Almost half of failed property transactions over the past year are the fault of conveyancing delays, while buyers pay more to use an estate agent’s legal service.
That is the bold claim of a young upstart in the conveyancing industry, LV= Legal Services.
The insurer, known more for car or home insurance, has entered the world of conveyancing and claims home buyers pay an extra £400 for an estate agent recommended conveyancer because they are unaware they can shop around.
According to the research, which does not mention referral fees paid to agents, 27% of property purchases have fallen through in the past five years and 48% were due to conveyancers holding up the process
This equates to more than 106,000 sales not going ahead last year as a direct result of poor conveyancing services, according to LV.
The insurer commissioned PCP Research to poll 1,000 adults who have purchased or sold a property in the UK over the past five years.
Those who used the conveyancer recommended by their estate agent paid £1,595 on average, whereas those who sought conveyancing services elsewhere paid £1,167 – a difference of £428.
Martin Milliner, claims director of LV= General Insurance, said: “It’s clear that in many instances the conveyancing industry isn’t working for consumers, and those who simply take their estate agent’s recommendation are most likely to pay the price.
“That’s why we have entered the market, offering transparent, high-quality conveyancing at a price that is right for the consumer, supplied and endorsed by the LV= brand they trust.”
Probably because we don’t recommend useless ones. You get what you pay for.
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amen
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“According to the research, which does not mention referral fees paid to agents…”
Is that because not all agents get a referral fee? We recommend a conveyancer and that is simply because we want to do the very best for our clients.
Incidentally, we always email the recommendation with a clause that states they are free to shop around to get the best price measured against best service.
When I bought an investment property 4 years ago, one of the biggest conveyancing companies wanted to charge me £1400 to send the file to me even though they had been paid £1400 by the client who aborted the purchase. I wonder if the “transparent” service being offered here will happily hand over a file to a new solicitor with no cost to the consumer? Given I have to pay a “fee” to cancel my car insurance (not LV) I doubt it very much, but I stand to be corrected
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Indeed. We recommend particular firms because they get the job done thoroughly and quickly.
Result = a happy vendor.
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We email contact details of the three main firms in our area and tell the clients to pick any of them or choose their own, in my experience they are all pretty equal (as in slow, don’t admit they are wrong, etc).
I have experienced many very good solicitors but in every case after a little time they go the same way. Don’t know why, may be because when I find a good one I recommend them and they end up getting snowed under.
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Certain conveyancers are good if you want quick, some for being cheaper, some more thorough, some with Leasehold transactions versus Freehold – not all sellers and purchasers want the same thing and different firms/individuals provide different services
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The only reason **** conveyancers get work is because they pay back hander’s to Agents. You normally find it it’s Corporate’s and greedy independents that are making these referrals. Of course the problem with **** conveyancers is sometimes the purchaser ends up not being correctly advised and whilst as agents we don’t want create problems – it is nice to think that everybody purchaser and seller understand exactly what they are doing.
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It’s tough times out there but my firm would never resort to looking for a back hander/brown envelope for the minute or so it takes to recommend a good solicitor.
We are recompensed by the job being done properly.
It’s tantamount to a scam and should be stopped.
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There was a consortium of corporate and big agents some years ago that used the practice of only recommending particular conveyancers and lenders for commission and backhanders, disadvantaging both other agencies and the public as the fee’s were invariably higher than shopping around. One set-up was called “AMPS” (where are you Trev, that was a cartel) and I see some big agents appear to still be operating this system today.
When asked for conveyancing recommendations we may suggest at least three which we have experience of being reliable and efficient and make it clear we receive no commission or backhanders and that not all maybe the cheapest, so shop around. Have you ever noticed who always get the probate work from a particular solicitors firm!
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Solicitors Regulatory Rules are quite clear we are not permitted to charge the client extra by way of the referral fee. Thus if my charge is £500 plus vat and I give £100 to a referrer then I don’t charge the client £100.00 I lose £100 and make £400 instead.
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The “Solicitors Regulatory Rules” don’t work when a solicitor always charges over the odds, as they get 99% of the work due to paying referral fee.
Personally I would like to see it outlawed for an agent to make any money directly or indirectly from conveyancing or mortgages.
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