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An engrossment fee is a charge for preparing the final version of a legal document so it is ready to be signed. It should be included in the list of conveyancing fees required.
An example of this type of fee would be acquiring the lease when purchasing a flat or leasehold house. It is also common when the seller is a developer or housebuilding company and the property is being sold for the first time.
The average cost of an engrossment fee is £98-£192 based on Konnect You research.
The developer’s or freeholder’s conveyancer will prepare and supply the legal documentation for signature. This then results in an extra charge for the buyer. Therefore an engrossment fee is not a part of the sellers cost of selling a house.
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When purchasing a new-build home, you will essentially be paying the developer for handling the legal paperwork. This is why the price of the engrossment fee can vary depending on the developer you’re working with.
If you choose the conveyancer your mortgage lender or estate agent recommended the chances of an added engrossment fee increases. Before choosing a conveyancer, you should read their terms and agreements and ask as many questions as possible. Enquire about their prices and ask if they will be including an engrossment fee and why.
Some of the documents used in the conveyancing process will require the creation of a draft transfer or Lease. This draft will be sent to the conveyancer representing the other party involved in the transaction.
It will then be checked and rechecked multiple times with both conveyancers potentially making a number of amendments. Eventually, the wording will be agreed upon and the draft will be finalised. This then means the document will be ‘engrossed’ ready for signature.
In the past, this involved a substantial amount of typing, editing and paperwork. Due to these added expenses, solicitors would include an engrossment fee.
Some people believe that an engrossment fee is no longer justified as everything is now completed electronically and takes much less time. Whilst engrossment fees do still occur, they are not a legal requirement.
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You can object to paying the engrossment fee but you may not be successful in removing it. It's often made a condition of the sale contract and so you will have to object before the exchange of contracts. If you sign and exchange the contract with the engrossment fee included, you will have to pay it.
This is also true when hiring a conveyancer. You should be made aware of any engrossment fees before choosing a conveyancer and before signing any contracts. If you find an engrossment fee within their Terms and Conditions, ask further questions before objecting.
Whether you're purchasing a leasehold or freehold property, you'll always encounter conveyancing fees, even if they don't include an engrossment fee. While solicitor fees when selling a house tend to be cheaper than buying a house, it is good to know what costs are involved. Fixed-fee conveyancing can help you understand the legal cost upfront, but you should still check what is included and what may cost extra.
Don't forget to shop around and compare quotes to keep your conveyancing costs down. Make sure you work with a verified and experienced solicitor to ensure the legal work is completed accurately and to the correct standards, saving you money in the long run.
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