The policy enables clients to obtain a precise quote before instructions are accepted, which is guaranteed irrespective of case complexity. The client can pay an up-front insurance premium, set at 8.5 per cent of total fees and expenses, and settle the balance on completion. If the sale falls through, the insured party incurs no further fees or disbursements even for expenses already incurred on their behalf.
Convex offers brokers £80 commission on a remortgage and £100 for a purchase but this can vary from white label to white label as these allow the brokerage to set its own pricing model. The firm said the policy will offer brokers an assured, fast and effective service.
Duncan Samuel, managing director of Convex, said: “Cash is always tight when buying or selling a property especially for those at the bottom of the property ladder. Unfortunately chain-breaking is common particularly in the current slow property market and people can lose a vast amount of money through solicitor’s fees and property searches.
“With the Convex offer of an insurance policy to cover the cost of fees and searches, people can protect themselves against paying for services that become redundant and pay simply the cost of the premium. At around £60, this is much less than average fees and disbursements and we therefore expect this option to be hugely popular with our clients.”
But Barbara Stratford, managing director of Stratford Properties, said £60 was too expensive. “The commissions are standard but the insurance premium may be a bit of a hurdle for some clients. If it was around £20 to £25 more people would think about it but £60 is pricey.”
