It’s really important that when you pick your solicitor for buying your first home, you understand exactly when fees need to be paid.
No completion no sale solicitors are legal professionals who work specifically in the realm of property sales. They operate on the basis that they will only be paid if the property sale successfully completes, hence the name ‘no completion no sale’.
The solicitors work closely with estate agents, mortgage lenders and other professionals involved in the sale process to ensure that everything runs smoothly.
Are no completion no fee solicitors different?
No completion no fee solicitors have the same responsibility as regular solicitors and will still need to have the proper licenses and qualifications. You can look up if a solicitor is registered with the solicitors regulation authority.
Is a no completion no fee completely free?
Fee structures for solicitors can vary widely, even within the same category.
Some no completion no fee solicitors will not charge any fees until completion, but this is actually quite rare. Normally no completion no fee solicitors will charge a small upfront fee to cover the basic work to start with. However this is will be a small proportion compared to the total legal bill.
Although most people think solicitors only charge for their time, there are actually a number of other costs that solicitors pay for to make your house purchase happen. These include things link property searches and land registry documents. Unfortunately, solicitors do normally need to have these costs covered, even if they do operate a no completion no fee model.
How much are regular solicitor fees for buying a property?
Fees can vary a lot between solicitors due to the following:
- Location of solicitor
- Type of property (some are more complicated than others)
- Any issues that arise from the property searches that are done
When including VAT, total legal fees can range from £1,100 and £3,000 (and some are even beyond these bands). This is a large amount of money that normally has to come out of your saved deposit.
How much are no completion no fee solicitors?
Solicitors for no completion no fee solicitors normally charge between £100 to 400. This would cover the costs of the solicitor all the way up to completion.
Completing Quicker
No completion no fee solicitors can be beneficial as it means that they have a vested interest in ensuring that the sale proceeds smoothly and without any issues. This can make them more efficient in getting back to queries and moving the process on.
Solicitors get a bad reputation for taking too long on house sales. This often is not a fair view – the reality is whilst a few do take far too long, many are simply held up by other people in the transaction.
Avoiding Issues
Although the majority of solicitors on the no completion no fee model will act diligently and professionally, it can’t be ignored that many will be under pressure to ensure their property sales complete. If the house sale falls through after all of the legal checks are done, the solicitor’s practice will end up out of pocket.
Because of the pressure to complete on home sales and collect the final fee, some solicitors may not raise as many issues or queries with the seller’s solicitor. This is not ideal. When buying a home you want to ensure that your solicitor is spending enough time on your case so that you don’t move in with a major problem waiting for you.
This ultimately will come down to how much you trust your solicitor. Good solicitors will take the required amount of time needed to do their client an excellent service, regardless of whether they operate a no completion no fee model or a regular model.
Easier To Budget
No completion no fee solicitors can also be beneficial for homebuyers who are on a tight budget. The cost of legal fees can be significant, and if the sale falls through you may not have the financial resources to pay for another solicitor on a later property sale.
Home Buying Insurance
Another way of making sure you are protecting your costs in a property sale is to take out home buyer protection insurance.
Are There No Sale No Fee Estate Agents
Yes, no sale no fee estate agents are relatively common in the UK. In fact, many estate agents now offer a no sale no fee option as part of their service.
The concept of no sale no fee estate agents is straightforward. Estate agents typically charge a commission on the sale of a property, which can be a significant expense for the seller. However, with a no sale no fee arrangement, the estate agent will only charge a commission if the property is sold. If the property doesn’t sell, the seller won’t have to pay any commission to the estate agent.
However it’s worth noting that some estate agents may require the seller to commit to a minimum marketing period or may charge a fee for marketing expenses, regardless of whether the property sells or not.