Buying a home is an expensive undertaking and costs can add up very quickly. Before even moving in, there’s stamp duty, a deposit, searches, surveys and mortgage application fees to cover, so choosing a solicitor who guarantees that their fees will only need to be paid if the sale is successful can provide home buyers with peace of mind that they will not be left out of pocket, should the sale fall through.
No Sale No Fee
No sale no fee conveyancing is sometimes also known as “no purchase no fee”, “no completion no fee” or “no move no fee” and is essentially a guarantee by your solicitor that they will not bill for their time unless the sale is successful and you complete your home purchase. It is important to know, however, that any disbursements that the solicitor has paid out on your behalf prior to the sale falling through still need to be paid, and these can run into hundreds of pounds.
With up to one in three house sales falling through before completion it is little surprise that more and more people are opting for conveyancing solicitors that offer this service.
Pros and Cons of No Sale No Fee
Solicitors are not required to offer no move no fee conveyancing, so if you choose a solicitor on this basis, you should always ensure that you are comfortable paying the required fee should the house sale complete as planned because the costs of choosing this plan may be higher than those which an equivalent solicitor would charge on a conventional fee basis.
Many companies that offer no move no fee conveyancing are not traditional law firms but rather online conveyancing specialists such as Sam Conveyancing, and in many cases, choosing a firm such as this can offer other cost savings as well as providing home buyers with the certainty that their fees will only need to be paid when the sale completes successfully.
In addition to choosing this type of plan on the basis of cost, you may consider that your conveyancing solicitor or licensed conveyancer is better incentivised to progress the sale quickly and efficiently, dealing with any issues that arise expediently, since their fee depends on the success of the transaction.
Where the final cost is cheaper than that charged by solicitors employing a more traditional conveyancing model, this is clearly an added benefit, but should the cost be a little higher, this is clearly warranted based upon the outcome being a quicker, smoother sale.
Choosing a conveyancer or solicitor
When buying a home, you can choose to use a solicitor or a licensed conveyancer to undertake the legal aspects of the purchase. Both are fully regulated and insured and will operate in much the same way, so you should select the firm best suited to your individual circumstances.
Cost
Solicitors are generally more expensive as they cover a wider legal remit. This may be helpful when the property purchase is complicated, for example, if there are boundary disputes or the sellers are divorcing. Licensed conveyancers are more likely to offer a no sale no fee plan.
Time
Licensed conveyancers are specialists in property law and progressing property sales and purchases is their core business. Solicitors have a rather more varied workload and conveyancing work may not always be prioritised.
Summary
Buying a home on a no sale no fee plan can save you money and provide you with confidence that your chosen solicitor or licensed conveyancer is as committed to the success of the purchase as you are.