Hidden Legal Fees on New build

ging84

Just had my completion statement through on my new build

I have found the developer is charging me a £210 engrossment fee.

I will of course be getting in touch with my conveyancer first thing tomorrow, but wonder if anyone else has any advice.

This engrossment fee was never agreed on the sale contract i signed, at-least it was never itemised.


I am trying to understand exactly what an engrossment is, i found this website with an explanation
http://www.conveyancing-cms.co.uk/disbursements/page-2/
"engrossment fee – An engrossment fee may be charged when a buyer is purchasing a property that has just been built or converted. This is because the documents and planning information on new developments are generally more detailed. As a result, the solicitor will issue a charge for providing these documents, which the buyer must sign. The typical cost of this is variable, but it will usually be in the region of £50 to £100, exclusive of VAT."

and another explanation here
http://www.homewardlegal.co.uk/blog/what-engrossment-fee

This mentions disputing the fee at exchange of contract, which if i had seen it i certainly would have, but if it is on there, it must be quite well hidden, yet it seems i am being charged more than double a typical amount despite it being a freehold so no lease document involved.

what are other people's experience of these engrossment fees on new builds.

loubel

Are you sure it wasn't in the contract? Engrossment fees are normal with new builds. Ordinarily when you buy a house or flat your solicitor will prepare the transfer deed. With a new build the transfer deed or lease will be prepared by the seller's solicitor and it is completely normal for the buyer to pay for this and it should be in the contract what the fee is. New build contracts can be lengthy though so you may not have spotted it if you didn't read all the detail.

ging84

You could be right, i have gone through the guidance with the contract produced by the solicitor and it does indeed mention the fee, however i do not have it listed on my list of costs i took down from the contract it's self, so i did not believe i agreed to it, however i'm now much less confident in what i have written down given that it's mentioned on the guidance
I will have to check the actual contract with the solicitor

ethank

I bought a Taylor Wimpey new build last month and also had to pay an engrossment fee. It was definitely in the sale contract, and they went through this at the sales meeting.

Brock_and_Roll

"Engrossment" is fancy lawyer-talk for the drawing up of the contracts ready for signing.....which in modern parlence basically means not much more than just printing them out!

In the corporate finance world many (very expensive) law firms do not charge for engrossment any more because clients like myself are happy to print the things of ourselves and there is not much demand for fancy wax seals or red ribbons any more. That said, the bill is still huge!