Island Life Magazine Ltd December 2013/January 2014 | Page 110

TERENCE WILLEY

coffee
break
advice.

Terence Willey & Co
Terence Willey t.01983 875859 Mark Willey t. 01983 875859 - w. terencewilley.co.uk

..

Terence Willey
Mark Willey

Referral fees or buying clients?

S

ome while ago I addressed the
subject of referral fees passing
between Estate Agents and
Solicitors and expressed my
concerns generally in this area.
The legal Professional and Statutory
Bodies have been undertaking an
investigation following concerns as to
possible breaches of the existing Codes of
Conduct.
They have now concluded and
directed that there must be much
more transparency and disclosure to
the consumer client at the point of
referral and that the full extent of costs
must be clearly set out in writing. The
recession has introduced much more of
this activity between Estate Agents and
Solicitors than I have ever experienced in
my long career.
In some cases it is considered a
commercial ‘means to an end’ and in
others mere survival. I still uphold and
maintain the ‘old school principle’ that
all future business is gained through

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personal recommendations and that
you are always only as good as your next
transaction.
Good relations between Estate Agents
and Solicitors are important for so many
other reasons in terms of assisting one
another and co-operating during the
process of buying and selling property.
Genuine recommendations based
upon the quality of work coupled
with good service are of course highly
commendable.
In essence, under the new Codes of
Conduct all referral fees or commissions
payable must be properly disclosed to the
client at the point of introduction and
confirmation as to whether these will be
added to the fees payable by the client in
the transaction.
My Practice has always maintained the
principle of not entering into any referral
or commission fee arrangements as this
often leads to over-selling a professional
service. A client may be persuaded to
move away from a long established past

connection with a Practice who may have
acted for them and their family for very
many years past.
The client should therefore always
remain vigilant and wary of any referral
arrangements, and be absolutely clear of
the genuine reasons behind such referral
and the total cost involved in the same.
Sadly, I have seen evidence where the
total monies charged in a transaction
have been several hundreds of pounds
more in a referral fee situation than
where there is no such arrangement in
place.
It is therefore essential that you ask
for a full written estimate of all legal
fees, referral fees or commissions and
disbursements payable by you from your
chosen law firm or from the one to whom
you have been so referred. It is only then
that you will be able to compare estimates
accurately with others and ensure that
such referral is not at a premium.