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Conveyancing guide

Do you pay conveyancing solicitor fees if a house sale falls through in Scotland?

Do you pay conveyancing solicitor fees if a house sale falls through in Scotland?

Usually, yes, but not the full fee. If a house sale or purchase in Scotland falls through, you normally pay your solicitor for the work done up to that point, plus any outlays already spent on your behalf. Exactly what you owe depends on the terms of business you agreed when you instructed the firm.

This guide explains when a Scottish property deal becomes binding, which fees and outlays are usually still payable if it collapses before missives are concluded, what changes once missives are concluded, whether lender and estate agent fees come back to you, and how to keep the cost down.

Can a house sale in Scotland fall through after an offer is accepted?

Yes. In Scotland, an accepted offer is not a binding contract on its own. The seller's solicitor normally replies with a qualified acceptance, and the two solicitors exchange further letters, called missives, until every term is agreed.

Only when missives are concluded is there a binding contract. As mygov.scot puts it, once the missives are accepted and both sides agree on the terms, you have a binding contract.

Until that point, either side can walk away. The Law Society of Scotland's client guide to the Scottish Standard Clauses says the buyer and seller can withdraw from negotiations "without warning, reason or penalty" before missives are concluded. We explain this stage in more detail in our guide on whether an offer for a house in Scotland is legally binding.

Do you pay solicitor fees if the sale falls through before missives are concluded?

In most cases you pay for the work your solicitor has already done. By the time a deal collapses, they may have checked the title, raised enquiries, negotiated missives and dealt with your lender or the other side.

The Law Society of Scotland's rules on client communication require a solicitor to give you written information at the outset. This includes either an estimate of the total fee, including VAT and outlays, or the basis on which the fee will be charged. That letter, often called a letter of engagement or terms of business, is what decides your bill if the transaction stops.

Firms handle abortive transactions differently. Some charge a proportion of the agreed fee depending on how far the work has gone, some charge for time spent, and some reduce or waive the fee in certain circumstances. Read the terms before you instruct, and ask directly what you will pay if the transaction does not go ahead.

Which costs are usually still payable?

Outlays are payments your solicitor makes to third parties on your behalf. Once they have been spent, they cannot usually be recovered, whoever pulled out.

CostUsually paid byRefundable if the deal falls through?
Solicitor's fee for work doneBuyer and seller (each pays their own)Depends on your terms of business
Searches (legal and plans reports, property enquiry certificate)SellerNo, once ordered
Home ReportSellerNo, but it can often be used again if you keep marketing the property
Mortgage valuation feeBuyer (some lenders cover it)Rarely, once the valuation has been carried out
Lender arrangement or product feeBuyerDepends on the lender and when the fee is charged
Independent survey commissioned by the buyerBuyerNo
Estate agent's feeSellerDepends on the agency agreement

For sellers, searches commonly cost in the region of £200. The Home Report is a one-off cost that does not disappear if the sale fails. If the property goes straight back on the market, the existing report can often still be used, although a later buyer's lender may want an updated valuation.

What happens if the sale falls through after missives are concluded?

Once missives are concluded, pulling out is a breach of contract. The party at fault can be liable for the other side's losses, and these can be far larger than any legal fee.

Many residential sales use the Scottish Standard Clauses (Edition 6). Under clause 13, if a buyer fails to pay the price on the due date:

  • The seller can claim either ordinary damages or interest on the unpaid price at the "Prescribed Rate", which is 4% above the Royal Bank of Scotland base rate.
  • If the price is still unpaid more than 14 days after the due date, the seller can rescind (cancel) the missives.
  • After rescinding, the seller can claim either ordinary damages for all proper and reasonable losses, or liquidated damages calculated as interest on the unpaid price at the Prescribed Rate. Interest runs until the earlier of 12 months after the due date or the date of entry under a resale.

The losses a seller can claim include "Wasted Expenditure", which the clauses define as:

  • any shortfall between the agreed price and a lower resale price
  • estate agency, marketing and advertising costs of the resale
  • legal expenses of the resale
  • costs of cancelling, storing or moving furniture
  • bridging loan costs for a purchase the seller must still complete

The protection works the other way too. Under clause 12, if the seller fails to give entry, a buyer who is ready to settle can claim damages for reasonable loss, and can rescind on notice if the breach lasts 14 days after the date of entry. Your own missives may vary these terms, so your solicitor will explain what applies to your deal.

Are mortgage and estate agent fees refundable?

For buyers, a lender's valuation fee is rarely returned once the valuer has visited. Arrangement and product fees vary: some lenders take them up front and keep them, while others add them to the loan and only charge them if the mortgage completes. Your mortgage illustration and offer will set out which applies.

Some lenders allow an application to be moved to a different property, which may save part of the cost. Ask your lender or broker before assuming the money is lost.

For sellers, many estate agents only charge their commission when a sale completes. However, some agreements include up-front marketing fees, withdrawal fees or a Home Report cost that becomes payable if you take the property off the market. Check your agency agreement for these terms.

What if your buyer pulls out?

Before missives are concluded, a seller usually has no claim against a buyer who withdraws. You will still pay your own solicitor and outlays, and you can put the property back on the market straight away.

After missives are concluded, the position is very different, as described above. We cover a seller's options step by step in our guide on what happens if a buyer pulls out of a house sale in Scotland.

How can you limit the cost if a sale falls through?

  • Read the terms of business first. Ask what is charged if the transaction does not proceed, and at what stage outlays are paid.
  • Compare fees properly. Look at the fee, VAT and outlays together, not just the headline figure.
  • Buyers: check the Home Report and your finances before offering. A mortgage agreement in principle and a careful read of the survey reduce the chance of a late collapse.
  • Sellers: have your paperwork ready. Title deeds, planning and building warrant documents and factor details help missives move quickly.
  • Aim to conclude missives promptly. The shorter the gap between an accepted offer and a binding contract, the less time there is for either side to change their mind.
  • Do not commit too early. Avoid booking removals, ending a tenancy or paying for non-urgent work until missives are concluded.

Getting advice before you buy or sell

A clear fee quote and a solicitor who moves missives along quickly are the best protection against wasted costs. You can see how our fixed fees and outlays are set out on our conveyancing fees page, or get a figure for your own move with our quote calculator.

If you are selling, our residential sale service explains how we handle your sale from Home Report to settlement, including what happens if a buyer withdraws.

Kirsty Docherty

Kirsty Docherty, Head of Residential Conveyancing

Kirsty leads our residential conveyancing team and has over a decade of experience in residential property law in Scotland. Last updated 2 November 2026. This guide is general information about Scots law, not legal advice for your situation.

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