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Selling a house with “no hidden fees”: where the costs can still sit

If you need to sell your house fast, the advert may say “no fees”. A fee claim tells you what a firm charges you. It says nothing about the price you receive. Here is where a cost can still sit behind each claim, and what The Property Ombudsman (TPO) requires its members to put in writing first.

What a fee claim describes

When you are selling a property quickly, “no fees” and “no sale, no fee” each describe a charge made to you. In a quick house sale the cost can also sit in the price, in the cost of leaving an agreement and in what a company receives from a nominated solicitor. None of those show up as a fee line.

The code sets a point in time for the paperwork. A buying company must give you its Terms of Business, with its fees and charges, in writing before you are committed or have any liability to it. If you have not seen them yet, ask for them before anything else.

Claims about speed are separate. A line such as “cash offer within 24 hours” describes how fast an offer arrives. The code says a company must give proposed timescales in writing with its offer and must not give false or unrealistic ones. No official source gives a typical time from cash offer to completion. GOV.UK’s consultation gives 120 days as the average for a house sale to complete across the property market.

A label such as “guaranteed sale” has its own guide: what a guaranteed house sale means.

The claim decoder

Each row takes a phrase you may read on a website or in an offer, shows where a cost can still sit, and gives what the code or guidance says you must be given. Clause numbers refer to the TPO code for the route named.

What you read Where a cost can still sit What you must be given in writing
“No fees” or “free cash offer” Buying company The discount to market value. A fee for ending the sale. The cost of leaving an option agreement. Every fee and extra cost, including VAT, in the Terms of Business alongside the written offer (clauses 6a, 4g). A clear statement that the sale will be at a discount to open market value (3e).
“No hidden fees” Buying company Charges you first see after you have committed, or an offer that is cut later. The Terms of Business, with fees and charges, in writing before you are committed or have any liability (4e). No late price reduction without a valid reason explained in writing (4i).
“Genuine cash offer” Buying company An offer that depends on mortgage finance or on conditions. A company must not claim to be a cash buyer if it is using mortgage finance (3h), and must not mislead about whether the offer is subject to conditions or a mortgage valuation (4f).
“Cash offer within 24 hours” Buying company The speed of the offer says nothing about the cost or the time to completion. Proposed timescales in writing with the offer (4e). A company must not give false or unrealistic timescales (3g).
“No sale, no fee” Estate agent A commission owed if you end the instruction and another agent’s sale goes to a buyer the first agent introduced. A written explanation that you may owe commission for 6 months after the instruction ends, or 2 years if no other agent is involved (5t). Any termination fee must state its amount and its purpose, and must not be a penalty (5q).
A percentage fee Estate agent The percentage applies to the final selling price, which can differ from the asking price. The fee quoted inclusive of VAT, with an example based on the asking price, and a statement that it rises or falls with the selling price (5k).
A fixed fee Estate agent Extras that are not part of the fixed amount. The actual amount, including VAT, in the contract, with a statement that it will not vary with the sale price (5l). All additional costs in the Terms of Business (5j).
“Use our solicitor” Buying company A choice of solicitor limited by the company. You are free to use your own advisers (5d). If the company nominates the solicitor it must say why your choice is limited, that either party can withdraw without penalty at that stage, and any financial benefit it receives.
“No obligation”, “no tie-in” Buying company An option or tie-in agreement that restricts selling to someone else later. How long it lasts, what it costs if you pull out, any notice placed at HM Land Registry, and the effect on selling to a different buyer later (6c).
“No upfront fees” Auction Seller’s fees, administration charges and, at a modern method auction, a split of fees between the agent and the auction provider. TPO tells sellers to check auction house fees in advance and, for a modern method auction, to confirm the fee split. It says the reservation fee is usually kept by the auction provider.

How a quick cash sale works

A cash sale to a property buying company has fewer stages than a traditional sale through an agent, because the company is the house buyer and nothing is marketed. The TPO code sets out the sale process for its members:

  • Before you are committed, the company explains the valuation, the offer and the purchase process (3e).
  • It gives you the offer in writing, with proposed timescales and its Terms of Business, including fees (4e, 4g).
  • It confirms any change to the offer in writing promptly (4h), and does not reduce the price late without a valid reason explained in writing (4i).
  • You are free to use your own advisers. A nominated solicitor must come with the reasons and any financial benefit to the company (5d).

