Buying or selling property is an important financial transaction. Because it is such an involved process, most individuals will choose to hire professionals to assist them along the way. This includes some combination of real estate agents, conveyancers, solicitors, accountants, building inspectors, and financial planners. One area where it’s not wise to skimp is conveyancing, so you’ll want to work this cost into your budget.
(A good real estate agent will have professional connections to conveyancers and conveyancing solicitors, you can compare real estate agents upfront at LocalAgentFinder and get the expert advice to help you sell your property.)
A solicitor or conveyancer will charge you a combination of professional fees, along with disbursements. These include both settlement fees and the fees for searches that are performed on your property’s behalf. Yet there may also be other types of mandatory fees to be aware of, which are important to plan ahead for.
The purchaser or transferee is responsible for paying a stamp duty. This tax is levied on most property transfers by the appropriate State or Territory Revenue Office. The rate will depend on the territory or state the property is located in. This rate will also be influenced by the purchase price or property value. The buyer’s solicitor or conveyancer will be able to calculate how much stamp duty is owed, and can advise you regarding any potential concessions. If you hold a recognised concession card, you may be eligible for the concessional stamp duty as a result.
The purchaser is also responsible for paying a Transfer Fee to the relevant Land Office, depending on the territory or state the property is located in. The amount of this fee will also depend on the location, the property value, and the purchase price. However, the Transfer Fee is usually capped at a certain amount. If you have reached that amount of home value, you will pay the capped fee rate no matter what the property is actually worth. As with the Stamp Duty, the solicitor or conveyancer can give you advice regarding the transfer fee. However, there usually aren’t any concessions available in this case.
Both buyers and sellers can expect to contend with bank fees if they are working with a financial institution. For example, if you are buying a property and are taking out a mortgage to help fund this purchase, you can expect to pay application fees, settlement fees, and legal fees. You’ll want to read over the financial institution’s loan offer carefully before you sign any documents. These should clearly outline the fees that you will be held responsible for. Remember that there may be fees both upon signing the loan documents as well as throughout the lifespan of the loan.
Sellers will also need to work bank fees into their budget. You may be responsible for discharge fees, as a start. Sellers who are paying out the loan early will also need to potentially pay early exit fees. Be sure to find out all the details regarding what you are expected to pay, if you must pay off your loan earlier than you had been planning.
Because these various fees can be confusing to deal with on your own, you’ll want to hire a conveyancer or solicitor to help you navigate through them. This is particularly true if you are purchasing a property. Sellers will also want to work with a real estate agent to assist with the sales and marketing of the property. Be sure to work this into your budget and compare all of your options before making a decision. Most Australian real estate agencies have provided their information at LocalAgentFinder so that you can compare local agent fees and services in order to make an informed decision. Find out how it works and start the process of finding the right fit for your needs.