A house sale falling through can be frustrating, especially when you’ve already spent time and money preparing for your move. One of the first questions you might have is whether you’ll still need to pay your solicitor.
Solicitors can charge fees if a house sale falls through, even if the transaction never reaches completion. The amount you’ll owe will depend on the work already carried out, your solicitor’s terms and the stage at which the sale falls through.
Here’s what you need to know about conveyancing fees, potential costs and the options available if your property sale doesn’t go ahead.
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What Solicitors’ Fees Might You Still Have to Pay?
Conveyancing solicitors carry out legal work throughout the property transaction, so some fees may still apply if the sale falls through.
Your solicitor may have already completed tasks such as:
- Reviewing property documents and preparing contracts.
- Responding to enquiries from the buyer’s solicitor.
- Communicating with estate agents, lenders and other parties.
- Reviewing title information and addressing legal issues.
- Preparing documents needed to progress the sale.
Some solicitors charge for the work completed up to the point the transaction ends. Others offer fixed-fee arrangements or policies that reduce certain charges if a sale doesn’t proceed.
You’ll also need to consider disbursements, which are payments made to third parties during the conveyancing process. These might include Land Registry documents or other transaction-related expenses. Charges already incurred may remain payable even if the sale falls through.
Your solicitor’s terms of engagement should explain how fees are calculated and which costs you’ll remain responsible for if the transaction doesn’t complete.
Do You Pay Solicitors’ Fees if the Buyer Pulls Out?
If your buyer pulls out before exchanging contracts, you may still need to pay your solicitor for work already completed.
In England and Wales, a property sale generally becomes legally binding once contracts have been exchanged. Before exchanging contracts, either party can usually withdraw from a property transaction without breaching the sale contract, although legal fees may still apply. The reasons for pulling out of a house sale or purchase can vary, and the timing of that decision will affect the potential financial consequences.
However, withdrawing doesn’t automatically remove the costs you’ve already incurred.
For example, your solicitor may have prepared the draft contract, responded to enquiries and completed other legal work before the buyer decided not to proceed. Depending on your fee agreement, you could still receive a bill for some or all of that work.
What Happens if a House Sale Falls Through After Exchange?
A sale falling through after contracts have been exchanged can have more serious financial consequences.
At exchange, the buyer and seller enter into a legally binding agreement. If either party fails to complete without a valid contractual reason, they could face financial claims from the other party.
Depending on the circumstances, consequences may include:
- Liability for losses caused by the breach of contract.
- Additional legal costs associated with resolving the failed transaction.
- Contractual remedies relating to the buyer’s deposit.
The exact consequences depend on the contract terms, the reason completion hasn’t taken place and the action taken by the parties.
Your solicitor can explain your legal position and the options available if problems arise after exchange.
Can You Avoid Solicitors’ Fees if Your House Sale Falls Through?
Some conveyancing firms offer no sale, no fee arrangements, which may reduce the legal fees payable if a transaction doesn’t complete.
However, these arrangements can vary between providers. Some may waive their own professional fees while still charging for third-party expenses or work that falls outside the agreement.
It’s important to check the terms before instructing a solicitor, particularly:
- Which legal fees are covered if the sale falls through.
- Whether third-party expenses remain payable.
- If any exclusions or conditions apply.
- What happens if you decide to withdraw from the transaction.
You may also come across insurance products designed to cover certain expenses if a property transaction falls through. Eligibility, coverage limits and exclusions will depend on the individual policy.
Before proceeding with a property sale, ask your conveyancer to explain what you’ll be charged if the transaction doesn’t complete. Understanding the potential costs early can help you make informed decisions.
Want to know exactly what you would pay? Get a fixed fee quote from our house sale solicitors.
What Should You Do if Your House Sale Falls Through?
If your house sale doesn’t go ahead, your next steps will depend on why the transaction ended and how far it had progressed.
Start by speaking to your conveyancer. They can explain any outstanding fees, confirm which legal work has been completed and advise on matters that may need attention before you attempt another sale.
It’s also worth reviewing your original fee agreement so you understand any charges that may apply.
If you plan to put your property back on the market, ask whether any of the documents or legal work already completed could be used for a future transaction. Some information may remain relevant, although further checks or updated documents could be necessary.
A collapsed property chain can also affect several transactions at once. If other buyers or sellers in the chain withdraw, the disruption can delay your sale or prevent it from going ahead. Find out more about what happens when a property chain collapses in our guide.
Get Clear Conveyancing Advice With LPL
Unexpected changes during a property sale can leave you with questions about costs, legal responsibilities and what happens next.
At Leading Property Lawyers, our experienced conveyancing team can guide you through the legal process, explain the fees associated with your transaction and keep you informed as your sale progresses.
If you’re preparing to sell your property, talk to our conveyancing team to discuss your requirements and find out how we can help.
Ready to sell your property? Get an instant quote from our house sale solicitors, with fixed legal fees from £600 + VAT.
