Abortive Costs When a Sale Falls Through, What You Lose and Can You Claim It Back

How Common Is It?

Approximately 30–35% of property sales in England fall through before exchange of contracts, according to research by property data firms and industry bodies. The figure spikes during periods of market uncertainty. Because exchange creates a legally binding obligation, every cost incurred before that point is at risk if a sale collapses.

Understanding who bears those costs, and how to limit them, is essential for any seller or buyer.

Why Sales Fall Through

Before looking at costs, it helps to understand why sales collapse:

What the Seller Loses

Solicitor / Conveyancer Fees

This is the most significant cost for sellers. Your solicitor will charge for work completed up to the point of collapse. The amount depends on how far into the process you are and what your solicitor's terms of business say.

**Typical abortive solicitor charges for sellers:**

• Early stage (title documents, contract pack prepared): £300–£600
• Mid-stage (enquiries raised and responded to): £500–£900
• Late stage (all work done, awaiting exchange): £700–£1,200

Many solicitors have a specific abortive fee policy in their client care letter. Read this carefully before instructing. Some firms charge a fixed abortive fee; others charge by time.

Official Copies of Title

Your solicitor will have obtained official copies of your title register from HM Land Registry (currently £3 per document). A small cost, but one you will pay again if the property is re-marketed and re-sold.

Leasehold Management Pack

If you are selling a leasehold property, you will have paid for a management information pack from your freeholder or managing agent. This can cost £150–£600 or more. These packs often expire after a set period and may need to be repurchased for a subsequent sale.

**This is one of the most painful abortive costs for leasehold sellers**, not only for the monetary loss, but because obtaining a new pack delays the next sale attempt.

Estate Agent Fees (Dependent on Contract)

Most estate agents operate on a no-sale, no-fee basis, meaning if the sale falls through before completion, you pay nothing. However, some contracts, particularly with online agents, charge upfront fees regardless of outcome. Check your agency agreement carefully.

Some estate agents also have a clause that entitles them to a fee if the buyer later purchases through a different agent, be aware of "ready, willing, and able" clauses.

What the Buyer Loses

Buyers often face greater abortive costs than sellers:

Conveyancing Searches

The buyer's solicitor orders searches (local authority, environmental, water and drainage, and others) typically before exchange of contracts. These are not refundable if the sale falls through.

Some solicitors now offer search insurance as an alternative to the actual searches, this can be refunded to the insurer if the sale fails, but the premium itself is still lost.

Survey Costs

If the buyer commissioned a RICS survey (Home Survey Level 2 or Level 3), that cost is entirely lost if the sale falls through. A Level 2 survey costs £400–£800; a Level 3 Building Survey costs £700–£1,500 depending on property size.

Mortgage Arrangement Fee

If the buyer paid a mortgage arrangement fee upfront (rather than adding it to the loan), this may or may not be refundable depending on the lender's policy. Some lenders refund if the sale falls through; others do not. The fee is typically £500–£2,000.

Buyer's Solicitor / Conveyancer Fees

As with sellers, the buyer's solicitor charges for work done. Buyer-side work is more extensive (ordering searches, reviewing title, reporting on the mortgage), so abortive charges may be higher.

**Typical abortive solicitor charges for buyers:**

• Early stage: £400–£700
• Mid-stage: £600–£1,000
• Late stage: £800–£1,400

Can You Claim Any Costs Back?

From the Other Party

In England, you generally **cannot** claim abortive costs from the other party if a sale falls through before exchange, even if their withdrawal was the cause. The legal principle is that neither party is committed until exchange. This is what makes the English property purchase system distinctly risky compared to Scottish law (where offers are legally binding) or many other jurisdictions.

There are two narrow exceptions:

1. **Lock-out agreement:** If a lock-out (exclusivity) agreement was in place and the seller accepted another offer in breach of it, the buyer may have a claim for breach of contract. However, these are rarely used and have limited enforceability. See our separate guide on lock-out agreements.

2. **Misrepresentation:** If one party made a fraudulent or negligent misrepresentation that induced the other to incur costs, a civil claim may be possible. This is rarely pursued for abortive costs alone due to the cost of litigation.

From Your Own Insurance

Some buyers purchase home buyers' protection insurance, which covers survey and conveyancing costs if a sale falls through for specified reasons (e.g. seller withdrawing, planning permission refused). These policies typically cost £50–£100 and cover up to £1,500 in abortive costs. They must be taken out before the survey is commissioned.

How to Minimise Abortive Costs

**For sellers:**

• Instruct a solicitor and prepare your contract pack early, this makes you a more reliable counterparty and can deter buyers from pulling out later
• Complete TA6 and TA10 forms accurately and comprehensively, many sales fall through due to buyers being surprised by information revealed late in the process
• Price realistically from the start to attract committed buyers
• Use Property Passport UK before listing to identify any data-level issues (EPC expiry, title anomalies) that might surface during due diligence

**For buyers:**

• Commission a survey early, better to find out about a structural problem at £600 than to lose £1,500 in solicitor fees and searches later
• Consider home buyers' protection insurance if the property has any obvious risk factors
• Obtain a mortgage agreement in principle before making an offer

Property Passport UK makes it easier for both parties to identify property-level issues before the sale commences, reducing the chance that a conveyancing discovery late in the process causes an expensive collapse.