When you sell a property, it's very common for the estate agent to suggest a solicitor.

For most people, that feels like the easiest option. You're already dealing with them, they've helped get your property on the market, and it seems simpler to just go with what they recommend.

What most people don't realise is there's usually a reason behind that recommendation.

Why Estate Agents Recommend Specific Solicitors

In a lot of cases, estate agents have formal referral arrangements with certain solicitors.

If they refer you, they receive a referral fee. This typically starts somewhere around £150 to £300. According to research by Which?, some referral fees reach £400 or more, and there are cases where firms pay significantly higher amounts to secure agent partnerships.

That doesn't automatically mean the solicitor is bad. But it does mean there's a financial incentive behind the recommendation, and you should know about it before you decide.

What That Means for You

That referral fee has to come from somewhere.

In most cases it's built into the overall cost of the service. So instead of getting the most competitive quote, you may be paying more without realising it.

At the same time, a lot of sellers assume they need to go with the estate agent's choice to keep things moving. That isn't the case.

The estate agent is not part of the legal transaction. Their job is to market the property and agree the sale. The legal side is handled entirely by your solicitor. You are free to choose any firm you want, and it won't slow anything down.

Why Most People Don't Question It

Most people just don't check. They assume it's the standard process, that the recommendation is based purely on quality, or that it will make things simpler. So they go ahead without comparing. That's where people end up overpaying without ever realising it.

The Rules Around This

There are clear rules in place, and they exist for a reason.

Under the Consumer Protection from Unfair Trading Regulations 2008, estate agents must be transparent about any financial arrangements that could influence their recommendations. That includes referral fees.

The Solicitors Regulation Authority (SRA) also requires that solicitors who participate in referral arrangements act in your best interests and that any fee-sharing arrangements are disclosed to you clearly.

Additionally, the Property Ombudsman's Code of Practice states that agents must disclose referral fees in writing before you commit to using the referred service.

In short: they are legally required to tell you. If that hasn't happened clearly, ask directly before you sign anything.

You also cannot be pressured into using a particular solicitor or penalised for choosing your own. If that happens, it crosses the line.

Where It Starts to Become a Problem

The issue isn't that referral fees exist. The issue is that a lot of people don't fully understand what's happening.

Sometimes the recommendation is presented as the obvious choice. Sometimes the financial side isn't explained clearly. Over time, this creates a situation where people follow the suggestion without ever seeing what else is available.

What You Should Actually Do

The easiest way to avoid overpaying is to compare.

Look at a few quotes side by side. Check what's included. Make sure you're seeing the full cost, not just the headline number. When you do that, the difference in price becomes obvious pretty quickly.

Why We Built MoveGuide

This is exactly why we built MoveGuide.

Most people don't realise how much prices vary until they actually see multiple quotes in front of them. Instead of relying on one recommendation, you can compare properly and make a decision based on real numbers.

It takes less than a minute, and it can save you £300 or more.