Are there any costs or fees associated with selling to cash buyers?

There is no universal fee for selling to a cash buyer. Some buyers purchase without charging the seller a separate buying fee, while others may deduct agreed costs from the offer or expect the seller to pay particular expenses. The important figure is the net amount you will receive after every deduction, rather than the headline offer alone.

Costs that may arise include:

• Conveyancing: A solicitor or licensed conveyancer normally handles the contract, title checks, property information forms, redemption of secured borrowing and transfer of ownership. Ask whether the quoted legal fee includes VAT, searches, bank transfer charges and dealing with additional title work.
• Mortgage or secured-loan redemption: Your lender will provide a settlement figure. This may include the outstanding balance, daily interest and an early repayment charge if your mortgage terms provide for one. Any secured loan or second charge also needs to be settled from the sale proceeds.
• Leasehold charges: Leasehold homes can involve management-pack fees, notice fees, certificate fees, deed-of-covenant charges, arrears or an account-balancing payment. The lease and the managing agent’s requirements determine which costs apply. Outstanding ground rent and service charges usually need to be resolved before completion.
• Title and legal complications: Restrictions on the title, missing documents, boundary disputes, rights of way, planning issues or probate requirements can create extra legal work. These costs should be identified early and agreed with your conveyancer.
• Property-related work: A buyer may request an inspection, valuation or specialist report. Establish in writing whether the buyer pays for this or whether it will be deducted from the agreed price. Do not assume that a cash purchase removes the need to disclose known defects or legal issues.
• Removal and clearance: Moving possessions, clearing furniture or dealing with unwanted items is separate from the legal sale. Confirm whether the property must be empty and in what condition at completion.

A cash buyer may not need a mortgage valuation or lender’s survey, but that does not automatically make the transaction cost-free. The buyer still needs to establish that the property can be transferred legally, and you remain responsible for costs connected with your ownership, borrowing and title unless a different arrangement is documented.

Check exactly what the offer includes. Ask for a written statement showing:

• the gross purchase price;
• every proposed deduction;
• any fee payable to the buyer, an intermediary or another third party;
• who pays for searches, inspections and legal work;
• how mortgage, leasehold or other secured liabilities will be dealt with; and
• the estimated net proceeds payable to you.

Be particularly cautious about an unexplained upfront payment or a charge described vaguely as an administration, registration or processing fee. Before paying anything, ask what service the charge covers, whether it is refundable, who receives it and whether it will still be payable if the sale does not complete. A reputable conveyancer should also review the contract and explain any clause that allows the price to be reduced after an inspection or title investigation.

Tax depends on the seller’s circumstances and the property. Selling your main home may qualify for relief from Capital Gains Tax, whereas a second home, investment property or inherited property can require separate consideration. Income tax, Capital Gains Tax and inheritance-related matters are not determined simply by the buyer paying in cash, so obtain advice from a qualified tax professional where relevant. The buyer’s purchase taxes are generally a separate issue from the seller’s costs.

Before accepting an offer, compare the net proceeds and contractual obligations rather than comparing headline prices. Have your own solicitor or conveyancer check whether the proposed deductions are enforceable, whether the completion arrangements are clear and whether you are being asked to accept liability for a cost that would normally belong to the buyer. This makes the true cost of the sale clear before you commit.