does the seller pay their solicitor’s fees if a buyer pulls out of a sale last minute?

Topher

I’m selling my Mums house to pay for her care home fees. Buyer 1 pulled out of a sale that had got as far as my solicitors sending me a contract to sign for them to hold ready to plan exchange dates. The estate agents (A) then shut down as a business and the sale was handed to Estate agents (B), I kept the solicitors. I’ve received  an invoice for £750 after my deposit of £50 was discounted from the solicitors. Buyer 2, with estate agents B have now pulled out of the purchase although before solicitors had drawn up contracts but solicitors had asked me to provide proof of 17 questions they raised in order to proceed with sale. (17 questions were pretty much the same ones I’d already answered for the first sale, so my answers and proofs were just the same as first time). My question is,.. am I obliged to pay £800 every time a potential buyer pulls out of the purchase? - This is in the 

UK

eddddy

Your solicitor will almost certainly have given you their terms of business before you instructed them.

Those terms of business should explain what fees you have to pay for each abortive sale.

Typically, the fees are based on the number of hours of work the solicitor has done, times their hourly rate.

But some solicitors might offer 'no sale, no fee' terms or some similar scheme. (But it tends to be the 'conveyancing factories' who tend to have schemes like that.)

nottsphil

Topher said:

This is in the 

UK

That's not particularly informative as Scotland has a different legal system.

anselld

You are generally obliged to pay for actual work done, yes, but it should be less than the full fee although obviously the closer it gets to exchange the larger percentage it will be.  You can find some no-sale, no-fee Soliicitors or you can insure against the cost of non-completion.

user1977

nottsphil said:

Topher said:

This is in the 

UK

That's not particularly informative as Scotland has a different legal system.

Given the OP refers to "signing contracts" and "exchange dates" I assume England or Wales. Though the jurisdiction doesn't make a great deal of difference to the question of whether you're liable for your solicitors' costs if the transaction falls through before the contractual point of no return.

Chief_of_Staffy

You normally have to pay for the work done. Parties can back out at any point without consequence prior to exchange, but you still need to pay for things like solicitor hours, searches, surveys and the like. If you're mid-chain be thankful that they didn't pull out post-exchange, because then the fees can wipe you out.

elsien

is there a reason that you think your mother’s estate shouldn’t pay them for the work that they have already carried out on The executors behalf? 

lincroft1710

Chief_of_Staffy said:

You normally have to pay for the work done. Parties can back out at any point without consequence prior to exchange, but you still need to pay for things like solicitor hours, searches, surveys and the like. If you're mid-chain be thankful that they didn't pull out post-exchange, because then the fees can wipe you out.

If buyer had pulled out post exchange then they would lose their deposit plus be liable to be sued for losses incurred by the vendor

Chief_of_Staffy

lincroft1710 said:

Chief_of_Staffy said:

You normally have to pay for the work done. Parties can back out at any point without consequence prior to exchange, but you still need to pay for things like solicitor hours, searches, surveys and the like. If you're mid-chain be thankful that they didn't pull out post-exchange, because then the fees can wipe you out.

If buyer had pulled out post exchange then they would lose their deposit plus be liable to be sued for losses incurred by the vendor

You'd lose your deposit too, and it would be more. The only one to benefit is the seller at the top.

Section62

Chief_of_Staffy said:

lincroft1710 said:

Chief_of_Staffy said:

You normally have to pay for the work done. Parties can back out at any point without consequence prior to exchange, but you still need to pay for things like solicitor hours, searches, surveys and the like. If you're mid-chain be thankful that they didn't pull out post-exchange, because then the fees can wipe you out.

If buyer had pulled out post exchange then they would lose their deposit plus be liable to be sued for losses incurred by the vendor

You'd lose your deposit too, and it would be more. The only one to benefit is the seller at the top.

"sued for losses incurred by the vendor" covers that.  Each party in the chain should end up back in the same position, except the one who pulled out first.

(and the deposit isn't always more)

Chief_of_Staffy

Section62 said:

Chief_of_Staffy said:

lincroft1710 said:

Chief_of_Staffy said:

You normally have to pay for the work done. Parties can back out at any point without consequence prior to exchange, but you still need to pay for things like solicitor hours, searches, surveys and the like. If you're mid-chain be thankful that they didn't pull out post-exchange, because then the fees can wipe you out.

If buyer had pulled out post exchange then they would lose their deposit plus be liable to be sued for losses incurred by the vendor

You'd lose your deposit too, and it would be more. The only one to benefit is the seller at the top.

"sued for losses incurred by the vendor" covers that.  Each party in the chain should end up back in the same position, except the one who pulled out first.

(and the deposit isn't always more)

You can sue anyone for anything, but the contracts make for individual liability and the moneys in the scope of those contracts is all that's guaranteed. If you're selling for £200k and buying for £400k, and your seller pulls out post-exchange, you'll receive £20k, you'll be liable for £40k, putting you £20k down, and the seller will be up a full £40k. You could sue the buyer for more but there's no scenario in which you and your seller are in the same position, short of an informal agreement.