NCA calls for greater price transparency by solicitors
- Very large differences in fees charged regionally and nationally, a difference of €3,250 found between the highest and lowest price quoted for a typical conveyance
- Significant difficulty in getting fee information from solicitors for routine services with only a 20% response rate
9 February 2012
The Chief Executive of the National Consumer Agency (NCA), Ann Fitzgerald, today called for greater price transparency from solicitors following the publication of a nationwide survey investigating the professional fees charged for three common services, namely a typical conveyancing transaction, making a will and taking out a grant of probate.
For its latest price survey, the NCA contacted 329 solicitors with a questionnaire containing details of the three straightforward scenarios. In return, relevant information was received from 65 solicitors, a response rate of just 20%, which is significantly less than previous studies conducted by the NCA.
Key findings of the survey included (all fees quoted excluded VAT and outlays):
- Only one solicitor, out of 65 indicated that prices are displayed at their premises. Of those solicitors with websites (36), none stated that fee information was displayed online
- The national average fee reported to the NCA in response to the information provided for a typical conveyancing scenario was €1,302, ranging from a low of €750 recorded in the Rest of Leinster area to a high of €4,000 in the Connacht/Ulster area, a difference of €3,250
- The average fee, across all regions, reported to the NCA for making a will was €119. The minimum price surveyed was €50 with the maximum fee recorded being €300. Two solicitors reported that they do not charge for this service
- In relation to taking out a grant of probate, the national average fee reported by the solicitors surveyed in response to the scenario was €2,767. The lowest price quoted €950, was recorded in the Munster region and the highest price €6,150, was recorded in the Rest of Leinster area, a difference of €5,200.
Commenting on the survey, Ann Fitzgerald said: "Our experience in conducting this survey highlights to us the difficulty for consumers in obtaining and comparing quotes for straightforward scenarios in relation to common services from solicitors and the enormous variation in fees charged for them.
"While noting that price is only one factor when choosing a solicitor, our advice to consumers requiring legal services is to make a list of their requirements and request quotes based on this list, via telephone or email, from a number of solicitors in their area. If the results of our survey are anything to go by, the benefits of doing so are likely to be considerable."
Consumers should note that additional costs, for example outlays, will apply in relation to a conveyance and grant of probate. VAT will also be applied on professional fees. When comparing quotes, consumers should ensure that all costs are included so that they can compare like with like, before proceeding to formally engage a solicitor. The NCA would also advise consumers to agree the total fee in advance, wherever possible.
Ms Fitzgerald continued "We note that proposed improvements in transparency are due via the Legal Services Regulatory Bill but these will only arise when a consumer issues an instruction to a solicitor.
"It is the NCA's view that more needs to be done in advance of this, to enable consumers to get a number of quotations and to make a decision, on the basis of full information, in relation to who they want to hire.
"As a result, we are calling on the legal profession to make it easier for consumers to access quote information for routine services, that is, for solicitors to provide detailed quotations in a standard format prior to engagement. Furthermore, it is the NCA's view that there should be a regulatory requirement for all legal professionals to publish fees for their basic or standard services. In the meantime, we can see no reason why solicitors cannot publish prices on their websites or at their premises.
"Today we have written to the Law Society and the Minister for Justice and Equality and we want to work with the appropriate bodies in order to secure more transparency for consumers."
Download a copy of the research report.
Notes
- The National Consumer Agency undertook a nationwide survey of solicitors in the period October to December 2011.
- Note that all fees reported above refer to professional fees and are exclusive of VAT and outlays.
- The Rest of Leinster area refers to all of Leinster excluding Dublin
- A letter containing details of the survey, including a questionnaire containing the three scenarios for which fees were sought (detailed below), was sent to each solicitor selected to participate and participants were requested to return the completed questionnaire by a means most convenient to them, post, email, fax or over the phone. NCA staff contacted each solicitor who had not returned a completed questionnaire on at least two occasions with a view to obtaining the information.
The scenarios on which fee information was sought were as follows:
Scenario 1: Conveyance
This scenario sought to establish the cost of a typical conveyancing transaction on a semi-detached, second hand house in a housing estate, where the title is registered with the land registry, for a single, first time purchaser. The purchaser would be the sole owner with a loan approval of 90% from a financial institution. The house would be the primary residence of the purchaser. A price of €220,000 had been agreed.
Scenario 2: Making a will
This scenario sought to establish the cost of making a will for a sole surviving spouse with straightforward financial and personal affairs.
The consumer in this instance has two adult children. The direction to the solicitor is for the entire estate is to be split equally between both adult children, both of whom are resident in the State and are in similar financial circumstances. There were no predeceased children.
The testator (person making the will) is widowed, aged 67, fully owns their home, has €20,000 in savings, has no life insurance/assurance policies and is in receipt of the State pension.
Scenario 3: Grant of probate
This scenario sought to establish the cost to obtain a grant of probate after the death of a sole surviving spouse, with straightforward personal and financial affairs.
The deceased was a widowed 67 year old, with two adult children (no predeceased children) both resident in the State. The house has no outstanding mortgage and has an approximate value of €220,000. The deceased had savings of €20,000, was in receipt of the State pension and held no life insurance/assurance policies; the estate is to be divided equally between the two siblings. The children have the will in their possession.
The title to the house is to vest in joint names to the beneficiaries of the will and both children are executors of the will.