Who pays solicitor fees when the buyer pulls out?

There is nothing more frustrating and stressful when selling a home than when the buyer pulls out without warning. It can leave you sitting in limbo as you wait for your own house purchase to go through, and means you’ll have to put your property on the market again.

But, what actually happens when the buyer pulls out of a house purchase? Who foots the bill for the legal fees and how does it affect the conveyancing process?

Continue reading our guide as the experts at GD Property Solicitors explain it all.

How much does it cost to sell a house?

Whatever side you’re on, the costs involved with a property transaction are standard across the board.

[LINK] Average solicitor fees when selling a house sit at around £2000. On average, the standard legal fees for a conveyancing solicitor can be around £1270, with conveyancing disbursements of around £88. There are other costs, such as a bank transfer fee (£322), and more.

Solicitor legal fees also increase depending on the type and value of the property. For freehold properties up to £700,000, you could be expected to pay around £1600 in solicitor fees.

With leasehold properties, you’ll be expected to pay more – up to £1770.

What do you pay if the buyer pulls out?

Many conveyancing solicitors charge you no matter the outcome of the property transaction, but some offer a no sale, no fee guarantee.

If your property lawyer doesn’t offer this promise and still expects fees when a buyer pulls out, the legal fees you pay may differ depending on the stage of the conveyancing process you’re at.

A buyer withdrawing from a property transaction can occur for a variety of reasons that can leave both parties facing unexpected costs.

Here’s what tends to happen at different stages of the conveyancing process:

1. Before the exchange of contracts

• The buyer usually covers their own solicitor fees and property survey and search costs.
• The seller may have to pay their own legal fees.
• Neither party is legally obligated to complete the property sale.

2. After the exchange of contracts

• The buyer may be liable for both parties’ conveyancing fees.
• The buyer is at risk of losing their deposit.
• The seller may be able to claim additional compensation for losses.

3. Exceptional circumstances

• There may be specific contract terms that could alter legal fee responsibilities.
• A mutually agreed termination may result in shared legal fees.
• Unforeseen events may affect who pays.

Why do buyers pull out?

There are a multitude of reasons why a buyer pulls out of a house sale, and they can all cause plenty of stress for sellers.

Below, we’ve compiled a list of reasons why a buyer withdraws from a property transaction:

Change of heart

Unfortunately, a change of heart may make a buyer pull out, whether for personal reasons or they have changed their minds about the property.

The best way to avoid any change of heart is to try to ensure the process moves quickly and with minimal delays.

Using reliable and efficient conveyancing solicitors will give you, the seller, the best chance of moving the process along.

Negative survey results

A negative survey result is something nobody wants. Understandably, it can cause a lot of stress for both buyer and seller.

Even if the buyer has a mortgage agreement in place, they can pull out of the purchase following the survey reports, even if they’re liable for conveyancing costs.

Most survey reports will likely be clear, allowing the property transaction to go through without issue. However, some survey reports will identify key problems with the property that weren’t immediately clear on a house viewing.

Some buyers will negotiate a change in house price if issues are found during the survey, but there is a chance that they’ll pull out – especially if there’s no movement in the asking price.

Gazumped

There is also the situation where the seller could accept a higher bid than the already agreed price – causing the buyer to withdraw from the transaction.

Gazumping is a major problem in the housing market, especially when there’s a property chain involved. Buyers put into this situation can feel pressure to increase their offer if they’ve been gazumped, despite already agreeing on a price for the property.

When this occurs, they often pull out of the deal altogether.

No completion, no fee at GD Property Solicitors

If you choose GD Property Solicitors as your conveyancing solicitors, you’ll benefit from our ‘no completion, no fee’ promise.

What does this mean? Well, if your property sale falls through with no fault on your part, we won’t charge you conveyancing fees. This way, you’re not left out of pocket.

You may still have to cover some disbursement costs, such as property searches.

Sound good? If you’re interested in working with us, don’t hesitate to contact us by calling 0161 710 1786.