Failed Property Purchase — Do You Still Pay Conveyancing Fees?

What Happens to Conveyancing Fees If Your Purchase Falls Through?

In England and Wales, neither buyer nor seller is legally committed to a transaction until **contracts are exchanged**. Before that point, either party can withdraw at any time and for any reason without owing the other party compensation. This is often referred to as the "race to exchange" — and it is one of the defining (and most frustrating) features of the English property buying system.

The legal freedom to withdraw is, however, entirely separate from the question of what costs you have already incurred. When a purchase falls through before exchange, several professionals will have done work on your behalf — and some or all of that work will need to be paid for.

Use our [Conveyancing Calculator](/conveyancing-calculator) to understand total expected costs before you commit to instructing.

Conveyancing Fees on an Abortive Transaction

No-Sale-No-Fee Arrangements

Many conveyancers — particularly online and national firms — offer a **no-sale-no-fee** guarantee. Under this arrangement, if the transaction falls through before completion (or sometimes before exchange), the conveyancer charges nothing or a minimal fixed abortive fee, typically £100–£200.

No-sale-no-fee policies vary widely in their terms. Read the small print carefully:

• Does the guarantee apply if **you** withdraw, or only if the **seller** withdraws?
• Does it cover disbursements (searches, Land Registry fees) as well as the legal fee?
• Is there a time limit — e.g. does it only apply if the transaction falls through after a certain stage?
• Are there circumstances that void the guarantee — for example, if the buyer fails to comply with the conveyancer's requests?

A genuine no-sale-no-fee policy that covers the legal fee (not disbursements) and applies regardless of why the transaction fails provides real financial protection.

If Your Conveyancer Does Not Offer No-Sale-No-Fee

Traditional solicitors and some regional firms charge for work done. On an abortive purchase, the typical charge is based on the stage reached:

• **Before searches ordered, minimal enquiries raised** — minimal charge, perhaps £200–£400 plus VAT
• **Searches ordered and reviewed, enquiries raised and answered** — the majority of the legal work may have been completed. The charge could be £500–£900 plus VAT
• **Exchange delayed but close** — a transaction that falls apart after months of work, with all investigations complete, could attract a charge approaching the full legal fee

Your conveyancer should be transparent about what they will charge if the transaction fails. Ask explicitly before instructing: "What is your abortive charge if the purchase falls through at each stage?"

Disbursements — What Is Not Recoverable

Even under a no-sale-no-fee arrangement, disbursements that have already been incurred are almost never refunded:

• **Search fees** — once searches have been ordered and results returned, the cost (typically £250–£400) is not recoverable. Some search providers will allow transfer of results to a replacement transaction on the same property
• **Land Registry official copies** — a minor cost (£3–£6 per document) but not recoverable
• **ID / AML check fees** — not recoverable once carried out
• **Electronic transfer fees** — not applicable if no completion occurred

If the transaction falls through **before searches are ordered**, the disbursement exposure is minimal.

Other Costs Lost on a Failed Purchase

Survey Costs

If you commissioned a homebuyer's report or building survey — typically £400 to £1,200 depending on the survey type and property value — this cost is lost entirely when a purchase falls through. Survey reports are property-specific and cannot be reused for a different purchase.

Mortgage Arrangement Fee

Many mortgage products carry an arrangement fee of £500 to £2,000. If the fee has been paid upfront and the transaction falls through, it may be partially or wholly non-refundable depending on the lender's terms. Some lenders refund the fee if the mortgage offer never completes; others do not. Check the terms of your mortgage offer.

Mortgage Valuation Fee

Lenders commission a valuation of the property as part of the mortgage underwriting process. This is typically paid by the borrower. If the purchase falls through after the valuation has been conducted, this cost — typically £150–£500 — is not recoverable.

Can You Recover Costs From the Other Party?

In England and Wales, there is no legal mechanism to recover pre-exchange costs from a seller who withdraws, gazumps, or accepts a higher offer from another buyer. Occasionally, estate agents facilitate a goodwill payment, but this is entirely voluntary.

**Lock-out agreements** (also called exclusivity agreements) can offer limited protection — the seller agrees not to negotiate with other buyers for a fixed period in exchange for a fee. However, they are not widely used in residential transactions.

What You Can Do

• Choose a conveyancer who offers a genuine no-sale-no-fee guarantee from the outset
• Do not order searches until your mortgage offer is confirmed and the chain is stable
• Ask your conveyancer to flag clearly at each stage what the abortive cost would be if the transaction failed at that point
• Consider whether a conveyancing insurance product suits your circumstances — some policies cover abortive costs up to a fixed limit

For a full cost estimate before you instruct, visit our [Conveyancing Calculator](/conveyancing-calculator).