Are there any hidden fees or unexpected costs involved in the cash sale process?

Cash sales are not automatically free of costs. The amount you receive may be reduced by agreed deductions, property-specific charges or costs arising from your mortgage, lease or legal circumstances. A legitimate proposal should make clear whether the quoted figure is the purchase price or the amount you will actually receive after deductions.

Costs that may arise include:

• Leasehold charges: leasehold properties can involve management-pack fees, notice fees, deed-of-covenant charges, service-charge balances, ground-rent arrears or other sums payable under the lease. Check which party is responsible for each item and whether any apportionment will be made at completion.
• Property certificates and compliance documents: an Energy Performance Certificate or other property-specific documentation may be needed, depending on the circumstances. Establish whether the buyer will arrange and pay for any required documents or expects you to do so.
• Outstanding property liabilities: unpaid service charges, council tax, utility balances, rent, insurance contributions or other charges connected with the property may affect the final settlement. These should be identified rather than deducted without explanation.
• Costs linked to a conditional offer: some proposals may be subject to inspection, title checks, valuation or further approval. If the offer can be changed after these checks, ask what findings could trigger a reduction and how that reduction would be calculated.
• Optional or third-party services: a buyer may suggest a solicitor, broker, surveyor, clearance firm or other provider. You should be told whether using that provider is optional, who pays the provider and whether any referral or administration charge is added to your costs.

Check the difference between the offer and your net proceeds. Ask for a written completion statement showing the agreed purchase price, every deduction and the balance payable to you. The statement should distinguish between costs paid to third parties and amounts retained by the buyer or an associated service. If VAT applies to a charge, it should be clear whether the quoted amount includes it.

Do not rely solely on a headline figure described as “cash in hand” or “no fees”. Review the written offer, sale agreement and solicitor’s paperwork together. Look for wording that permits new charges, changes to the price or deductions for unspecified work. A clause allowing costs to be introduced at a later stage deserves clarification before you commit.

Questions to ask before signing include:

• Is the stated figure the gross purchase price or the exact amount I should expect to receive?
• Can the offer be reduced after an inspection, title review or valuation?
• Are any administration, reservation, referral or cancellation charges payable by me?
• Which leasehold, property-management and outstanding-account charges will be settled from the proceeds?
• Who pays for any recommended professional or third-party service?
• What happens if the transaction does not complete, and could I become liable for costs?

Be particularly cautious if you are asked to pay an unexplained fee before the sale proceeds, transfer money to an individual rather than an identified firm, or sign documents containing blank spaces or unclear deductions. An upfront payment is not automatically improper, but its purpose, recipient, amount and refund position should be documented and independently checked.

Your conveyancer should explain the financial terms in the contract and confirm the completion figures before completion. If the paperwork differs from the original proposal, ask for the reason in writing and do not assume that a verbal assurance overrides the signed agreement. Keeping the offer, correspondence, invoices and completion statement together gives you a clear record of what was agreed and what was deducted.