When Do You Pay Conveyancing Fees?
When Are Conveyancing Fees Paid When Buying or Selling a Property?
Conveyancing costs aren’t always paid in one lump sum at the end of your transaction. You may be asked to pay money at several different stages, depending on whether you’re buying, selling or remortgaging and how your conveyancer structures their fees.
You might pay an amount when you first instruct your conveyancer, money on account for searches or other third-party costs during the transaction, and the remaining balance before or on completion.
Understanding when payments are likely to be required can help you budget for your move and avoid unexpected requests for funds as completion approaches.
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When Do You Normally Pay Conveyancing Fees?
There isn’t one payment schedule used by every conveyancing firm.
However, payments commonly arise at three broad stages:
Stage |
What you might pay |
|---|---|
|
When you instruct |
An initial payment or money on account |
|
During conveyancing |
Searches and other costs required as the transaction progresses |
|
Before or on completion |
The outstanding legal fees, VAT, disbursements and other amounts due |
Your conveyancer should explain their payment arrangements when you instruct them.
The exact timing can also differ between buying, selling and remortgaging.
For more help understanding the different costs involved in a property transaction, explore our Conveyancing Costs guides.
Do You Pay Conveyancing Fees Upfront?
You may be asked to pay some money when you first instruct your conveyancer, but this doesn’t necessarily mean paying the entire conveyancing bill upfront.
A firm might request an initial payment to:
- open and begin work on your file
- provide money on account
- cover early third-party costs
- pay for property searches where you’re buying
The amount and arrangement vary between firms.
Any money paid at the beginning should be reflected in the financial account for your transaction so that you’re not paying the same amount again later.
Before instructing, check both how much you’ll need to pay initially and when the remaining balance will become due.
For more information about what’s included within the figures you’re quoted, see What Do Conveyancing Fees Include?
When Do You Pay for Property Searches?
If you’re buying a property, your conveyancer will usually need funds before ordering the required searches because the search providers need to be paid when they are requested.
Some firms ask for money specifically for the searches, while others include the anticipated search costs within a larger initial payment on account.
Either way, searches will generally need to be funded before they can be ordered.
Explore: Property Searches →
When Do You Pay Conveyancing Disbursements?
Disbursements and other third-party costs can arise at different stages of a property transaction.
Some are required relatively early, while others only become payable later.
For example:
Cost |
When might it arise? |
|---|---|
|
Property searches |
During the early stages of a purchase |
|
Land Registry searches |
Usually later in the transaction |
|
HM Land Registry registration fee |
Associated with post-completion registration |
|
Leasehold-related charges |
At various stages depending on the transaction |
|
Indemnity insurance |
If a relevant issue is identified |
|
Other third-party costs |
As and when the relevant service or document is required |
Your conveyancer may ask you for additional money during the transaction if a cost arises that wasn’t covered by funds you’ve already provided.
For a detailed explanation of these costs, see Conveyancing Disbursements.
When Do You Pay Conveyancing Fees When Buying a House?
When buying a property, you may make several payments during the conveyancing process.
A typical sequence might look like this:
1. You Instruct Your Conveyancer
You may be asked for an initial payment or money on account.
Your conveyancer can then open the file, complete the necessary initial procedures and begin work.
2. Searches Are Ordered
If searches are required, funds will normally need to be available before they’re ordered.
This may be covered by your initial payment or requested separately.
3. The Transaction Progresses
Additional third-party costs may arise as your conveyancer investigates the property and prepares for exchange and completion.
4. Before Exchange
If a deposit is required on exchange of contracts, your conveyancer will tell you how much money needs to be available and when it must be transferred.
The exchange deposit is not a conveyancing fee. It forms part of the money being paid towards the property purchase.
Explore: Exchange of Contracts →
5. Before Completion
Your conveyancer will normally provide a financial statement showing the purchase price and the funds already available, together with legal fees, VAT, disbursements, applicable property transaction tax and any other amounts due. It will show the balance you need to provide in sufficient time for completion.
6. Completion and Afterwards
On completion, the required purchase funds are transferred to the seller’s conveyancer.
Your conveyancer can then deal with relevant post-completion matters, including registration of your ownership.
Explore: Completion Day →
When Do You Pay the Deposit When Buying a House?
It’s useful to distinguish the exchange deposit from your conveyancing fees.
The deposit is part of the purchase price rather than payment to the conveyancer for their legal work.
When contracts are exchanged, a deposit may need to be transferred or otherwise accounted for as part of the contractual arrangements.
Your conveyancer will tell you what is required for your particular transaction.
If you’re simultaneously selling another property, the way the deposit is dealt with can differ because funds connected with the sale may be used within the chain.
This is one reason you should follow your conveyancer’s instructions rather than assuming you’ll need to transfer a particular percentage at a particular time.
When Do You Pay Stamp Duty?
