Completion Statement - Queries

metal675

Hi,

I am a FTB purchasing a new build property.

I am due to complete soon and my solicitor has sent me a 'draft' completion statement.

The statement has their legal fees added to it. Is this normal or do people usually pay their solicitors after legal completion?

Is their anything in particular that I should review or check ?

Thanks in advance

G_M

It's normal.

You ensure before Completion that the coneyancer will have in his account (either from you and/or your mortgage lender) enough money to pay

* the seller, for the property
* your estate agent (if you are also selling)
* SDLT to HMRC
* any other 3rd parties (eg the Land Registry, search fees etc)
* his own fees

Following Completion, there should, in theory, be nothing further to pay (it does not always work out like that!), though you may receive some money back if you are also selling a property.

So the Completion Statement should be a full account of all income and expenses associated with the transaction(s).

JoJo1978

Yes, normal, got ours today! There's an SDLT calculator online if you wanted to check that. Refer back to your engagement letter from the solicitor for their fees. They may differ slightly to what's on your statement if they have had to do extra searches etc. But should be close.

metal675

Thank you both - very useful.

Saw few discrepancies which I have asked them.

I was just concerned that they are trying to include their legal fees with what needs to go to the vendor. I was thinking it will be completion statement and their invoice of fee.

saajan_12

metal675 wrote: »

I was just concerned that they are trying to include their legal fees with what needs to go to the vendor. I was thinking it will be completion statement and their invoice of fee.

They aren't. A completion statement is the monies you need to give them for completion.

Some of that refers to what goes to the vendor:
+purchase price
- 10% exchange deposit
- mortgage funds

Other items refer to monies for other costs which the solicitor handles:
+ EA fee
+ solicitor fee
+ disbursements from legal searches, surveys
+ Stamp duty to HMRC

You give the total to the solicitor, who then transfers money to the vendor & other parties, keeping only their fee. Perfectly normal.