Solicitors Fees Through Estate Agent

Bsmoke

Hi Everyone

We're first time buyers and decided to keep things simple by using the Estate Agent's solicitors after being quoted £565 + VAT + Disbursements. This quote was agreed on the phone with the estate agent but today we received a welcome pack from the solicitors with the below estimated costs;

Our charge for acting - £565
Identification Verification Check - £10
Lenders service fee - £150
Bank transfer service fee - £45
SDLT service fee - £75
VAT @ 20% - £169

Disbursements
Local authority search fee - £90
Water authority search fee - £49.20
Coal authority search fee £37.44
Environmental, full flood & planning search fee - £102
Land registry search fee - £3
Land charges act search fee (per person) - £2
HM Land registry fee on registration of title - £95
Estate agent case software fee - £30

Total - £1,422.64 (Not including stamp duty)

I understood disbursements would be added and are unavoidable, but the first section seems excessive making the £565 quote very misleading.

Does this seem like a reasonable cost for first time buyers on a £153,000 property?

Thanks
Bsmoke

giraffe69

The Estate agent is acting for the other side. Any solicitor you get via them is thus a bit dubious. If they seek to charge you a small headline figure and then make it more than 2.5 times as much you have reason to question
a. is it good value
b. are they likely to act in your best interest

I know it is only a minor amount but what on earth is "Estate agent case software fee - £30"

I would not go with them and find an solicitor who acts for you!

Yorkie1

Of the disbursements, all except the final one are likely to be fixed fees irrespective of which solicitor you use - they're called disbursements because the solicitor pays them out on your behalf and doesn't make profit from them (not allowed to).

The last one is taking the mick - you're paying the price either for their overheads or for the privilege of going through the EA (who will also be paid a commission by the solicitor for the referral ... guess who ultimately pays for that too ... ).

Of the fees, lender's service fee seems unusual, & many don't charge separately for the SDLT form.

To be honest, I'd contact them immediately, acknowledge receipt of their welcome pack, and tell them that you do not yet confirm instructions which you consider the welcome pack and unexpected extra charges further. This means that they should not consider you to be a client yet - and not charge you anything.

Then ask around colleagues or friends for a couple of recommendations for local solicitors, ring them up and get them to email quotes over to you to compare.

The general advice is never to use mortgage advisors or solicitors connected to the EA, and don't believe any guff from the EA that it makes matters more straightforward.

Once you've got the other quotes, you can see how they compare, and if you want to then post back for further opinions.

nick12

We got three quotes and two were very close to yours and one a couple of hundred more expensive. So probably not hugely excessive but I think you're right to be a bit peeved about the way it was quoted to you!

We approached reputable firms in the city we live in, the online conveyancing companies are probably cheaper but I've heard bad reports about the quality of service.

Bsmoke

We decided with the estate agent's solicitor for simplicity as the quote was only marginally more and they mentioned completion is usually quicker.

Will definitely question the bill, but as we already instructed them based on the £565 quote are we stuck with them?

The case software fee does sound like a pure profit addon, will be questing that even if it is only £30.

m_13

giraffe69 wrote: »

I know it is only a minor amount but what on earth is "Estate agent case software fee - £30"

This was on a quote we received when we viewed a house. We were handed a pack including a convenyancing quote by the agent who showed us around. We asked and he told us it was to allow online tracking of the case by us and the estate agent.

bmunky7

Our fees for a £445k purchase:-
Conveyancing 395
VAT 79
Telegraphic transfer fee 15
Stamp duty form fee 70

Disbursements:
various searches 195
Land charges fee 7
Land registry fee 270

Total excluding stamp duty £1,031

That's an online firm btw.

eddddy

Hi bsmoke

The welcome pack should also mention somewhere the referral fee that the solicitor has to pay the EA - often in a small font at the bottom of the last page.

You may be surprised how much of your money will just end up in the EA's pocket.

I recently saw a quote where the conveyancing fee was £650 (or 'charge for acting' as your solicitor calls it), but the EA got a £450 referral fee.

So in fact the solicitor/conveyancer was only getting £200. I imagine it would have been a pretty poor quality 'conveyor belt' service for that price.

mrginge

Bsmoke wrote: »

We decided with the estate agent's solicitor for simplicity as the quote was only marginally more and they mentioned completion is usually quicker.

and how exactly would this be the case?

You have been done up like a kipper mate.

Yorkie1

Bsmoke wrote: »

We decided with the estate agent's solicitor for simplicity as the quote was only marginally more and they mentioned completion is usually quicker.

Will definitely question the bill, but as we already instructed them based on the £565 quote are we stuck with them?

The case software fee does sound like a pure profit addon, will be questing that even if it is only £30.

You instructed them on the basis of 565 plus vat and disbursements.

There's a lot on top of the 565 before you get to the case software, which to my mind should be an office administration matter and not separately charged to every person who uses them.

You can always uninstruct a solicitor. The quicker you do it, the less likelihood that they have incurred fees. If you put them on hold pronto, the less likelihood that they will incur fees while you make your mind up.

And, as others have said, look for the commission somewhere.

m_13 wrote: »

This was on a quote we received when we viewed a house. We were handed a pack including a convenyancing quote by the agent who showed us around. We asked and he told us it was to allow online tracking of the case by us and the estate agent.

Bet if you'd said you didn't want the online tracking, they'd have insisted you had it anyway - and if it's needed by the EA then they can pay (out of the commission they receive from their cosy arrangement with the solicitor).

DRP

We went with the inhouse conveyancer when selling/buying we paid 600 for each transaction (1200 total). This sounds similar to your fees i guess

In our case they were pretty good and very contactable/communicative - if you'#re not happy with them at this early stage then it would be best to get rid now.

Of course I would say it is best to go with a recommendation from someone you know and trust.