Understanding a conveyancing quote, line by line

What a conveyancing quote tells you

A conveyancing quote estimates what you will pay a law firm to handle your purchase, sale or remortgage, plus the third-party costs the firm pays on your behalf. A clear quote separates these so you can see where your money goes and compare firms fairly.

A Keyfolio quote is itemised in four parts: the legal fee, VAT, disbursements and, on a purchase, an estimate of property tax. It is based on the details you give, so it is only as accurate as that information. The law firm you choose confirms its fees in writing, in its client care letter (its terms of engagement), before you instruct it.

The legal fee and admin fees

The legal fee pays for the firm's own work: checking the title (the legal record of ownership), reviewing searches (reports from the council, water company and others), raising enquiries (questions to the other side), acting for your lender, exchanging contracts (the point where the deal becomes binding), completing (the day the money is paid and ownership passes) and registering the change of ownership. Most residential work is charged as a fixed fee, which often rises with the price, because higher-value transactions carry more risk.

Admin fees (some firms call them supplements) are extra fees for anything beyond a standard transaction. Common examples include:

• Leasehold property, because of the lease and the management pack
• New build homes, because of the developer's documents and deadlines
• Shared ownership, because of the housing association's requirements
• A gifted deposit, which needs extra identity and source of funds checks
• Buy-to-let, company and auction purchases
• Unregistered land, meaning property that has never been recorded at HM Land Registry

Check which admin fees apply to you, and ask the firm to confirm them before you instruct.

VAT

VAT is charged on the legal fee and admin fees at the standard rate, currently 20%. For example, a legal fee of £1,000 plus a £250 leasehold admin fee comes to £1,500 once VAT of £250 is added. These figures are only an illustration of the arithmetic, not typical prices.

Some disbursements carry VAT and others do not. HM Land Registry fees and property tax have no VAT, while some search providers add VAT to their charges. A clear quote shows VAT line by line, so you can see which items carry it.

Disbursements

Disbursements are payments the firm makes to other organisations on your behalf. Typical disbursements include:

• Property searches, such as the local authority, drainage and water, and environmental searches
• The HM Land Registry fee for registering the new owner and any new mortgage
• Official searches at HM Land Registry just before completion, and a bankruptcy search against each buyer, usually needed where there is a mortgage
• Identity and anti-money laundering checks, often charged per person

The fee for sending money by same-day bank transfer, often charged per transfer, is the law firm's own charge, with VAT, not a disbursement.

The HM Land Registry fee is set by law, currently the Land Registration Fee Order 2024, and the scales are published on GOV.UK. It depends on the price or value involved, and it is often lower when the application is made online. Search costs vary by supplier and area.

Property tax is shown separately. The firm collects it from you and pays it to HMRC or the Welsh Revenue Authority.

Leasehold, new build and other third-party fees

Some costs come from a landlord, managing agent, developer or housing association rather than the firm. On a leasehold sale, the managing agent charges the seller for the management pack, a set of information about the building and its charges. On a leasehold purchase, the landlord may charge fees after completion for registering notices of the new ownership and mortgage, and for a deed of covenant (a promise to keep to the lease) or a certificate needed to register your purchase.

Shared ownership purchases can involve fees from the housing association, and some freehold estates charge for confirming that estate charges are paid up. These fees are set by the third party, so a quote often shows them as estimates or as to be confirmed.

Items marked to be confirmed

Some costs cannot be known until the firm sees the documents, so a clear quote marks them as "To be confirmed", or gives an estimate, rather than leaving them out. Typical examples are:

• Landlord and managing agent fees, until the lease and pack are seen
• Extra searches suggested by the area or the title, such as a coal mining search
• Indemnity insurance, a one-off policy covering a specific legal risk such as a missing building regulations certificate
• Extra legal work if the title has a defect or the chain becomes complicated
• The exact property tax, once all the facts are checked

Ask the firm which items are most likely to change and by roughly how much. A quote that leaves these out can look lower without being lower.

Referral fees

Many introductions to conveyancers involve a referral fee: a payment from the law firm to whoever introduced you, such as a quote service, estate agent or mortgage broker. Solicitors regulated by the Solicitors Regulation Authority, for example, must tell clients about any financial or other interest an introducer has in referring them.

Keyfolio is paid this way. You do not pay Keyfolio anything directly. Law firms on our panel pay us for introductions and panel membership out of the fees they charge, so it is not an extra item on your bill. We tell you about it before you go ahead, and before you instruct a firm we tell you its name and what it pays us for your matter.

You are free to choose any conveyancer, and our referral disclosure explains the arrangements in full.

When you pay, and if the deal falls through

Many firms ask for money on account at the start, a payment in advance that usually covers the searches. The rest is normally paid shortly before completion, when the firm sends a completion statement showing the price, your mortgage, the fees and the balance you need to provide.

If your purchase or sale falls through, what you pay depends on the firm's terms. You will usually pay for searches already ordered, and you may pay some or all of the legal fee for work done, although some firms reduce or waive it if the transaction does not complete. Check this in the client care letter before you instruct. With Keyfolio, though, every law firm on the panel, other than a firm you choose instead (your quote page says whether it does too), works on a no completion, no fee basis: if your transaction does not complete, you pay no legal fee, only for disbursements already paid out for you, and on a sale whose buyer pulls out, your firm carries on with the next buyer on the same quote, and only if that buyer pulls out too can it charge for the work it has done.

Checklist: comparing quotes like for like

Two quotes for the same move can look very different simply because they include different things. To compare fairly:

• Compare the total including VAT, disbursements and admin fees, not just the headline legal fee
• Check both quotes use the same price, tenure (freehold or leasehold) and type of transaction
• Check both include the same searches and the same admin fees, such as for a leasehold or a gifted deposit
• Look for missing items, such as bank transfer fees or identity checks
• Ask what you pay if the transaction falls through
• Ask who will handle your file and how they will keep you updated
• Check the firm is on your lender's panel (the list of firms the lender uses), or your lender may need its own conveyancer at extra cost

The lowest headline fee is not always the lowest bill, and communication and reliability matter as much as price. Our guide to choosing a property solicitor covers what else to look for.

Next steps

Get an instant quote that separates the legal fee, VAT, disbursements and property tax estimate, with a PDF and a private link you can come back to. You can message us with questions about any line, and our fee schedule lists legal fees, additional work and disbursements. When you are ready, ask to go ahead, and the law firm will confirm its fees in writing before any work begins.