Who Pays Solicitor Fees When Buyer or Seller Pulls Out?

Sellers pay an average of £1,315 when a buyer pulls out. Buyers pay £1,655 when a seller pulls out. Here's what you're liable for and when — and how to protect yourself.

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Key Numbers

Buyers and sellers must pay various conveyancing fees when undergoing a property transaction. These payments include legal fees, searches, and disbursements. A general rule of thumb is that the further along in the process you are, the more fees you will likely pay if the sale falls through.

Do Solicitors Charge if Sale Falls Through?

Solicitor charges are dependent on how far along the sale is. If your solicitor has a No Sale, No Fee guarantee, you should be able to recoup your legal fees, although any conveyancing disbursements will not be reimbursed. Many fixed-fee conveyancing solicitors also do not charge if the sale falls through.

1. Before the Exchange of Contracts

Either side can pull out of the transaction before exchange without any legal repercussions. Depending on how far along the process was, you may be able to request the other party cover your fees. You will still need to pay for legal work completed and disbursements (like searches) already ordered. Always check your signed agreements for any penalty clauses.

2. After Exchange but Before Completion

⚠️ Both sides are legally bound after exchange

No Sale No Fee Won't Protect You From Everything

It protects legal fees — but you still lose disbursements. Compare conveyancers to find the best coverage.

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Why Do Buyers Pull Out?

Change of Heart

Buyers sometimes have a change of heart, influenced by market conditions or finding a better property. An efficient conveyancing process with minimal delay is best to prevent a buyer from being put off.

Survey Issues

A survey revealing structural defects, damp, or subsidence can cause buyers to pull out. Some buyers will renegotiate the price instead, while others withdraw entirely.

Mortgage Issues

If a buyer's mortgage application is declined, or if the lender's valuation comes in below the agreed price, the purchase may fall through.

Chain Collapse

If the buyer's own sale falls through, they may be unable to proceed. Chain collapses are one of the most common reasons transactions fail in England and Wales.

Gazumping

The seller accepts a higher offer from another buyer before contracts are exchanged. Legal but unfair — and a good reason to push for a quick exchange.

How to Protect Yourself Financially

FAQs

Can a seller pull out after accepting an offer?

Yes — in England and Wales, a sale is not legally binding until contracts are exchanged. The seller can withdraw at any time before exchange without legal penalties, though they may be liable to cover some of the buyer's costs depending on the circumstances.

What is a non-refundable deposit if I pull out after exchange?

After contracts are exchanged, the buyer typically has paid a 10% deposit. If the buyer pulls out, the seller keeps the full deposit. The seller can also potentially sue for any additional losses above the deposit amount.

Does No Sale No Fee cover disbursements?

No. No Sale, No Fee only protects the solicitor's legal fee. Disbursements (searches, Land Registry fees, AML checks) that have already been paid out to third parties on your behalf are not refundable, even with a No Sale No Fee arrangement.

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No Sale No Fee Conveyancing When to Pay Solicitor Fees Pulling Out of a Property Sale Average Conveyancing Fees