How to Confirm No Hidden Fees Before Selling Your House to a Quick Sale Firm
Worried about the fine print in quick property sales?
You're not alone—many sellers lose out due to undisclosed charges by property buying companies. Learn how to spot and verify these before you sign.
Step 1) Request a Detailed Fee Breakdown
Begin by directly contacting the quick sale company to request a comprehensive breakdown of all fees and charges involved in the transaction. Obtaining this information upfront is essential to ensure transparency and avoid surprises at closing.
What to Do:
- Contact the Company: Reach out via email or phone. Be clear and concise in your request for a detailed listing of all transaction-related fees.
- Specific Request: Ask for an itemised list that includes each fee, what it covers, and its amount. Ensure they confirm whether these costs are fixed or if they could vary by the transaction's circumstances.
Getting a clear understanding of all fees early in the sales process ensures you can plan your finances effectively and ensures the offer price reflects the true amount you will receive.
Step 2) Check the Contract for Fee Clauses
Carefully examine your sales contract to pinpoint any clauses that might lead to additional fees. This step is vital to ensure that you're fully aware of what you are agreeing to before finalising the deal.
What to Do:
- Review Each Clause: Go through each section of the contract meticulously. Pay special attention to clauses related to closing costs, agent commissions, legal fees, and administrative charges.
- Seek Clarification: If you encounter any vague or unclear language regarding fees, ask for explicit clarification from the company or a legal advisor.
Related: Cash buyers vs Estate agents costs
Property expert Jennifer Kelly Geddes advises:
"Clauses bring clarity to complex real estate transactions, ensuring transparency. They help establish trust, fostering a sense of security for all parties involved" (realtor.com). This underscores the importance of thoroughly reviewing all contract clauses to avoid unexpected costs"
Step 3) Get a Written No-Fee Guarantee
To solidify your financial understanding and security in the property transaction, obtain a written statement from the cash buying firm explicitly confirming that there are no hidden fees or additional charges beyond those already disclosed.
What to Do:
- Formal Request: Send a formal request to the company asking for a written confirmation that all fees have been disclosed and there will be no further charges.
- Specific Language: Ensure the document clearly states that the amount agreed upon is comprehensive and final, covering all costs associated with the transaction.
Having this guarantee in writing not only provides you with legal protection but also peace of mind. It ensures that the financial terms agreed upon are final, preventing any last-minute surprises that could affect your property sale's profitability and smooth progression.
Step 4: Get an Independent Contract Review
To further safeguard your interests, engage a property lawyer or legal advisor to conduct an independent review of your sales contract. This professional examination ensures that no hidden fees or unforeseen liabilities are present.
What to Do:
- Hire a Specialist: Choose a property lawyer or legal advisor with experience in real estate transactions.
- Detailed Review: Instruct them to scrutinise the contract meticulously for any clauses or terms that could impose additional costs on you.
https://solicitors.lawsociety.org.uk/ is a great place to start searching for a lawyer.
Checklist for Lawyer’s Contract Review
- Fee Clauses: Identify all clauses that involve payments, including commissions, processing fees, and penalties.
- Contingency Fees: Look for any fees dependent on certain events, like delays or changes in terms.
- Termination Rights: Check the conditions under which you or the other party can terminate the contract and any associated fees.
- Automatic Renewals: Verify if any clauses automatically renew the agreement, potentially incurring ongoing costs.
- Legal and Administrative Costs: Confirm who is responsible for these costs and if there are limits to these charges.
Final Thoughts and Key Takeaways
When selling your home through a quick sale company, it’s crucial to ensure you’re not caught off guard by hidden fees. Here’s a quick recap to keep your sale transparent and fair:
- Request a Detailed Fee Breakdown: Start the process by clearly asking for an itemised list of all transaction fees directly from the company.
- Scrutinise the Contract for Fee Clauses: Review your sales agreement closely to identify any sections that could potentially add unexpected costs.
- Secure a Written No-Fee Guarantee: Make sure you get a written statement confirming all possible fees have been disclosed, with no surprises.
- Get an Independent Contract Review: Have your contract double-checked by a property lawyer or legal advisor to catch any hidden fees you may have missed.
These steps are your best defense against unforeseen expenses and will help ensure that the selling process goes smoothly.
Keep a sharp eye on every detail of your property sale. Follow these guidelines carefully to avoid any hidden surprises and to make sure you get every pound your property is worth. Understanding and confronting these details from the start will not only save you stress but also potential financial loss. If you ever feel unsure, don’t hesitate to consult a professional to help clarify any part of your sale agreement.
Related: What is my house really worth?
