Solicitor charge after buyer pulled-out

giogiu1974

Hi everyone,

I’m looking for advice on a situation with my solicitor. I was selling my flat, but unfortunately, the buyer pulled out just before we reached the exchange of contracts after 6 months. My solicitor has now informed me that they will be charging me 70% of the legal fee based on the work they’ve already completed (reduced from 80%).

They’ve explained the charge as follows:

• They prepared documents for the sale, liaised with the buyer’s solicitor, handled numerous enquiries, chased responses from the landlord and residents’ association, and worked on organizing the redemption of my mortgage.
• Their terms and conditions allow for “abortive fees” if a transaction falls through, calculated on a time-spent basis.
• They are waiving the leasehold supplement fee (£250) as part of the gesture.

I signed an engagement letter with them that support their right to charge for the work done. While I appreciate the effort they’ve put in, I’m unsure if 70% of the full fee (which would cover work through to completion) is reasonable, considering the sale didn’t progress to exchange.

I intend to re-market my flat soon and am debating whether I should continue with the same solicitor or switch to another firm. They’ve been helpful so far, but I’m unsure if I might get a better deal or service elsewhere.

Should I ask for a more detailed breakdown of the charges to ensure they’re fair? And do you think I should stick with them for the next sale or explore other solicitors? I don't want to find myself in the same situation again if the next buyer pulls out again!

I want to handle this situation sensitively since I might continue working with them, but I also want to ensure I’m making the best decision.

Any advice would be much appreciated!

user1977

At "just before exchange" then I'd expect the vast bulk of the work will have been done, so 70% doesn't sound too bad.

Hoenir

Your choice whether to pay up or not. When it comes to the legalities of debt collection the solicitor will pursue regardless. They'll have a complete record of time expended and the work undertaken. 

Olinda99

yoh mighg get a 'discount' or favourable rate if you stay with same solicitor.

p00hsticks

Olinda99 said:

yoh mighg get a 'discount' or favourable rate if you stay with same solicitor.

This - the same thing happened to me as executor of an estate. I can't remember the exact amount ( I think I ended up paying about 150% of the originally quoted fee for the aborted and finalised sale combined), but they did offer to reduce the subsequent charge if I put any subsequent sale through them, as some of the work (e.g fixtures and fitting forms) could be re-used  

saajan_12

6 months into a sale is quite far, so at a high level, 70% isn't surprising. Most of the solicitor / conveyancing work is in the enquiries, aml checks, etc. After exchange there's very little to do. 

A fixed fee is also usually at a deal price, working out to less than the total hours x hourly rate, so the hourly for only part of the work wouldn't benefit from this discount. 

Re whether to use them again - I'd think of this the other way, ie use it as a bargaining chip to lower the abortive fee on the proviso you use them again rather than being put off by it. 

incus432

It's quite standard and probably fair.  It is possible to get no sale no fee conveyancing quotes but these tend to be higher for obvious reasons.

https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/no-sale-no-fee-conveyancing-solicitors/

 I'd say if the service was good stick with them.

Albermarle

Presumably if you go through the same process again, your solicitor will have already some of the necessary work, so their full fee should be cheaper next time.
This could be part of your negotiations.

m0bov

Stay with them and thank them for the discount. When you remarket the property, stick a bit on to cover your loss.

chanz4

next time go with a  no complete no fee is best, but afraid are liable

NameUnavailable

Unfortunately it's the cost of trying to sell (or buy) a property - until exchange either side can withdraw and costs incurred have to be paid by the respective parties.