Conveyancers work through a long prescribed procedure for transfer of ownership of a property. Regulation allows the process be handled by licensed conveyancers. Nowadays, online conveyancers are becoming an alternative choice of tech savvy sellers and buyers that cuts down lot of paperwork to make conveyancing fees cost effective.
Traditional conveyancers are in a less advantageous position than their online counterparts as such charging more upfront fee to cover up their expenses. Generally, the fee gets added up further with a number of additional charges. Some conveyancing vendors offer fixed price deals including all sorts of additions. It becomes a matter of choice of buyers and sellers to go for what they like.
Online conveyancing prices come cheaper than availing services from traditional firms. Furthermore, it is easier to compare the quotes of different online conveyancing firms. There is no necessity of documentation on hard copies and incurring postage expenses. These online services can be easily availed by both the parties before or after finalisation of exchange of contract. But, many online conveyancers prefer getting into process after signing exchange of contract because it makes a deal legally binding. In fact, the process of property exchange becomes legally valid since buyers make certain deposits on exchange to cover up insurance charges for ownership of a new property.
In fact, involvement of conveyancers before finalisation of exchange of contracts becomes risky because either of the parties may change their mind deciding not to make a deal. Both the parties are required to pay for property survey, search, and all legal expenses. Hence, if a deal fails due to any reason, expenses incurred by the conveyancers is just a loss as they are not legally protected for cost recovery. Signing of the exchange of contract is treated as legal commitment for both the parties hence all activities of conveyancers are secured for conveyancing fees. Deviations from the fixed schedule of agreement for handing and taking over of the properties are considered breach of contract paving the way for legal steps.
The conveyancers avoid starting their activities for these logical reasons. An unrecorded understanding between a seller and buyer has no meaning. The pre purchase survey of the property may reveal considerable negative points of the property. May be it is structurally in extremely unsound position, the property falls under government developmental plan or the area is declared environmentally unsafe for living. Any of these findings from survey is strong enough to make the deals fail. Naturally, an involvement of conveyancers is flimsy and exposed to risk of collapse at any moment.
Times have changed as such a large number of middle class peoples dare think of owning a property using mortgage loan. Previously, the situation was reverse since majority of property buyers belonged to wealthy group of population and were able to afford high conveyancing fee. Now the situation has come down to even selling of property at discount in the matters of selling old property through involvement of tenants’ council. Additionally, the boom in property sale has increased the competition hence reduction in conveyancing fees.
Conveyancing prices- Reasons behind the Variation in Prices