms will be used for other buyers, like a first time buyer, where this will of course not apply and they will pay the bill in advance of completion.

clarabelle41

Thanks Kingstreet, thats put my mind at rest :T

G_M

Generally at or after Exchange, a Completion statement is issued. This will detail the amount of money you will owe or will be owed to you (eg if your sale is greater than your purchase, or different mortgage amounts) at Completion.

It will include any estate agents fees, the solicitors account, Stamp Duty (payable after Completion) etc

If the balance means you will owe them they will expect this to be paid before Completion so that they can pay your seller, HMRC, the EA and themselves!

jbainbridge

I emailed our solicitor with this exact question this morning ... awaiting the answer. I'm assuming it will as G_M says.