The fee the client pays has the agents' fee deducted, the panel managers cut for “administration” taken and in some arrangements, the lawyer receives only £200 of a £700 fee. This requires the lawyers to carry an increased caseload and high caseloads have a direct impact on service levels.
However, there is good news on the horizon for better conveyancers. The threat of referral fees being outlawed in their entirety and the competitive pressures of the online-only agents bringing each transaction into sharp relief seems to be focusing attention to what really matters – completions.
Many agents are changing their focus towards better completion rates and good working relationships, rather than just referral fees.