How to Choose Between A Solicitor and A Conveyancing Company - By: Traderdog

After the agent's fees, the dreaded stamp duty, the removal fees, there is also the legal bill to be added to the list of expenses whenever you buy a house. For advice on how to choose between a solicitor and a conveyancing company, read on and learn how to save money.

Until legislation was relaxed a few years ago, there was no alternative but to engage the services of your local solicitor. He/she would have been necessary to act on your behalf for searches and all the other boring but necessary legal details that need attention.

Traditionally their conveyancing quote was based on a percentage of the property price in much the same way as estate agents still operate. Even here the price quoted to the client could vary depending on who was dealing with the business, i.e. a Partner or Associate Solicitor.

Conveyancing firms now offer fixed pricing based on the price of the property, however there are still traps to look out for.

Don't just look at the headline quote, you will need to make sure that what you see is what you get. A number of these new companies have adopted a pricing structure that relies on a low main legal fee which is then increased significantly by additional charges. This can be the case with on-line quotations.

Therefore, it pays to speak to a human - not a recorded tape - and make sure you are clear in your own mind exactly what you are receiving and what your eventual bill is likely to be.

Many companies will charge extra for dealing with a leasehold property because of the extra work involved. Also make sure that the following items are included in any quotation you accept:

Completion of stamp duty forms
Contribution to indemnity insurance
Acting for your lender if there is a mortgage involved
Postage and storage

You should only be charged additional fees if there is genuinely additional work undertaken that could not have been foreseen when instructed. Ask for this to be explained to you.

The standard disbursements you should expect on a purchase are stamp duty (for purchases over �125,000), land registry fee, bankruptcy search fee, telegraphic transfer fee and relevant property searches dependent on whether the property you are buying has an Home Information Pack.

As a general rule of thumb, most legal firms will always do at least three searches on a purchase property - local, water and environmental.

However, any property with a HIP should already contain the local and water searches. If you are taking a mortgage the lender may still insist that an environmental search be completed before they will lend money on the property.

What happens if, unfortunately, your case does not complete? You may be billed a percentage of the legal fee based on how far the transaction had progressed.

Ideally you should look for a conveyancing firm working on a no completion, no fee basis. This means that if you do not complete the sale or purchase you will only be charged for disbursements that have been paid out on your behalf.

From this you will see that when choosing a firm to carry out your conveyancing you must be aware of the possibility of these hidden charges and ensure you compare all quotes on a like for like basis.

Having recently been involved in buying and selling several properties it is possible to gain more first hand information on this whole subject from my web site - http://www.save-money-guide.com.

About the Author

Traderdog is an experienced author, writing only from personal experience on a variety of subjects. She runs a successful web site where it is possible to read all her excellent money saving tips. http://www.save-money-guide.com

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