Referral Fees
A referral fee is the payment of a fee by a solicitor or conveyancer to an introducer such as an estate agent for the introduction of a client. Many clients are unaware of this arrangement, If you are not made aware of the arrangement, the solicitor is breaching rule 9 of the solicitors’ code of conduct.
A recent report carried out by the Legal Services Consumer Panel suggested that over 50% of law practices involved in residential conveyancing had some form of referral arrangement. Estate Agents are the main source of referrals. Solicitors often pay between £100-300 for a referral of this nature. This can either increase the cost passed onto the client, or reduce the quality of the work carried out.
The same report found that the main source of competition in the conveyancing market is coming from “factory firms” processing volume work with, referrals as a core feature of the business model.
Hart Brown does not pay referral fees for conveyancing transactions.
Have you been referred to a solicitor without a choice? Have you ever used an “all in one package” from an estate agent that covers conveyancing fee’s? What did you think of the service you received? Let us know your thoughts, email residentialproperty@hartbrown.co.uk or write to us at Marketing Department, Resolution House, Riverview, Walnut Tree Close, Guildford, Surrey, GU1 4UX.