Day you buy is day you sell!
Try to find out the value of your conveyancing quote when buying a home.
When buying your first home, we all want to ensure that we secure value for money. After all, buying a home is not a cheap process. Everybody charges; engineers, solicitors, mortgage brokers, removal companies, the government – yes, stamp duty. So when pricing each element, conveyancing fees are scrutinised in that everyone wants to achieve a low price.
So what is conveyancing exactly? Conveyancing at its simplest is the transfer of legal title to another. It is designed to ensure that the buyer secures title to the property together with all the rights that run with the property, and is notified of any defects on title in advance of the purchase.
If the title being sold is not good, marketable title one can then decide not to proceed in advance of entering into a legally binding contract. Once a person has entered into a legally binding contract, he/she is bound to complete the purchase. It is critical that the title to the property is investigated so that a purchaser has no difficulty obtaining a mortgage or selling the property at a later stage.
When deciding which solicitor to instruct in relation to your property transaction (which is, for most people, the most expensive purchase they will make in their lifetime,) one shouldn’t be focusing entirely on the cost of the conveyancing.
It is about the value also. While one quote may be cheaper than another, it may not include all the things you need. Contrary to popular belief, it is entirely possible to instruct an expert solicitor and keep your legal costs down. Putting right mistakes is usually more expensive so it is important to invest in expertise in the first place which can save you great heartache and financial loss in the future.
In residential conveyancing transactions it would be normal practice for the quotation to have a fixed fee as to the amount the solicitor will charge. This is called a professional fee. There are also figures providing for various outlays such as property searches, registration fees, etc. that the solicitor has to obtain in order to complete the conveyance.
It is therefore important that if you are seeking a proper estimate from a solicitor that he or she completes the estimate with proper details; not only the professional fees, VAT and outlays, but also the amount of stamp duty and land registry fees which may be payable. Outlays such as stamp duty and land registry fees do not vary between solicitors in that these costs are fixed by statute. The VAT rate is 23%, and will apply to all solicitors’ fees.
Historically, fees for conveyancing were calculated on a percentage basis being 1% of the purchase price of the property plus VAT and outlay, but now many solicitors have reduced this percentage figure.
Professional fees can vary from solicitor to solicitor, and can depend on a variety of factors, such as the complexity of the transaction, the urgency of the matter, the value of the property, the title issues involved and whether or not the purchase is being funded with the assistance of a mortgage.
It is imperative that you consider all these factors before instructing a solicitor. Every purchaser wants to avoid legal “loose ends” after the transaction is completed. It is important that you have competent professional advice to ensure that you avoid these problems, otherwise further expense may have to be incurred to rectify this.
So rather than asking “is my conveyancing expensive,” try finding out the value of your quote. What does it include? These are the questions that will save you money. After all, the day you buy is the day you sell!
If you would like assistance with purchasing, selling, re-mortgaging, down-sizing etc then don’t hesitate to get in contact with Fin at firstname.lastname@example.org or phone 021 4204122 for more information.