When it comes to any part of financial services advice, while cost is not the be all and end all of any recommendation, it is certainly a factor and, as a minimum, you would certainly want the cost you outline to be accurate with no hint of any hidden surprises for yourself or the client further down the road.
However, when it comes to conveyancing advice/quotes/costing, there is not the level playing field you/we would want in this area, which has the capacity to leave everyone frustrated, and in some cases, out of pocket.
So, as a starter for ten, what should advisers be looking out for when it comes to providing conveyancing advice to their clients?
For a start, if you’re looking for uniformity in the way that conveyancing quotes are presented, then you’re unlikely to find it. Different panel managers and conveyancers themselves present their quotes in different ways, formats, and sometimes with different names for individual charges. Deciphering is not an art in itself, but it’s certainly going to pay for advisers to understand what is, and crucially, what isn’t, included in the quote.
Some players in the market do not always include every charge/fee/service in the ‘Total’ line of their upfront quote, and it’s only at a later stage when the true extent of the full costs are revealed, which is going to be higher than the original quote offered.
Can we call these ‘hidden fees’? Well, if they are known at outset and the panel manager is not including these in the quote then yes we can. However, when it comes to paying, the client’s finger is likely to be pointed at the adviser, and the conveyancer, as to why the full extent of the cost wasn’t outlined upfront.
That is likely to mean significant trouble for the adviser in two ways. Firstly, the adviser may have to sacrifice some of their referral fees in order to cover these unanticipated costs, and secondly, what are the chances that the client returns to you in the future, if they feel they have been misled? Very slim, I would say.
And yet, it can’t be said to be the adviser’s fault – it’s the panel manager’s. But, when it’s you providing the advice, you’re going to be the one in the firing line.
Even on products deemed ‘fixed price remortgages’ we see competitors not including all of the known fees and charges in the ‘fixed price’, for example, ID checks as high as £24 each, excess Land Registry fees of up to £35, onboarding and using the client portal at £42. By the way, clients being charged for using an online portal is beyond the pale in my view, given that it actually helps the conveyancer onboard the client with a reduced administration burden. Again, it’s not great to charge for this, but it’s even worse not to even include it in the quote.
Overall, these extra costs mean what is being advertised as say a £245 fixed price remortgage, could actually cost as much as £340, which in my view, should be made crystal clear from outset.
It's why we have called our equivalent product an ‘all inclusive remortgage’ because it includes all known fees - with free client portal access, not just those fees the panel manager feels will secure the business upfront when they know the client is going to ultimately be paying much more.
Other areas to be mindful of as advisers when viewing quotes, is the errors that can occur within poorly monitored quotation systems. Often, for example, the VAT amount will be understated – the majority of costs and fees are VAT-able. Even standard disbursements such as lawyer verification – the checking of the seller’s conveyancer’s bank account – or fees for mandatory ‘source of funds’ checks are regularly missing with one panel manager.
Shoddy or misleading? Well either way there’s really no excuse for this. Again, the very least you should expect as the adviser putting forward the quote to the client is that they are correct.
It’s therefore important for advisers who offer conveyancing advice and who earn referral fees, to understand what fees should be included, and to look at what your current preferred panel manager might be doing. Do they include everything in the quote? If not, why not? And if not, then think about making a move away from them because it will be you who is in the eye of the client-facing storm when the true costs come to light.
Once any trust or confidence is lost in you by the client, it is very difficult to get it back. Instead, be certain of the quotes you are generating, that they include everything upfront, and that they are not likely to be hit by anything hidden further down the line. Use panel managers like conveybuddy that approach this in the right way, and not only will you have a less stressed client, you’ll have a stronger income stream with greater certainty for all.
