Conveyancing Fee Dispute
The client sold a property in Western Australia and faced significant delays as the buyer's solicitors took several months without reaching exchange and completion. Frustrated, the buyer changed solicitors, causing the client to incur an additional charge of approximately $2,500 for an abortive sale from their own solicitor. The client's solicitors are now charging around $3,500 again for conveyancing with the buyer's new solicitors, treating it as a new sale. The client feels unfairly charged as they complied with all requirements and believes the repeated fees are unjustified. They question the legitimacy of these charges, given the prolonged process and change of solicitors instigated by the buyer.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkIs it legal for my solicitor to charge me for an abortive sale due to the buyer's solicitors' delay, and then charge again as if it's a new sale with the new solicitors?
In Australia, solicitors can charge for an abortive sale if work has been done and the sale does not complete due to factors beyond their control. This includes delays by the buyer's solicitors that cause the transaction to fall through. However, solicitors should provide a clear fee structure and the basis of charges in their client care letter or terms of engagement. Charging for a new sale is permissible if the fee structure supports this, as a new transaction often entails additional work. Review your solicitor's terms and consult with them for clarification on their fee policy.
Should my solicitor have taken any steps to expedite the completion process with the buyer's previous solicitors, and if so, what are my rights if they failed to do so?
In conveyancing, your solicitor should take reasonable steps to expedite the process, especially if delays are attributable to the buyer’s solicitors. This includes regular communication and possibly escalating matters if progress stalls. Failure to do so could be seen as a breach of their professional duty to act in your best interests. If you believe your solicitor didn’t act diligently, you may have a case for professional negligence. You can address this by initially discussing your concerns with your solicitor and, if unresolved, consider lodging a complaint.
What are my options for disputing the additional charges imposed by my solicitor due to the buyer changing their solicitors?
You may dispute the charges by reviewing your agreement with your solicitor to clarify if additional charges for an abortive sale and subsequent sale are justified. Check if the terms outlined fees for such circumstances. If they acted outside the agreement, you could raise this with the firm directly. Request an itemised bill to scrutinise the work claimed. If dissatisfied, consider a formal complaint through the firm’s internal procedure, followed by the relevant ombudsman or regulatory body for further investigation if unresolved.
How can I assess whether the fees charged by my solicitor for the initial and subsequent sales are reasonable and in line with industry standards?
To assess whether the fees charged by your solicitor are reasonable, refer to the initial agreement, which should outline the fee structure and any provisions for changes in circumstances such as an abortive sale. Compare the fees with industry standards by reviewing local conveyancing fee scales or averages. It may also be helpful to obtain a second opinion from another conveyancer. Analyze whether the solicitor's fees reflect the work actually completed in your case.
Are there any regulatory bodies or ombudsmen I can approach to mediate or investigate this legal fees dispute with my solicitor?
In your situation, you can approach the relevant ombudsman to investigate the dispute over legal fees with your solicitor. They handle complaints about service issues, including those related to fees and delays in conveyancing processes. Before approaching them, ensure you have given your solicitor a chance to address your concerns directly. If unresolved, you can then escalate it to the ombudsman.
