“How much is conveyancing?” It’s one of the most common questions prospective home buyers or sellers ask. It’s understandable, as buying and selling property can be one of the largest financial decisions you will have to make. If you’re new to the property market, the finances required and the legalities involved can seem overwhelming and complex – but that doesn’t mean it is out of reach.
Conveyancing helps to take the hassle out of the process, removing the stress of paperwork, documentation and legal details. A conveyancer will handle everything like contracts, title documents, and negotiations, and be able to answer any questions along the way.
If you’ve found your perfect home and are hoping to secure it, it’s important to engage a conveyancer to ensure the process goes as smoothly as possible. You’ll find that you’re in safe, and most importantly capable, hands during the process. However, it’s a good idea to familiarise yourself with some of the terminology so that you can stay on top of the processes and formalities.
Common conveyancing terms explained:
Exchange – You’ll hear “exchange” used when the legal contract to buy or sell property comes into existence. At the time of the exchange, a deposit of 5% or 10% of the purchase price is usually paid and held by a stakeholder (usually the seller’s real estate agent or conveyancer) until completion of the contract.
Completion / Settlement – These terms are used to describe the completion of the transaction, when the balance of the purchase price is paid and the property title is transferred to the buyer.
Property – The term property is used a lot, but it’s important to be aware that it doesn’t just indicate buildings. It can also refer to any kind of asset, including land (also called real estate) and goods (also called chattels), as well as non-physical rights such as intellectual property and confidential information.
Person – This means any type of legal entity. It could be an individual (i.e. human being), company, strata body corporate or statutory corporation (like local councils).
Now, let’s take a closer look at the question on everyone’s minds – “how much is conveyancing?”.
A breakdown of the costs involved in conveyancing
There aren’t any set fees for conveyancing services, they can vary from state to state and conveyancer to conveyancer. The conveyancing fees you will be charged are negotiated with your chosen conveyancer and you should always obtain an estimate in writing of the fees and disbursements involved from them.
That being said, there are a number of costs involved in conveyancing that you can identify in advance. A typical transaction when buying property for example will incur costs from obtaining the required legal documentation.
The following costs are estimates for a typical transaction when buying a home in Sydney, so be aware that they may or may not apply to your particular situation. This is to give you an idea of some of the predictable costs and should be used as a guide only.
Common conveyancing disbursements:
Disbursements are the charges you can expect from the expenses incurred by your conveyancer for the cost of such things as:
- Title Search, approximately between $20 – $100
- Local Council Building Certificate, approximately $250
- Land Tax, clearance certificate, approximately between $20 – $25
- Local Council S149 Certificate, approximately between $53 – $133
- Drainage Diagram, approximately $25
- Sydney Water, rates certificate, approximately between $20 – $25
- Local Council, rates certificate, approximately $65
- Environmental Protection Authority, approximately between $20 – $25
- Department of Education, approximately between $20 – $25
- Roads & Traffic Authority, approximately between $20 – $25
- Transgrid, electricity/power stations, approximately between $20 – $30
- Local Council Pool Compliance/Non-Compliance Certificate, approximately between $150 – $450
- Necessary postage, stationery, faxes, approximately between $20 – $40
- Other costs may apply, depending on the transaction
Please note: The costs above are approximate for Sydney only and may vary from councils and departments.
On top of this, you can expect to pay fees for the necessary inspections and reports required as part of your due diligence as a buyer. These are likely to include:
- Building inspection fees
- Pest inspection fees
- Strata inspection fees
- Swimming pool and/or spa compliance inspection fees
- Survey report fees
Again, this is just a general guide and it’s important to remember that there may be other expenses involved depending on your individual case. Your conveyancer will be able to assess your particular needs and give you a more accurate costing. You will then be able to calculate the budget for your needs and requirements.
As you can see, there are a number of different costs involved, as well as certificates to obtain and inspections to organise. Managing these items yourself can seem like a daunting prospect. This is why it’s advised to engage a conveyancer – not only do they act on your behalf throughout the buying process, but they can also clearly lay out the costs and fees involved so you’re not hit with any unwelcome surprises.
We hope this article has helped answer the questions you may have around “how much is conveyancing?”. If you would like to receive a quote from us or are looking for a highly experienced conveyancer in Sydney, get in touch with us today by calling (02) 8256 4788.