How much a house buyer offers varies with the property, and no official source gives a figure. Ask for the valuation behind it, and read what moves a cash offer for the factors that change the number.

Costs that apply on any route

No claim removes the costs that come with the sale itself. GOV.UK lists estate agent fees, legal fees and removal costs among the costs to budget for in a property sale, including when you sell your home. If you sell your property to a buying company you may pay no agent fee, but the legal work and your move still have a price.

What to ask for in writing

Value your property before you read any offer. GOV.UK’s guide says a valuation is not a guarantee of sale price, so treat a company’s figure as one number. Each item below comes from a clause in the TPO codes. If a firm will not put one in writing, that tells you something before you have signed.

  1. The Terms of Business, showing every fee and extra cost, with VAT included.
  2. The offer and the proposed timescales, in writing.
  3. How the valuation was reached, and the size of the discount to market value.
  4. What it costs if the sale is ended, as an amount or a method of calculation.
  5. Whether there is an option or tie-in agreement, how long it lasts and what it costs to leave.
  6. Who the solicitor is, why, and what the company receives from that arrangement.
  7. Which redress scheme the firm belongs to.

The questions to ask a cash house buyer go further.

Choosing a company and what protects you

Start by asking which redress scheme the firm belongs to, then check the answer. A TPO member must tell you in writing at the point of offer that it is a member (4a). TPO’s register shows businesses found by trading name, and says expelled businesses have been removed from the scheme. NAPB lists its house buying members on its members page.

If a complaint is not settled by the company, the code says its final view must explain how to refer the matter to the Ombudsman, and that a referral must be made within 12 months of that final view (7f).

Questions

What fees should I expect from a quick sale company?

No official source gives typical amounts. TPO’s code requires a member to list all fees and additional costs, including VAT, in the Terms of Business alongside the written offer. A fee for ending the sale must state its amount or how it is worked out, and any option agreement must say what it costs to leave.

Can a cash buyer really charge a seller no fees?

A company can describe its service as fee-free. Whatever it charges, a TPO member must list all fees and additional costs in the Terms of Business and must say the sale will be at a discount to market value. A sale with no fee line can still cost you through the price.

How quickly will I get an offer, and how long does a sale take to complete?

No official source gives a typical time from cash offer to completion. TPO’s code says a company must give proposed timescales in writing with its offer and must not give false or unrealistic ones. GOV.UK’s consultation gives 120 days as the average for a house sale to complete across the property market.

How much does a house buyer offer?

It varies with the property, and no official source gives a figure. The code requires the company to explain its valuation and say the offer is at a discount to market value. What moves a cash offer lists the factors.

Does an estate agent charge if my house does not sell?

GOV.UK says to ask. TPO’s code says commission becomes due on exchange of contracts, apart from any previously agreed additional costs. A termination fee can apply if the Terms of Business say so, and it must state the amount and purpose.

What is an option or tie-in agreement?

TPO’s code uses the term for an agreement that ties you to a company. It says the company must explain how long it lasts, what it costs if you pull out, any notice it places at HM Land Registry and how that affects selling to someone else later.

How do I choose a reputable company, and what protects me?

Ask which scheme the firm belongs to, then check it: TPO lets you search its register by trading name, and NAPB lists its house buying members. A TPO member must tell you in writing at the point of offer that it is a member. If a complaint is not settled, the code says the final view must explain how to refer it to the Ombudsman, within 12 months.

What if the firm is not a member of TPO?

The codes on this page are mandatory for TPO members. GOV.UK says estate agents belong to either TPO or the Property Redress Scheme, so ask which one the firm uses and ask for its terms in writing before you commit.

Which costs apply on every route?

GOV.UK lists estate agent fees, legal fees and removal costs among the costs to budget for. The cost of selling worksheet lists what GOV.UK names and adds up two routes from your own quotes.

Is this financial or legal advice?

No. It is a summary of public guidance, published by Loud Crowd IT Ltd, which does not buy property, sell homes or give advice. A solicitor or conveyancer can advise on your own sale.

Sources and when we checked them

Every figure and rule on this page comes from the sources below, read on . The date next to each source is the “last updated” date the publisher shows. Rules and thresholds change, so check the source before you rely on a detail.

Read before you accept any fast offer

Enquiries through this site are not open yet. The guides explain how cash buyers, auctions and quick-sale agents compare, and the checks that protect you.

Read the guides