Are there any fees involved when selling to cash house buying companies?

Yes, fees can arise when selling to a cash house buying company, although the seller may not be charged every cost personally. Some buyers cover selected transaction expenses, while others reflect those costs in the offer or deduct them from the completion proceeds. The important comparison is the net amount you will receive, not simply the headline offer.

Common costs to check include:

• Conveyancing fees: You will usually need a solicitor or licensed conveyancer to handle the legal transfer. Confirm whether the buyer is paying this cost, contributing towards it or expecting you to pay it.
• Mortgage redemption: If the property has a mortgage, the outstanding balance must normally be repaid from the sale proceeds. Ask your lender for a redemption statement, including any early repayment charge, exit fee or other amount required to close the account.
• Property-related arrears: Council tax, service charges, ground rent, rent owed to a landlord, and other sums secured against the property may need to be settled. For leasehold property, check whether the managing agent charges for a resale pack, information pack or certificate of compliance.
• Valuation, survey or administration charges: Some arrangements include separate fees for assessing the property, preparing documents or administering the purchase. Establish whether these are payable even if the sale does not complete.
• Referral or intermediary fees: If an introducer, broker or other intermediary is involved, ask who pays them and whether their fee is taken from your proceeds. This should be disclosed clearly before you commit.
• Insurance and legal protection: Unusual title issues, missing documents, boundary questions or alterations without the relevant consent can require additional legal work or indemnity insurance. Determine whether the cost is yours, the buyer’s or shared.

Stamp Duty Land Tax is generally a cost for the purchaser rather than the seller in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax, while Wales uses Land Transaction Tax. The treatment can depend on the transaction and the parties involved, so do not assume that a charge described as tax, duty or a transaction cost is automatically payable by the buyer.

Income tax or Capital Gains Tax may also be relevant in some circumstances, particularly where the property is not your only or main residence, is held as an investment, or is being sold by an estate or business. This is separate from a fee charged by the buying company. A solicitor or tax adviser can explain the position based on your ownership and use of the property.

Before accepting an offer, request a written statement showing:

• the agreed purchase price;
• each fee or deduction and whether VAT applies;
• which costs are paid directly by the buyer;
• any charges that become payable if the sale falls through;
• the mortgage, secured debt or arrears deductions; and
• the estimated amount due to you on completion.

Read the sale agreement carefully for clauses allowing the price to change after a survey, title investigation or valuation. Also check whether the agreement gives the buyer an exclusive period, permits assignment to another purchaser, or imposes a cancellation or withdrawal charge. These provisions can affect the real cost even where the initial quotation says that there are no seller fees.

A genuine no-fee arrangement should still be assessed against the total offer and the contract terms. A buyer may pay your conveyancing bill but make a lower offer, or quote a strong price and then list deductions later. Comparing the written net proceeds with alternatives, such as an estate-agent sale or an auction route, helps identify whether the structure is financially suitable for your circumstances.

Do not rely solely on verbal assurances. Ask your own conveyancer to explain every deduction before signing, particularly if you are dealing with mortgage arrears, probate, divorce, a leasehold property or title problems. If a fee is not clearly stated in the written paperwork, obtain clarification before proceeding rather than assuming it will be absorbed by the cash buyer.