Solicitor referral fee???

Johnjones7656

Am a first time buyer using a mortgage advisor.
Mortgage advisor said she could recommend a solicitor and it turned out to be a solicitor my friend had used so I thought it was good.
However, when reading the documents there's a £400 referral fee to the mortgage advisor which is apparently included in my original quote under the title 'legal fees'-no other explanation!! So I didn't even know they were there!!

Surely I should've been told about these fees beforehand??

jlaw4

Try several different companies, are you using the same mortgage lender as we are having to use a much more expensive one due to them having a strict panel.
You should always compare everything during this process as every penny counts. Have a word with them and see if they will reduce/waive the fee.
otherwise, look at other solicitors. I was referred to my solicitor by my broker but didn't mention it and therefore they were none the wiser. i still asked for a discount after the intial quote though.

Johnjones7656

I'm annoyed at myself for not realising there would be a fee!!
As first time buyers though it's a bit of a minefield!!
The £400 fee is included in the 'legal fees' apparently but how I was meant to know that?! I don't know how much they are normally!
Just want to know if I can change solicitors now!

illusionek

Are you sure you reading this correctly? If this was the case referrals would never work as it would cost 400 less to use the same solicitor without referral.

I also used solicitor recommended by my broker. They made very clear to me that they have to pay him referral fee but I was not charged for it. They paid out of their own pocket.

Just double check this as it does not sound right.

Johnjones7656

It reads as
'Part of the fees you pay as shown in the enclosed summary of fees and payments will be paid by us to your introducer'
The fee is £415.
My friend has used the same solicitor and her fees were approx £350 less than what I've been quoted and her house was more expensive!

IAmWales

OP has an identical thread on the mortgages board.

Please stick to the one thread OP, it stops people duplicating advice.

Johnjones7656

Sorry-wasn't sure which board it was more relevant to!

G_M

How far have you got?

* received quotation?
* signed and returned the terms of business?
* instructed the solicitor to start work?
* paid an initial deposit (eg to cover dispursements)?

Depending where you've got to, you may be able o swtch without paying anything.

Get some comparative quotes.

Johnjones7656

I was just busy filling in all the paperwork for them when I came across the paragraph about the fees to the mortgage advisor and started to piece everything together! So haven't signed or paid anything thankfully!

Will definitely be in touch with them tomorrow and if they won't waive the fee I'll be on my way!

Got a few quick quotes on the internet earlier and they're definitely cheaper!!

G_M

Johnjones7656 wrote: »

Got a few quick quotes on the internet earlier and they're definitely cheaper!!

Be careful! Read those carefully.
* Check that they are quotes, not estimates.
* check what they include (and more importantly, exclude!)

Read

http://www.theadvisory.co.uk/conveyancing-quote.php

Get some quotes from local firms in your high street.

Lilla_D

Just a word of caution: when you're comparing quotes, make sure that you don't only compare the "total" figures, but check the details. Sometimes the "total" on a solicitor quote includes search fees, Land Registry fee, etc. (i.e. costs that the solicitor has to pay on your behalf to third party organisations), while others' "total" figure is just for the legal fee and their disbursements for postage and stuff.