Conveyancing is an important part of the house buying journey, and when the time comes to legally progress your house sale you are well and truly spoiled for choice. Buyers and sellers alike can choose from hourly conveyancing services, online conveyancing, no win no fee conveyancing services, and even DIY conveyancing services (though this is not usually recommended, unless you have the legal knowledge required to be able to correctly progress a house sale).
In this blog post we will be looking what no sale no fee guarantee means, the average legal fee for a no sale no fee conveyancing solicitor and how to find the best conveyancing quote.
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- What does no sale no fee conveyancing mean?
- Who offers no sale no fee conveyancing?
- Why do people choose no sale no fee conveyancers?
- How much does it cost to use a no sale no fee solicitor?
- What do I gain from using a no sale no fee conveyancer?
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What does no sale no fee conveyancing mean?
No sale, no fee is exactly what it sounds like! If you use a regular conveyancing solicitor then even if your property transaction falls though then you will still have to pay the fixed legal fees for all of the legal work completed by your solicitor. If you use a solicitor who is no sale no fee then should the property purchase or sale fall through for whatever reason, then you will not have to pay any legal fees to your conveyancer. Other names for this offer include ‘no completion no fee ‘, ‘no purchase no fee ‘, and ‘no move no fee’.
Who offers no sale no fee conveyancing?
A no sale no fee conveyancing guarantee is usually offered by online conveyancers rather than a traditional solicitor firm. If you are struggling to decide between a conveyancing firm and a solicitor this could be something that you factor in.
When you start comparing conveyancing quotes it is a good idea to check and see if the firms you are considering have any offers on such as these. It is also worth checking that the conveyancer or solicitor that you choose is authorised by the solicitors regulation authority.
How much does it cost to use a no sale no fee solicitor?
As we have previously mentioned, no sale no fee conveyancing is often a deal that you get with online conveyancers. Because of this the conveyancing fees often work out cheaper than if you use a traditional solicitor.
By going through a traditional solicitor you can pay anywhere between £850 to £1,500. This is without then factoring in the costs for property searches which can cost up to an additional £1,000.
No sale no fee conveyancers often ask for a small fixed fee deposit when you first instruct. This deposit is usually between £160-£300 and will cover for property searches and other third party costs. You will not have to pay any additional costs until completion.
Why do people choose no sale no fee conveyancers?
On average, failed house sales waste over £500 million a year in England and Wales. People choose no sale no fee conveyancers as they can usually save themselves around £1,500.
What do I gain from using a no sale no fee conveyancer?
The conveyancing process can be one that is fraught with worry, especially if you are concerned about your buyer or seller pulling out and leaving you to pay the legal solicitors fees and having to find another property.
By using a no sale no fee conveyancer you are protecting yourself from the potential of being stuck paying for conveyancing work for a property that you have been unable to buy or sell.
Another bonus is that some conveyancers can transfer your original deposit onto a new property if the original sale falls through. When you are comparing conveyancing quotes, it’s a good idea to check if they offer this.
Another advantage is that some conveyancers will conduct the property searches on your new home for free as a gesture of goodwill for staying with the firm. However, the majority will only do this if the transaction fails through no fault of your own and you find a new property to purchase within 6 months.
What is included in the cost?
When you agree to a no sale no fee deal you are only covered for the legal fees. The offer does not extend to other third-party costs such as searches or surveys. The amount you pay will only cover for the time that they spend conducting conveyancing work, such as looking into your case, sorting documents, etc.
Why do house sales fall through?
According to research by Homeowners Alliance, more than a third of property sales or purchases fall through without reaching completion. Whilst there are many different number of reasons why this can happen, below are some of the most common reasons:
Gazumping
One of the most common reasons that your house sale may fall through is because of gazumping. This occurs when the sellers accept a higher offer on their property even though they have already accepted an offer from another potential buyer. This often happens when the market is rising however it can happen regardless of market conditions.
Gazundering
This is the counterpart of gazumping. Gazundering occurs when the buyer lowers their offer for the property at the very last minute. This move is not illegal and can derail a property transaction when done.
Chain break
Property chains are a common way of selling and the majority of buyers and sellers are in property chains. The longer a property chain is, the more chance it stands of breaking. As each person is reliant on the next in order to make a sale, problems can often occur and when one person pulls out, it can cause a chain reaction.
Lots of offers
Another reason for house sales falling through is that some sellers accept multiple offers at a time. They will then sell to whichever buyer is ready to exchange first.
Change of heart
A buyer or seller may simply change their mind about the transaction. This could be for any number of reasons, such as family, work, or personal circumstances.
Finances
According to research by Homeowners Alliance, 28% of house sales fall through because the buyer had not organised their finances.
Bad survey results
Whether you are buying or selling a property, poor survey results are not an issue you want to come across. Poor survey results contribute to 6% of failed property sales.
This covers everything you need to know about no sale no fee conveyancing. If you have any further questions, queries, or insight into the matter feel free to get in touch.
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Alexandra is a junior content producer who enjoys writing articles and finding out more about the property market. Read more about Alexandra here.
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