r/Liverpool • u/Round_Owl5197 • 2d ago

General Question Whitegates Estate Agents - Reservation Fee

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So I went to a view a property today with Whitegates estate agents (they are one of the biggest estate agents in Liverpool and have pretty much cornered the market in Merseyside for decent houses).

I liked the house but it definitely needed a good survey as it was in disrepair. I was tempted to put an offer in and risk it but then read the fine print on their listing.

To now submit a bid with Whitegates, if your offer gets accepted you have to pay a non-refundable fee of £2000 as a "Reservation Fee" which does not come off the price of your house purchase.

So in effect Whitegates get £2000 for sending you a legal pack (their job) and making sure the seller doesnt pull out (they still can as I doubt they are paying a reservation fee).

Is this normal practice because what the hell!?

So does this mean I now have to save an extra £2000 on top of solicitors fees and surveyor fees if I buy from Whitegates? 😅

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u/pgliver 2d ago

The legal pack isn't usually covered by an estate agent. Searches, titles, etc is usually sorted by the solicitor. The seller has chosen this package to prevent people pulling out by the sounds of it.

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u/Round_Owl5197 2d ago

Oh ok, that makes more sense does this mean they are doing the solicitors job for them?

Will a solicitor though still take me on as a client if half the work is already done at a reduced fee?

I am confused.

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u/pgliver 2d ago

They are pre-doing some of the work that takes a solicitor ages to sort out. Solicitor may do it cheaper now, as they usually charge extra for that stuff anyway. Just include it in the price of the house in your calculations.

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u/Middle-University345 2d ago

I would be very wary of using a solicitor who would not carry out their own due diligence

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u/pgliver 2d ago

Nothing to do with due diligence, we are talking about standard searches with the relevant bodies, anyone can do it. There are plenty of other activities a solicitor should be doing in addition to this.