Conveyancing with a 'no sale, no fee' policy means that you will only be charged once the sale of the house is finalised. In other words, if the sale falls through for any reason, you won't owe anything.
A 'no sale, no fee' conveyancer is often deemed as a good choice, as it protects you from losing money if a sale falls through (which is reported to happen in 1 in 3 cases). Some people also argue that this type of conveyancer is more incentivised to do a good job, as they will only get paid if the sale goes through. That said, it’s still best to compare conveyancing professionals and their rates and services before deciding to go this route.
If you want to know more about ‘No Sale, No Fee’ conveyancing, read on as Conveyancing Calculator shares more information on this topic:
How No Sale, No Fee Conveyancing Works
No Sale, No Fee conveyancing works in such a way that the conveyancer will be paid a fee known as a success fee only if the sale of a property goes through.
No Sale, No Fee conveyancing does not require you to pay a fee if the sale does not go through. However, if the sale does not go through and you have paid the fees to the conveyancer, you can reclaim the fees if the case goes to court, but it may be quite difficult to convince a judge to do so, especially if the reason the sale did not go through was due to a change of circumstances.
The fees to be paid to the conveyancer are usually calculated in the following way:
The conveyancer's basic fee: This is the standard fee that you and the seller agree on before the conveyer takes on the case.
The solicitor's additional fee: In some cases, both the buyer and the seller can agree to pay the conveyancer's solicitor a fee.
The buyer's and seller's success fee: These are the fees that the buyer and seller have to pay the conveyancer if the sale does go through.
What’s the Catch?
This type of conveyancing is usually sought by people who have a short time frame in which to either sell or buy an existing house.
In other words, they want to specifically avoid paying any additional fees (such as letting fees) if the sale or purchase falls through.
Having said that, there are some cases in which No Sale, No Fee conveyancing is generally not considered a good choice. Under these circumstances, you may want to consider other options.
Some of the cases in which No Sale, No Fee conveyancing is not considered a good choice include the following:
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If the sale of your existing house is not under any time pressure. If you do not have to sell your existing house in a short time frame, you can use a typical conveyancer, who will be willing to work with you in selling or buying a specific house.
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If you have a specific property in mind
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If you are ready to work with a conveyancer who will be willing to work with you, even if the sale or purchase falls through
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If you want to be able to compare different conveyancers before choosing a specific one
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If you want to be able to transfer to a different conveyancer if the current one is unable to make the sale or purchase go through
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If you want to be able to choose a unique conveyancer who has the most experience in completing the sale or purchase of properties in a specific area or price range
What a No Sale, No fee Conveyancer Wants to Know
Conveyancers need to be confident that the sale will go through.
Like any other business, they have expenses to cover and don't want to waste their time and resources as much as possible.
Some buyers will instruct conveyancers, then inexplicably back out of the sale, even though they never had any intention of going through with it. Similarly, sellers might suddenly change their minds and decide to keep the property. However, most conveyancers are aware that there's always a risk of the deal falling through.
They will likely ask some simple questions before continuing with the case. These could be:
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Has the buyer's deposit fund been checked and verified?
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Is there a mortgage AIP in place?
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What estate agency is managing the sale?
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How many dependent parties are involved in the sale?
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Has ownership of the property been checked at HM Land Registry?
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Have you done AML checks?
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Are there any special conditions of the sale to know about?
Reasons a Property Sale Falls Through
A house sale may fall through for many reasons. Some of these reasons include the following:
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The buyer or the seller backing out of the sale
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The buyer or the seller not having or being able to get a mortgage.
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The buyer or the seller does not have a deposit or cash in hand to give to the conveyancer.
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The buyer or the seller does not have a solicitor.
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The buyer or the seller does not have sufficient equity in the property.
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There is a complex chain where even a single issue can affect the sale.
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The buyer or the seller requires an extension of time to complete the sale. This can only be granted by the Court of Appeal.
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There is a mistake in the sale contract.
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The buyer decides to drop the price at the last minute causing the seller to back out.
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The conveyancers do not exchange information fast enough to move the sale forward.
Conclusion
Conveyancing can be a stressful time for everyone involved, especially when it comes to the actual sale of a property.
Sometimes, a sale can fall through for many reasons, such as a change in circumstances, a buyer pulling out at the last minute, unexpected structural problems, or even a simple miscommunication. Other times, you might have a case of a seller who is not willing to sell, so the wholesale falls through.
There are many people who view 'no sale, no fee' conveyancing as a good choice, as it ensures they are not going to be charged anymore in case of a sale falling through.
There are conveyancers who are willing to take on that risk, so the buyer or seller is only charged if the sale of the property goes through.
That said, if you find a conveyancer you already feel comfortable working with and they do not do "no sale, no fee" conveyancing, you might want to consider taking out residential abortive transaction insurance. Ask the top conveyance solicitors in Birmingham you’re considering about this option.
Either way, you’d want to compare conveyancing quotes before you choose a conveyancer. After all, you’d still want to know the fees you’ll be paying should the sale go through. Conveyancing Calculator makes it easier for you to do that. We offer instant conveyancing quotations provided by SRA Regulated Solicitors & Licensed Conveyancers in the UK. Compare conveyancing quotes and find your conveyancer today!
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