No Sale No Fee Conveyancing: Is It Too Good to Be True?
The number of television, online and print advertisements promoting no win, no fee legal representation has increased significantly in recent years. In fact, we’re certain that you will have come across several such advertisements in the last week alone. Similarly, the number of conveyancing solicitors that are also offering a no sale no fee agreement has also increased. But is it actually just a little bit too good to be true?
What is a no sale no fee conveyancing agreement?
A no sale no fee agreement simply means that your conveyancing solicitor will work on your behalf with the knowledge that if the sale is not completed, you won’t pay for the services they have carried out. This type of agreement is particularly beneficial during periods of financial instability, which typically means that moving chains are more likely to fall through.
Although only 11% of property sales fell through in the third quarter of 2021 due to increased demand, this increased to a much more normal figure of 34%, in the final quarter of the same year.
So it is perfectly normal to see as many as one in three house sales falling through, and some of the most common reasons for property purchases falling through include:
– Gazumping
This is one of the most common reasons associated with a buyer’s house move falling through, as sellers are within their rights to accept a more attractive offer from another buyer until contracts are exchanged. Gazumping becomes more common when the housing market is fluctuating, as it is more likely to attract more buyers than there are sellers.
– Broken chains
If you’re part of a chain of sellers and buyers, your chance of successfully completing a purchase or sale is lower than if there isn’t a chain involved. This is because there are additional moving parts, all of which could run into problems or delays along the way, causing more pressure on what is often an already fragile chain.
– Signatures
In some cases, sellers may choose to accept purchase offers from numerous potential buyers. This means that sellers will send out contracts to more than one interested party. In order to successfully purchase the property in this situation, you will need to sign and return the contract and deliver the required deposit faster than the other interested parties.
The above is just one of many reasons why it is important to engage the services of a professional and competent conveyancing solicitor, such as Sam Conveyancing, who work with a hand selected team of surveyors, brokers and solicitors at every stage of the process.
What are the advantages of no sale no fee agreements?
During periods of financial uncertainty, buyers naturally want to maximise the value of every penny and simply can’t afford to pay for services that have no benefits. A no sale no fee agreement can minimise your purchasing costs by ensuring that if your first transaction fails through, you will not receive an invoice from your conveyancing solicitor for the legal work that was completed at any stage during that failed instruction.
Are there really no costs associated with no sale no fee agreements?
It is important to note that with a no sale no fee agreement, you will likely be required to pay a small upfront sum which covers the risks experienced by conveyancing solicitors offering this type of service. Additionally, there will generally be costs incurred for subsequent failed transactions, but you will only be invoiced for the percentage of work that was completed until the transaction failed.