If Stamp Duty Land Tax (SDLT) is payable on a property purchase in England, your conveyancer will normally calculate the amount due based on the information provided and deal with the relevant return and payment following completion.
In Wales, the equivalent property transaction tax is Land Transaction Tax (LTT).
Although the tax is dealt with as part of the conveyancing process, it isn’t your conveyancer’s legal fee.
Where tax is payable, your conveyancer will normally require the necessary funds from you so that the payment can be made within the applicable deadline.
The amount can be significant, so any expected property transaction tax should be considered when budgeting for your purchase rather than treated as an incidental conveyancing expense.
When Do You Pay Conveyancing Fees When Selling a House?
Selling usually involves a slightly different payment pattern because there aren’t normally property searches to fund in the same way as a purchase.
You may still be asked for an initial payment when you instruct your conveyancer, particularly if third-party costs need to be incurred before completion.
In many transactions, the outstanding conveyancing costs can ultimately be deducted from the sale proceeds.
Once the buyer’s money has been received, your conveyancer can account for matters such as repayment of an existing mortgage, outstanding legal fees, VAT and disbursements before transferring the remaining balance to you.
Your completion statement should show how the money has been accounted for.
What Is a Conveyancing Completion Statement?
A completion statement is an important financial summary showing the money received, the amounts payable and the balance needed from you — or due back to you — as the transaction completes.
For a purchase, this can include the purchase price, deposit, mortgage advance, legal fees, VAT, disbursements, property transaction tax and the balance you need to provide.
For a sale, it can show the sale price, mortgage redemption, legal fees, VAT, disbursements, other authorised deductions and the net balance due to you.
Review the statement carefully and ask your conveyancer about anything you don’t understand.
When Should You Send Completion Funds to Your Conveyancer?
If you’re buying, your conveyancer will tell you how much money they require from you and when it needs to arrive.
Don’t leave the transfer until the last minute.
Completion can’t take place until the necessary funds are available, and large bank transfers can sometimes require additional security checks or arrangements with your bank.
You should follow the conveyancer’s payment instructions carefully.
Property transactions involve large sums of money and conveyancing firms will normally have procedures for confirming their bank details securely.
If you receive an unexpected message telling you that your conveyancer’s bank details have changed, don’t transfer money using the new details without independently verifying them with the firm through a trusted contact method.
Do You Pay Conveyancing Fees Before or After Completion?
It depends on the transaction and the conveyancing firm’s arrangements.
For a purchase, the conveyancer will generally need sufficient cleared funds before completion to cover the amount required from you.
For a sale, outstanding legal fees and other authorised costs may be deducted from the sale proceeds before the remaining balance is transferred to you.
However, firms can structure their payment arrangements differently.
Your quotation and terms of business should explain when the legal fee and other costs become payable.
What Happens to Conveyancing Fees if the Sale Falls Through?
This depends on the terms you agreed with your conveyancing firm.
If a purchase or sale falls through before completion, the conveyancer may still have carried out substantial legal work.
You may therefore remain responsible for:
- legal work already completed
- property searches already ordered
- other third-party costs already incurred
Some firms offer arrangements commonly described as no sale, no fee or no completion, no fee, but the precise terms can vary.
Even where the firm’s legal fee isn’t payable following an unsuccessful transaction, third-party costs already incurred may still need to be paid.
Check the terms carefully so you understand what happens if your transaction doesn’t reach completion.
Money paid on account that hasn’t been used may be treated differently from costs already incurred, so check your conveyancer’s terms to understand what would be refundable.
When Do You Pay Conveyancing Fees for a Remortgage?
The payment process for a remortgage can differ from a purchase or sale.
There is no property purchase price to transfer, but your conveyancer may need to deal with the existing mortgage, new mortgage funds, legal fees, Land Registry matters and other relevant third-party costs.
Some mortgage products include a legal service or contribution towards legal costs. Where you are responsible for the costs yourself, your conveyancer should explain when payment is required.
On completion, the new mortgage funds can be used to repay the existing lender, with the remaining financial balance dealt with according to the transaction.
For more information about the process, see Remortgaging.
How Can You Avoid Unexpected Conveyancing Costs?
Before instructing, make sure you understand what the quotation includes, how much you need to pay initially, which third-party costs are expected and when further payments are likely to be required.
You should also check when additional legal fees could arise and what happens to the firm’s legal fee and any third-party costs if the transaction falls through.
Understanding the payment arrangements from the beginning makes it much easier to budget throughout the transaction.
Explore: Questions to Ask Before Instructing a Conveyancer →
When Do You Pay Conveyancing Fees? Quick Answers
Why Choosing the Right Conveyancer Matters
A property transaction often involves conveyancers, estate agents, mortgage brokers, lenders and other professionals working together. Good communication between everyone involved can make a significant difference to how smoothly the transaction progresses towards exchange and completion.
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