Key Features Document for buyers, where the buyer pays the fee:
i) The buyer fee you agree to pay will become due on exchange of contracts but will be payable on completion of the sales transaction.
ii) Upon request by you this fee can be added to the net agreed purchase price and paid by the seller on completion of the sale
iii) Where Choices are Sole Agents you will pay 2% +VAT of the purchase price of the property, for example on a £200,000 property that would mean you will pay £4800 including VAT. Where Choices are not sole agents you will pay 3% plus VAT which in the above example would be £7200. It will say on our property particulars whether or not we are sole agents.
iv) You must be aware that HMRC have indicated that the commission fee will be considered as part of the ‘chargeable’ consideration for the property and may therefore be included in the calculation for any stamp duty liability which you will pay on transfer of the property to your ownership. For example under the new stamp duty reforms, if you purchase the property for £200,000 plus a buyers fee of 2% plus VAT = £4800, you will pay £1,596.00 in stamp duty* (*according to your circumstances).
v) Your solicitor/conveyancer will be advised of this arrangement through the memorandum of sale.
vi) All offers will be submitted verbally and in writing to the vendor unless we are instructed not to do so in the case that an offer is below a pre agreed limit.
vii) We are acting for the vendor in all cases and not as your agent.
viii) If for any reason you do not agree to pay our fee in line with our contract it will be paid by the seller and your refusal will not therefore affect the net cost or proceeds of the transaction