Is no sale, no fee essential for conveyancing?

rosie383

Thanks guys for the input. How would I stand because I told this particular firm I wanted them to act for us, and it's just now that I have the T&Cs that I can see very clearly what I should have asked before saying yes if you get me? I have emailed them to say 'before you go any further etc' and haven't signed any contract with them as yet.

rosie383

Got a reply by email to say that there is no other option open to us. If we don't complete, we will be billed for all work done up until that point.
Am I obliged to stay with them as I haven't signed anything yet? Does them drawing up the contracts for us constitute work that I need to pay them for?

G_M

You can withdraw if now that youve seen their terms, you are not happy with them.

Write clearly and say so.

However, as most posters have said, most conveyancers work like this. They do the work, they expect to be paid for it. If it comes to nothing (through no fault of theirs) well, not their fault!

Having said that, some time ago I went for a repo that I knew would be competative. I told the conveyancer it was imerative to me things moved fast so I could exchange asap and lock oyt anyone eles.

They said they could move like lightning.

I said, OK, so all should be fine? and they agreed. So I said in that case you'll be happy to back up your confidence by doing a no sale no fee deal. They agreed (and at the original price).

I got outbid at the last minute an they were not happy.......

eddddy

rosie383 wrote: »

Got a reply by email to say that there is no other option open to us. If we don't complete, we will be billed for all work done up until that point.
Am I obliged to stay with them as I haven't signed anything yet? Does them drawing up the contracts for us constitute work that I need to pay them for?

From what you say, it sounds like they have just sent you a written quote and a copy of their t&cs.

You've read their t&cs and don't like them, so you're not going to proceed with them.

I very much doubt they have done any chargeable work before getting your signed instructions.

So I can't see them claiming any fees.

Thrugelmir

Bart1 wrote: »

Oh please...... As the Op pointed out this is a money saving site and plenty of businesses work on a no cure no fee basis as a business tactic. The plumber who comes out to give a no obligation quote, estate Agents who fail to sell the house etc etc

I don't see any comparables in the 2 examples you've given. Anybody that provides a "free" service recovers the money in what they charge other customers. Conveyancing is a price competitive industry. So having a higher base charge would be self defeating.

kinger101

Thrugelmir wrote: »

I don't see any comparables in the 2 examples you've given. Anybody that provides a "free" service recovers the money in what they charge other customers. Conveyancing is a price competitive industry. So having a higher base charge would be self defeating.

Someone risk averse might be willing to accept a higher fee on the basis of no sale, no fee though.

The reality is many people (and companies) have a portion of their work that does not generate any income. The builder giving a quote is one example. A salesman largely on commission might be another. A shopkeeper opening his doors might also find he has no customers one day. A contractor may bid on a project and fail.

Loopy28

I am using a solicitor who do not offer the no sale no fee option, meaning I will be stuck with a big bill if things fall through.

I went with them because they are a good company and I know they will progress my sale and purchase well. However, I am now constantly worrying that my buyers will pull out as I know they are using a no sale, no fee solicitor so could do so with little financial implication to them.

If I could start again, I would have opted for a no sale no fee solicitor as a way of damage limitation. However, if things do run smoothly I will be glad I went with the one I did!

stator

I'm about to be stung with about £1k of fees for a failed purchase. Would currently recommend a no sale, no fee conveyencer if it's not much more expensive
If it all goes through okay and you are in your new house you won't worry too much about the extra £100 or so.
If it all falls through and you have to go back to square one, the cost of all the conveyencing just makes things even more depressing and makes you feel like a complete idiot.

Kynthia

If the purchase falls through then the solicitor fee is only part of the money you are out. You are likely to be out any valuation/survey fees, mortgage arrangement fee (which is why I add it to the mortgage and then change to pay it on completion), disbursements such as your searches and any other costs such as getting a boiler check. Also unless the purchase falls through right at the point you were going to exchange then you'll only be charged a percentage of the solicitor's fee. Therefore I wouldn't base my decision on what solicitor to go with on whether they were 'no completion no fee' as there's only a chance that it will save you a few hundred yet there's a bigger chance it will cost you a little extra and restrict your choices.

rosie383

stator wrote: »

I'm about to be stung with about £1k of fees for a failed purchase. Would currently recommend a no sale, no fee conveyencer if it's not much more expensive
If it all goes through okay and you are in your new house you won't worry too much about the extra £100 or so.
If it all falls through and you have to go back to square one, the cost of all the conveyencing just makes things even more depressing and makes you feel like a complete idiot.

This is exactly why I asked. We already lost money on survey and referral fees. And I understand what you mean Kynthia, but if I can avoid the risk and worry of losing more money then I would prefer that. I think part of the problem is that we haven't found somewhere to buy yet. And even though our buyer is apparently 'good', I'm just not sure. BTW, for any new buyers reading this, our EA's definition of our 'good' buyer was that she was doing what she was told!!! Eg., using their recommendation for everything and earning them many referral fees.. I am pretty sure they hate us though as, apart from right at the very start, we have not been like sheep and are trying to research and not be fleeced!
It's testament to how these processes can be a bit stressful, that I am writing this at 2.39am and I know I have to get up in a few hours.