Referral Fees Are a 'Hidden Tax' on Homebuyers

Referral fees are a 'hidden tax' on homebuyers

Referral fees have been described as a “hidden tax” on homebuying that must be banned. The Conveyancing Task Force insisted that referral fees must end – despite them having provided a healthy additional form of income for many estate agents. The task force is the latest group to call for an end to their existence, saying the fees have operated as an “unseen surcharge’ on homebuyers. The Law Society has also demanded an end to referral fees. It …

'Hidden tax' referral fees should be banned, says conveyancing action group

Referral fees are a hidden tax on home buying and should be banned, according to the Conveyancing Task Force, a group of practising conveyancers, law firms and representatives from regional law societies. In a position statement issued this week, the CTF said it recognises “the reality that referral fees are entrenched across the conveyancing market,” and acknowledges that an immediate ban, “however desirable in principle,” could destabilise ser…