Conveyancing charge -fixed / hourly rates

anear

I got 3 conveyancing quotes from local solicitors and chose the one with quickest response and cheapest fees.

Below is their quote:
Legal costs 450.00
VAT thereon 90.00
Local Search (Kirklees) 75.00
Water & Drainage Search 45.36
Mining Search 38.40
Environmental Search 58.80
Land Registry Search 3.00
Land Charges Search 2.00
Land Registration fee 95.00
Bank/Admin fee on Telegraphic transfer of
Funds to complete 36.00
File scanning fee 12.00
Stamp Duty at 1% 2100.00
TOTAL 3005.56

Now my offer has been accepted and mortgage applied. Things start to progress. I receive a welcome pack from the solicitor today. On the letter it says that the quote is only an estimate. More importantly, on the Terms and conditions that they ask me to sign, it doesn't list the quote at all, instead it says

'Our charges will be calculated mainly by reference to the time actually spent by the solicitors and other staff ...' with a list of the current hourly rates ranging from £150 to £240 (without VAT).

Is this normal? shall I change my solicitor and go for one charge fixed fees?

anear

I know that there are many remote/online conveyancing services which charge much less. Shall I choose online conveyancing or stick to local solicitors?

kinger101

I'd go fixed fee. You asked how much it would cost, and they haven't told you. £240 a hour can be a lot when it includes bum scratching and thumb twiddling.

rosie383

^^^ This. If you hit any kind of problem at all, you have no idea how many hours they could take on it. I wouldn't risk it ever.

Thrugelmir

anear wrote: »

I know that there are many remote/online conveyancing services which charge much less. Shall I choose online conveyancing or stick to local solicitors?

The actual fees are £450 plus VAT. How much do you expect to save?

If you purchase a leasehold property then additional work will be involved.

davidmcn

anear wrote: »

'Our charges will be calculated mainly by reference to the time actually spent by the solicitors and other staff ...' with a list of the current hourly rates ranging from £150 to £240 (without VAT).

Is this normal? shall I change my solicitor and go for one charge fixed fees?

I suspect this is just a misunderstanding, and they are intending to charge you the fixed fee they quoted. Their standard conditions will have default hourly rates where they haven't agreed anything else. Ask them to clarify.

Carpi09

Is that stamp duty correct with the new changes?

benjus

If they sent you a quote, rather than an estimate, and the quote is for a fixed fee, then that is what they must charge you. As davidmcn pointed out, it may just be from their general T&C.

Although if you do agree to pay them by the hour, I'm sure you won't be posting any of the "my solicitor won't return my calls" threads you see on this branch...

Richard_Webster

My view is that the solicitor needs to protect himself by saying it is an estimate in case the work gets very complicated and time consuming. I would say that I wouldn't change the figure unless it was very complicated etc and would give fair warning that this was likely to happen.

However you do have to be careful and a £450 on thebasis of 3 hours work @ £150 ph could easily be £1,200 because they actually spent 8 hours.

You need to ask whether they will apply the hourly rate strictly or not. If I had a very complicated job and I had said £450 then it might get to say £600 when it was perhaps worth £1,2000 but I would take most of the hit on a swings and roundabouts basis. Not every one does so you need to check.

Also if from the facts given it is obvious that the job will be complicated then the figure should be higher to start with. It is only when the solicitor cannot reasonably expect the work to be complicated that it may be fair to charge a bit more, having warned the client as soon as this is discovered.

anear

Yes, they have clarified this. They replied:
"The terms and conditions are standard throughout the company.
It is the client care letter that sets out the costs therefore my cost quoted will stand."

My worry is that the client care letter (where their quote is listed) is not legally binding, whereas the terms and conditions they ask me to sign is. I am not comfortable to sign something which is completely different from what we agreed. It will put me in a vulnerable position if there is a dispute in the future, esp. they are a law firm.

davidmcn wrote: »

I suspect this is just a misunderstanding, and they are intending to charge you the fixed fee they quoted. Their standard conditions will have default hourly rates where they haven't agreed anything else. Ask them to clarify.

anear

The property is freehold. Their quote is reasonable and cheapest actually. My worry is they only quoted cheap to get the work and later charge me more (hourly based).

Thrugelmir wrote: »

The actual fees are £450 plus VAT. How much do you expect to save?

If you purchase a leasehold property then additional work will be involved.