Whether you’re buying or selling a home; it’s important to be aware of all the fees that this process could incur so that you can budget for them. Hiring a conveyancer or solicitor to assist you with the conveyancing process will require some investment. A professional solicitor or conveyancer will not only charge professional fees, but the cost of disbursements as well. Disbursements refer to any costs incurred by the professional on your behalf.
(A good real estate agent will have professional connections to conveyancers and conveyancing solicitors. Compare real estate agents for free at LocalAgentFinder and get the expert advice you need to sell your property.)
In addition to the conveyancing fees, you will also need to pay for the services of a real estate agent to get the ball rolling on your sale or purchase. Agent commission and fees may vary, just as they would for conveyancing. Be sure to know what you’re getting into before you hire any real estate professional. To help you get started, you can compare agent fees and services at LocalAgentFinder. By comparing these, you’ll be able to find the right real estate agent for your needs, for free. At the same time, it’s helpful to shop around to find the right conveyancer or solicitor to help with the conveyancing process. As you compare your options, keep the following fees in mind.
The initial fees you pay for a conveyancer or solicitor will depend on the type of professional you choose to hire. In general, a conveyancer’s fees will be lower than a solicitor’s. These could range between $500 and $800. Yet some conveyancers will run special promotions, which might lead you to negotiate an all-inclusive fee. This could include the cost of both professional fees as well as disbursements. If you decide to hire a solicitor, you can expect to pay a bit more. The average fees for a solicitor range between $600 and $1000.
There are several types of costs that a professional solicitor or conveyancer may need to pay on your behalf. As mentioned above, these are called disbursements, and could include the following:
- Title searches
- Local Council Building Certificates
- Drainage Diagrams
- Planning searches
- Council building searches
- Council or water rate searches
- Roads and Land tax searches
- Heritage listed searches for certain types of properties
- Department of Education
- Roads & Traffic Authority
- Transgrid, Electricity/Power Stations
- EPA properties (depending on location)
- Settlement fees (if a CBD agent is used to attend the settlement)
- Other Costs
The cost of these disbursements will vary, and could depend on the number and extent of any searches which are undertaken. For the standard set of searches including council and water searches, roads searches, title searches, and land tax searches, it usually costs between $150 and $200, but certain council certificates could cost upwards of $200. This will vary depending on the council the property is located in. For EPA or heritage searches, you can expect to pay a bit more.
Another type of cost that this process incurs are settlement fees. These are usually between $30 and $80, depending on the agent that your solicitor or conveyancer uses. Most settlements take place in the CBD because banks tend to be involved, which means that a conveyancer or solicitor can attend the settlement if they are located within the CBD as well. However, if they are located in a suburban area, then an agent may need to be used. At times, a real estate agent can help you get in touch with a conveyancer or solicitor using professional connections. You can compare licensed agents in your area using the free comparison tool at LocalAgentFinder.
Statutory Charges Quo
There are additional charges to expect as part of the conveyancing process. When buying property, the purchaser must pay stamp duty and transfer fees. These will vary depending on the State or Territory you are purchasing property in. Be sure to check with the relevant Revenue Office and Title Office to receive a quote on what you will need to pay. If you are working with a professional solicitor or conveyancer, they will be able to calculate these charges on your behalf and notify you if there are any exemptions or concessions available. You can use stamp duty calculators on certain websites such as realestate.com.au for a rough estimate. Sellers do not need to worry about paying stamp duty or transfer fees. However, if you are selling property you may need to pay Capital Gains Tax. This is most likely if you are selling investment property, so it’s important to discuss this possibility with your accountant.
Further Conveyancing Costs
Conveyancing transactions may also involve additional costs like adjustments to be made for council and water rates. These adjustments are made against the buyer for any time that they are in the property. If the seller has already paid the council rates up to a certain time period but the buyer has moved in, then the buyer must reimburse the vendor for these fees. Adjustments are the legal way to go about this and are usually carried out by the buyer’s conveyancer or solicitor. The solicitor or conveyancer working on the seller’s behalf checks to ensure that these calculations are accurate. Further adjustments could include rent, licence fees, discharge of mortgage fees, and body corporate fees.
These fees make up the full package that you can expect to pay as part of conveyancing. You can add these to the fees that you must pay to work with a real estate agent as well, along with marketing costs if you are selling your home. Sellers will want to work with the most experienced professionals to ensure a smooth sale and conveyancing process. This starts by finding the right real estate agent. Compare real estate agent fees and services in your local area at LocalAgentFinder, for free. Find out how it works and find an agent in your area to maximise your profits as you sell your house.