Home buyers are still being misled over conveyancing charges despite transparency rules on fees being introduced in December 2018.
A thematic review of how firms disclose conveyancing charges by legal regulator the Solicitors Regulation Authority (SRA), said that while clients were given quotes before agreeing to work, in one third of cases these initial quotes did not include fees for additional work which should have been reasonably anticipated at the outset.
Typically, these missing costs related to processing bank transfers, accessing online portals, mortgage administration fees, electronic ID checks or administering gifted deposits.
The SRA also found that 37% of residential conveyancing law firms failed to be transparent about the mark-ups they added to the fee a bank charged for making a telegraphic transfer. In some cases, this led to clients being charged as much as ten times the fee set by the bank.
Additionally, solicitors failed to explain the difference between freehold and leasehold models of ownership in nearly a quarter (23%) of leasehold purchases analysed in the review, the SRA said.
Six law firms have been referred to the SRA’s internal disciplinary processes for breaches as a result of the review.
Anna Bradley, chair of the SRA, said: “It is disappointing to see examples of poor practice in conveyancing, which is so important to so many people.
“While many law firms and solicitors provide a good service and act in their clients’ best interests, those who don’t are letting down not only their clients, but also the profession as whole.
“People should be able to rely on their solicitors to be open about what their services will cost, and to explain the potential financial and legal implications of any transaction.
“When solicitors fail to do this, for example in relation to long-term leasehold charges, they may be leaving their clients open to ever increasing and potentially unaffordable financial liabilities.
“We will now be looking closely at how firms are publishing their pricing for conveyancing through our programme of monitoring firms’ websites.
“We have already published information for the public on the issue of leaseholds and we will be sharing this report with the Government as it considers leasehold reform.”
Comments (5)
Not surprised. I have been in the business for over 50 years and all these additional “costs and expenses” have appeared on their clients bills as long as I can remember.
Time to ban conveyancers charging fees? Where’s shelter in all this? What about Corbett, surely his mob have something to say? What about the Chancellor , will he make an announcement in the autumn statement ?
The escape the scrutiny because most people think solicitors are hard working honest individuals who do a tough job that members of the public cannot do themselves.
Estate agents on the other hand are easy targets as most people think we are scoundrels who put our feet up drinking tea doing a job that they could easily do themselves……until they try and make a complete hash of it.
I cannot understand why conveyancers escape the scrutiny of the national press. Collectively, their industry is arguably one of the biggest problems facing home movers.
Hi Charlie, Lawyers haven’t escaped the national press. The Times published this article yesterday.
https://www.thetimes.co.uk/article/homebuyers-hit-with-hidden-bills-from-solicitors-nh9nfkqhj