Conveyancing is the process by which one can buy or a sell any type of property in the UK. It is a legal and a mandatory process and different types of properties require different types of paper work. There are also different types of fees involved in conveyancing and the fee varies. Usually, conveyancing for residential properties is much easier compared to conveyancing for commercial properties. Of the different types of cost involved, one such cost is the engrossment fee. The engrossment fee must be made when handling for a property.
What is an engrossment fee
It is the fee that is charged by your conveyancing solicitor or solicitor or whichever you name it. They charge this fee as they make a legalised and genuine copy of the legal documents that is required in your property dealing. In fact, this fee is usually charge when the parties involving the buyer and the seller of the property come to an agreement of purchase or sale.
Conveyancing is about legal handling and processing of documents. Whenever the conveyancing transaction comes to a point where it requires the handling of legal documents that needs to be prepared and processed, then your solicitor will create a draft transaction paper. This draft is sent to the solicitor of the other party. Considering, that you are buying a property and the other party is selling. Therefore, this draft will be sent to the seller’s solicitor. This document will be checked and rechecked for amendments and there might be times where the selling party’s solicitor will suggest edits. Therefore, this will require this document to be sent forwards and backwards multiple times. Afterwards, a wording will be agreed and the draft will be finalised.
When a draft is finalised, your solicitor or the first solicitor will have the legal copy or the fair copy of the legal document draft written incorporating all the amendments and agreements and then it will be signed by both the buyer and seller.
Today, times have changed and this has affected and changed the conveyancing process too. Drafts are now prepared electronically in a computer and producing a final copy for signature by the two parties requires only adding the edits and then printing.
To pay the engrossment fee or not
This has been a massive change and improvement if compared with the past because in the past it was done on paper and by hand. Therefore, many conveyancing solicitors charged extra money for this. Nowadays, documents are not prepared on such special types of paper. Digitalisation has grasped all over and the land registry office of the neighbourhood in which you are buying your property will scan all documents and keep an electronic record. Engrossment fees, therefore, are less common nowadays and may be a very little sum of money even if you need to pay it.
The scene is like that you might still be required to pay the engrossment fee when conveyancing for a property. The fee is usually present for a flat or a leasehold property. It must also be mentioned that leasehold properties conveyancing fee is higher compared to normal residential conveyancing fee. Your solicitor will charge you a bit more. More experienced solicitors are more aptly prepared to do the conveyancing and can make sure that the process goes as smoothly as possible in the least of time.
Conveyancing solicitor usually prepares two engrossment fee copies when the property is a leasehold property. This is because one copy requires the signature by the seller or the person who is granting the lease. The other copy is signed by the buyer. It is quite still that engrossment fee is need to be paid and it is more common if you go to a conveyancing solicitor who has been recommended by your estate agent.
Conveyancing solicitors that you research and select give you the option to see if they charge any extra fee beyond their conveyancing fees. On the other hand, fixed fee conveyancing is one such option that you can choose because it does not involve sudden or extra legal costs. All costs are within the package. For best conveyancing services in the UK for residential properties, check out Nigel Broadhead Mynard Conveyancing Solicitors who can give you details if you need to pay the engrossment fee or not.