Purchasing, selling, or transferring property from one party to another involves many complicated processes and laws. To decipher these processes and ensure a secure and timely property transfer, it is beneficial to use the services of an experienced and professional conveyancer.
Conveyancers are qualified professionals who specialise in all aspects of the property transfer process. In addition to ownership transfers, a conveyancer prepares and lodges the documents required to complete a property transaction, including the contract of sale and transfer of land. The conveyancing fee also covers stamp duty, liaising with banks and other financiers and adjusting rates and taxes in preparation to oversee the final settlement of the property.
Conveyancing involves the preparation, execution, and lodgement of various legal documents to enable a quick and legitimate sale. Typically, there are three phases. These include the preparation of the sale contract, the exchange of contracts and completion. Conveyancing also branches out into finance, building and construction, administration, and investigative research.
Notably, a conveyancer conducts vital investigations, which can reveal new information about a property and reduce the risk for the buyer. The investigations present information from construction to the history of ownership, providing an overall picture of the property’s value, and uncovering any existing debts, conditions and legal issues attached to the asset. For example, a conveyancer will navigate local councils, and research the property’s construction, planning restrictions, zoning regulations or anything that may impact the property’s value. The conveyancer will communicate status updates with their client and with the opposite party or their conveyancer during the process. They will also negotiate on behalf of their client if required, verify the other party’s information, and organise any outsourced activities, which fall under disbursement costs.
Sellers and buyers may acquire conveyancing services from licensed conveyancers or solicitors. A conveyancer has a deep understanding of the legal processes and documents involved in property transactions and deals solely with property transfers daily, which may not be the case for a lot of solicitors. While property sellers and buyers are not legally obliged to transfer property using a conveyancer’s advice and guidance, it is highly recommended due to the complicated nature of property law and transactions. Conveyancer fees are therefore a necessary and small price to pay for the accurate and secure transfer of titles and funds.
Breaking It Down: What Is Included In Conveyancing Fees?
There are several legal, financial and construction factors involved with property transactions, dealings, and the settlement process. Therefore, we will break it down into three stages:
- Investigating and obtaining information on the property, including the legal ownership and titles, the property’s condition, its history, and finances.
- Documentation preparation, including the creation of a sales contract (from both parties), preparing any legal or governmental documentation (e.g. stamp duty), and preparing to deliver deposits or transfer title ownership.
- Examination and verification of information provided by the seller/buyer or representing conveyancer. For example, ensuring that the information provided is accurate, reading the terms of their contract, and verifying the transfer process at the time of settlement.
To further break down a conveyancer’s tasks and get a better idea of the conveyancing fees you are paying, here are some specific services:
- The creation and examination of all contracts
- Searches for property and land titles
- Investigating whether local councils or governments have restrictions or plans for the property or land
- Legal searches on the finances associated with the property
- Pest and building inspections
- Stamp duty processes
- Assessing a valuation that accurately reflects the property’s value
- Obtaining certificates for the property (e.g. water usage, electricity meter readings etc.)
How Much Are Conveyancing Fees?
With more than 30 years of extensive industry experience, Right Choice Conveyancing offers qualified and licensed senior conveyancers for Melbourne and Victorian-based settlements. Our senior conveyancers can guide and support sellers and buyers throughout the settlement process, ensuring nothing is missed. The conveyancing fee on a property depends on its unique condition and circumstances. An expert conveyancer can provide an accurate assessment of the processes and the conveyancer fees involved for a particular property, helping sellers and buyers understand the amount or range they will be looking to pay.
When engaging with a conveyancing service, the conveyancer must disclose the conveyancing fees to their client upfront. If the conveyancer can’t provide upfront costs due to the conveyancing case being unusual or having specific requirements, they must detail how they calculate their fees. They also need to provide clients with invoices and state how and when they will be issued. Conveyancing fees in Melbourne and Victoria as a whole, range from $800 to $2,200, depending on the property’s value, type of property and if the seller or buyer opts for a conveyancer or a solicitor.
At Right Choice Conveyancing, we charge $1200-$1400 for a typical file/property with standard disbursements. In addition to this, the conveyancer may incur additional disbursement costs as they research the property and the relevant legal requirements. You can contact us to get a more specific quote for your situation. Disbursement costs in Victoria are usually under $400 dollars. Disbursements refer to any costs incurred by the conveyancer while settling a property. These are charged on top of the conveyancing fee and may include searches regarding the property title, planning, rates, taxes as well as land and building certificates, settlement fees and other administrative costs.
Conveyancing in Victoria generally involves six parties: the seller, buyer, their respective conveyancers, and their respective banks. If the buyer and seller each use a conveyancer to represent them in the sale of property, then the conveyancers will deal with all parties in the interests of their respective clients. The conveyancers receive the same fixed amount of compensation as the conveyancing fee, acting on behalf of the buyer or the purchaser.
Please note that each state has its own fees and laws around property transfer. In Melbourne/ Victoria, conveyancing services may vary from individual property sales and purchases to more complex property development transactions.
Selling, purchasing, investing, or developing a property can be an overwhelming and complicated experience. That is why the experienced team at Right Choice Conveyancing can provide the necessary knowledge and information while acting on your behalf to ensure a transparent and seamless settlement. Contact us today to learn more or engage in our services, we look forward to hearing from you!