No sale no fee conveyancing (sometimes also referred to as a ‘no sale guarantee’ or ‘no completion no fee’) is a promise that is offered by law firms and provides homebuyers with some protection against a failed sale. With around one in every three sales falling through, this can be an extremely useful safety net. Without such a guarantee, costs can escalate and would be payable even if the sale didn’t complete.
What are conveyancing fees and what do they cover?
Conveyancing fees are those that are paid to solicitors or licensed conveyancers as part of a property or land sale. They cover a number of things including legal fees as well as the cost of searches, and any other third-party expenses (referred to as ‘disbursements’).
The legal fees cover time spent by the solicitor or conveyancer on the matter. Searches include local authority searches, Land Registry searches, environmental searches, and others. Disbursements can include things like courier fees, bank fees, and anything else additional that is needed during the process.
What are the average conveyancing fees?
The average conveyancing fees for a property transaction vary due to a range of factors, notably the value and the type of property. The average failed property sale costs around £3,000, of which between £1,000 and £1,800 will be categorised as legal fees.
What is covered by no sale no fee conveyancing?
Most no sale no fee arrangements apply only to the legal fee element of the transaction. This is basically the cost of the conveyancer’s time spent arranging searches, negotiating, writing letters, organising things etc.
Some firms will agree to transfer your initial deposit to a second transaction if the first fails for reasons beyond your control.
What is not covered?
This type of arrangement doesn’t cover third-party costs such as ad-hoc expenses.
Payment Arrangements
Usually, you will pay a small initial amount (around £200-£350) when instructing a conveyancer to handle your sale. The balance will then be due upon completion.
No sale no fee conveyancing options
There are a number of law firms that have both licensed conveyancers and solicitors who specialise in conveyancing. A number of these offer guarantees to give extra protection against the possibility of a failed sale. Several of these firms also have useful online resources such as the examples seen here: https://www.samconveyancing.co.uk/news/conveyancing/no-sale-no-fee-conveyancing-153.
Additional Protection
If you want complete protection against a failed sale, it is worth taking out homebuyers’ protection insurance alongside using a no sale no fee conveyancer. This type of insurance will allow you to claim back survey, valuation, search, and mortgage fees if the purchase falls through. This must be taken out prior to instructing a conveyancer.