The truth about Referral Fees
What is a Referral Fee?
- It is a commission paid by a Solicitor to a third party, usually an estate agent, for a recommendation.
How much are Referral Fees?
- They vary from £150 to £300 plus VAT
Why do Solicitors pay for referrals?
- Presumably they want more work.
How do Referral Fees affect clients?
The truth is that Referral Fees are bribes under another name.
if the fee payable to the Solicitor is being paid out to a substantial
degree to a third party, then the resources available to that Solicitor
to deal with the matter are reduced. This may mean that less
qualified staff have to be engaged to do the work for the Solicitors'
firm to make any profit.
- Firms with referral fee arrangements may be subject to estate agent pressure and may find their independence impugned.
- We have heard numerous stories of estate agents bullying purchasers and sellers into accepting their choice of solicitor or conveyancer.
- We do not believe that this is in the interests of clients.