An ethical approach to fee discounts
Legal fees are regulated by tariff guidelines, which are issued by the Rules Board in terms of the Legal Practice Act. Although these tariffs are guidelines, they are typically followed in the conveyancing industry. As a result, if fees are ever queried, they can usually be backed up by the regulations issued in the Government Gazette from time to time.
In our current economic climate, it’s not uncommon for fee discount requests to appear as part of transfer and bond registration instructions. At Snymans, as in any other business, discount requests are considered on merit, and we take several factors into account, such as long-standing client relationships, multiple deals, and repeat business. Ultimately, these decisions will be considered by a director or the board of directors, depending on the size of the deal and the discount requested. For this purpose Snymans Inc has a discount policy which is used as a guideline during this decision-making process.
Competitive quotes and discounts
Occasionally, a prospective client will obtain quotes from more than one conveyancing firm and request that a competing quote be bettered by a discount. While it’s perfectly regular to provide quotes before being instructed, discounts should only be considered once instructed. To do otherwise would be unethical. Any considerations of discount on fees prior to instruction can only be on merit, and under no circumstances should a discount be offered based on a competitive quote or discounted quote as this may constitute touting.
The value of service excellence
At Snymans, our fees are consistent with the service we provide to our clients and are an accurate reflection of the input and effort we provide. We therefore carefully consider the merits of each discount request before making any decision.
Written by Wessel de Kock
Useful resources & expert property law advice
