The Question
I have had my home on the market and sold the property within the first week. The sale has been ongoing, but I was told this week the buyer no longer wants the property.
I want to go ahead with selling my home and will now have to put it back on the market. But do I have to pay solicitor’s fees for the work so far?
Mark’s Answer
When a property sale falls through, it’s natural to be concerned about the costs you’ve incurred so far, particularly solicitor’s fees.
The answer to your question largely depends on the fee structure agreed upon with your solicitors at the outset.
Understanding solicitors’ fee structures
Most solicitors do not operate on a ‘No Sale, No Fee’ basis. This means that, unless explicitly agreed otherwise, you will likely be responsible for paying a portion of the fees quoted to you when you first instructed your solicitor. These fees cover the legal work your solicitor has already undertaken in progressing your transaction.
Even if your solicitors do offer a ‘No Sale, No Fee’ service, it’s important to note that this typically only applies to their professional fees. Disbursement costs—such as fees for Land Registry documents, property searches, survey reports, and management packs—are usually not covered under such an arrangement. These are external costs incurred on your behalf, and you will still be liable for them.
Fee liability based on progress
The amount you’ll need to pay depends on how far the conveyancing process had progressed before the buyer pulled out.
Solicitors typically charge either a fixed fee or an hourly rate, and the percentage of the total fee you owe will increase the closer the transaction was to exchange. If the process was near exchange, you may be responsible for a significant portion of the quoted fees, in addition to any disbursement costs.
Mark Morton is a residential conveyancer at Parfitt Cresswell (Banstead Office)
Meet our expert
Mark Morton is a residential property licensed conveyancer for Copley Clark (the trading name of Parfitt Cresswell). He has a career spanning two decades and joined Parfitt Cresswell in February 2020.
If you would like to ask him or one of his colleagues a legal question connected to your home or related finances email kate.saines@emap.com
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