When considering a residential / commercial property or even a land transaction, it is important to consider the level of conveyancing fees. However, it can be confusing for the general public as not everyone is sure what normal conveyancing quotes cover and what should be included in their quote.
What make up Conveyancing Fees?
Conveyance costs are composed of two separate items
Genuine disbursements should really differ much from conveyancing solicitors firm to firm, as these are payments made to third parties for dealing with certain aspects or services required in the transaction.
- Profit Costs
This is what the conveyancing solicitors or licensed conveyancers charge for their services and their time. It is these profit conveyance costs, that the conveyancing firm have control over and therefore the area where you can save the most money.
The profit element are conveyance costs and other charges shown on online conveyancing quotes. The total charges in this part of the total fee may be split up in to different headings by the conveyancing firm, however it is the bottom line total and VAT that you should be looking for. For example, some firms may charge an all inclusive conveyancing solicitors fees, which will include all costs that a firm might reasonably be expected to charge for. However, some firms will break these costs out separately, therefore giving a lower “legal fee” and charging extra for required services. Most firms will always charge separately for a bank transfer (also known as a telegraphic transfer). Other fees that you should ensure are included in the profit costs section of your conveyance costs are acting for your mortgage lender whether on the sale, remortgage or purchase of a property, completing and filing the Stamp Duty Land Tax Form and all letters and telephone calls.
What exactly are disbursements?
These include all the payments that are made by your conveyancer to a third party on your behalf. For a full list of these see our disbursements link here
- Freehold Purchase
Land Registry Fee (which is dependent on the value of the property)
Bankruptcy Search (currently £2 per person)
Land Registry Search (currently £4 per person)
Local Authority Search (dependent on the local Council)
Drainage Search (depends on the local water board) and then any area specific searches such as coal mining or tin mining.
These are the general items that you can expect to be included in your conveyance costs quote and that you should ensure are included when comparing different conveyancing fees charged by different conveyancing solicitors.