What fees or costs are involved in a cash property sale?

A cash property sale does not automatically mean a cost-free sale. The total expense depends on the property, the agreed contract, how it is marketed and any issues found during the legal process. Some charges are predictable, while others arise only if the property has a leasehold, title defect, planning issue or unusual legal requirement.

Common costs to check include:

• Estate agency fees: If you instruct an estate agent before accepting a cash offer, check whether its commission is payable on completion, on introduction of a buyer or under another trigger. Review the agency agreement for the fee, VAT and any withdrawal or sole-agency provisions.
• Energy Performance Certificate: A valid EPC is generally required when marketing a property, subject to exemptions. If a new certificate is needed, the cost is normally arranged by the seller.
• Leasehold administration charges: Leasehold sales can involve fees for a management information pack, replies to standard enquiries, notice of transfer, notice of charge or registration of the buyer. The freeholder or managing agent sets these charges, so request a schedule early and check whether any are subject to VAT.
• Leasehold or estate arrears: Outstanding ground rent, service charges, estate charges or reserve-fund contributions may need to be cleared or apportioned at completion. Your completion statement should show how any agreed apportionment has been calculated.
• Title and property remedies: Missing documents, restrictive covenants, lack of building regulation approval, boundary disputes or alterations without the required consent can lead to extra searches, document retrieval, specialist advice or an indemnity policy. Whether the seller pays depends on the contract and negotiations.
• Property-related tax: Capital Gains Tax can be relevant where the property is not wholly covered by an applicable main-home exemption, such as with an investment property, second home or certain inherited properties. The calculation depends on personal circumstances, ownership history and allowable expenses, so tax advice may be appropriate.
• Probate or trust administration: A sale by an estate or trustees may involve additional documents, professional administration or court-related requirements. These are separate from the ordinary conveyancing work and should be identified before agreeing a completion date.

The buyer’s cash position does not usually remove the seller’s responsibility to prove ownership and deal with title, planning and property information. It may reduce the risk of a lender requiring additional conditions, but it does not remove the need for appropriate checks or documentation.

Ask for a written financial breakdown before committing. It should distinguish between:

• the agreed sale price;
• professional fees;
• third-party disbursements;
• property or management-company charges;
• VAT, where applicable;
• any deductions from the sale proceeds; and
• the estimated amount you will receive on completion.

Check whether each fee is fixed, estimated or conditional. A fixed fee should state what work it includes. An estimate should explain what could cause it to increase. Disbursements are payments to third parties and may change if extra documents, searches or policies are required.

It is also important to establish whether any charge is payable upfront. Be cautious about requests for unexplained administration fees, valuation fees or deposits, particularly where the payment is not clearly set out in the written terms. Confirm the identity of the recipient and obtain an itemised receipt for any payment.

Before exchange of contracts, compare the agreed price with the expected net proceeds rather than considering the headline offer alone. Ask the conveyancer to confirm the deductions in the completion statement and raise any unfamiliar item before signing. The final figure can change if an outstanding balance, leasehold charge or other adjustment is discovered, so keeping records of documents and payments helps identify discrepancies.

For a UK cash sale, the most reliable way to assess the true cost is to review the offer, the contract and the conveyancer’s completion statement together. This shows which expenses are yours, which are being met under the agreement and which may arise only if a specific issue affects the property.