In this blog, we will look at how providing OneSearch Pledge can enhance your reputation as a conveyancer and provide considerable peace of mind to your clients that their search costs will not be lost if their transaction does not proceed.
Nearly one in three residential property transactions fell through in 2024 (an estimated 296,204 transactions), with each one estimated to cost the home buyer an average of £3,456; that equates to losses of over £1bn. The wider economic losses due to fall through are estimated at £8.6 billion. The UK’s high property fall-through rate is not just a statistic; it represents a significant risk to your clients’ finances and your firm’s reputation and efficiency.
Consider that for each residential property fall-through:
While the estimates of costs vary, it is clear that the hundreds of thousands of property fall-throughs have an enormous impact on the wider economy, property transaction stakeholders, and potential buyers.
For a fee of approximately £15 per transaction, your clients can be reassured that should their matter fall through, they will receive up to £300 to cover their search costs. Given that the average cost of searches is around £400, this will return most of their search-related costs.
Offering a solution like OneSearch Pledge can really create a point of difference for your conveyancing practice, i.e., that you care. Many purchasers want to know that if their matter falls through for reasons outside of their control, they will not be financially out of pocket as a result. Not only does providing the assurance of Pledge show that you are committed to client care, but there will be a corresponding reduction in complaints and disputes arising from aborted transaction costs. Depending on your business model, you may choose to pass on the fee for Pledge or absorb this within your own costs in the knowledge that it may encourage more clients to choose your lower-risk offering.
As far as the client is concerned, they simply need to tick the option to be covered by Pledge. There is no application form, detailed paperwork, or investment of their time. In the event that they need to claim against their Pledge warranty, all they need to do is inform their conveyancer, who will advise Onesearch. If the claim is approved, the amount is paid to the client within 15 working days.
The exceptionally high level of fall-throughs in 2024/25 means that the risk of losing search fees is significant. While some customers will feel that they can absorb the cost of lost search fees if their matter falls through, many will not because they cannot afford to lose hundreds of pounds due to factors outside their control. By providing the peace of mind that Pledge provides, your conveyancing firm can demonstrate its commitment to customer care and respect for the precious financial resources of clients. We have made Pledge as simple as possible for all stakeholders – one small fee, no paperwork, and an easy claim process.
How can I help my client understand the value of Pledge?
Many home buyers may take the view that the risk of their purchase falling through is negligible. It is important to explain that the rate of aborted transactions is much higher than people think (i.e. nearly one-third in 2024). Furthermore, there is no guarantee that any subsequent purchase transactions will go through the first time. As a result, the fees for aborted transactions may start to add up. The fee is extremely small in the grand scheme of the purchase, but having a pledge means that they won’t waste money that can be put towards searching for a future purchase.
Will Pledge reimburse the seller if the seller pulls out?
Any OneSearch fees will be reimbursed to the buyer if the seller pulls out of the transaction. Specifically, we will cover the search fees if the seller is not in a legal position to sell the property or they accept a higher offer from another buyer and the home buyer is not willing to increase their offer in response.
Will Pledge reimburse the buyer if the buyer pulls out?
Any OneSearch fees will be reimbursed to the buyer if they need to pull out of their purchase for a wide range of reasons, including:
For a full list of the criteria for reimbursement and situations not covered, please click here.
Is Pledge an insurance product?
No, Pledge is a warranty add-on offered when purchasing a bundle of searches OneSearch Direct only.
OneSearch is an expert partner to conveyancing professionals, offering innovative and practical solutions to navigate the complexities and risks of the UK property market. For more information on OneSearch Pledge and what it can do for your firm and clients, please complete the contact form at the bottom of the product page or contact our team directly by email: cs@onesearchdirect.co.uk or phone: 0800 052 0117
