Conveyancing Fees as a % of purchase price? Is this okay?

andybookie

The title says it all really:
A solicitor is quoting based on % of purchase price.
I heard from someone that this is against regulations.
Did I hear right?

Stanford

Its not illegal but it is unfair on the Purchaser because the amount of work the Solicitor has to do is not dependant on the price of the property

coylemj

Stanford wrote: »

Its not illegal but it is unfair on the Purchaser because the amount of work the Solicitor has to do is not dependant on the price of the property

+1 ditto probate, which often involves just a few bank accounts and one property. As property values goes up, so does the fees.

OP, negotiate a fee.

Peregrinus

It used to be standard, and when conveyancing fees were set by regulation that's how they were set. Competitive pressures (and rising property values) meant a move a way from ad valorem fees to fixed fees. But there is nothing illegal about quoting an ad valorem fee.

Estate agents still charge ad valorem fees.

It's true that the amount of work doesn't go up in line with the price of the property (although it does tend to go up; there is typically more work to to, the greater the value of the property). But the amount of the fee doesn't depend purely on the amount of work; it also depends on the value of the work (to the client) and on the degree of risk which the solicitor is assuming.