Conveyancing or the process of obtaining, selling or transferring the legal ownership of a property from one person to another is guided by various laws and involves several processes. In most instances, the average person does not have the skills or the time to read and understand these laws, and follow the processes to guarantee a secure property transfer. It is therefore common to opt for a professional legal conveyancer to assist them along the way. A common question posed to conveyancers is how much does conveyancing cost? Who pays for what?
The payment process around property transactions can be overwhelming at first. There are inherent costs that are attached to each conveyancing process, depending on whether you are selling or buying. Buying or selling a property can be a long and arduous process, but it does not have to be. Some payments are made only by one party while other payments are made by both parties. For instance, first time buyers and sellers are often not aware that both sides have to pay for their own conveyancer.
The Cost of Selling
If you are selling a property, there are various costs that you need to consider and prepare for. Initial costs that you need to pay for before putting the property on the market may include any home staging or pre-sale repairs to make your property more presentable to the market. You will pay for marketing costs related to advertising, photography, and signage, among others. If you opt to sell your property through a real estate agent, you will also pay for agent’s commission. In cases of sales by auction, additional costs for auctioneer’s fee must be paid.
If you have a mortgage, you will need to pay fees to your bank to discharge your mortgage. A Once you sell, the mortgage will be paid off. In the event that the property is not your primary residence, you may also have to pay capital gains tax on any profit. Consider these costs before you sell your property, otherwise, you may be left with little cash out of the sale.
The Cost of Buying
Up to this point, it may seem the buyer has fewer costs to pay. However, there are also inherent costs in buying a property. First of them is the cost of conducting searches on property. Local authority searches are important to know if the property has access to correct drainage sewers or if there are property restrictions that could affect the property.
Getting an instant quote on a search may be difficult since each property is different. At mrconveyancer.com.au, it is our duty to assist our clients with searches. We first search for the right information related to the property before making a quote.
Aside from property searches, the buyer will also pay for stamp duty. Each state has set aside its specific stamp duty and it can vary depending on whether you’re a first home buyer, and also the type of property you are buying, where the property is, and also how much your contract is for.
Individuals purchasing homes for the first time get a discount while some states penalise foreign purchasers. For example, in Victoria if you are a first home owner you may be entitled to a complete stamp duty exemption if your property is valued at $600,000 or less, or a concession if it is valued between $600,001 and $750,000.
In some states, the rates for first time home buyers vary depending on whether you are buying a newly built property or an existing property. If you are wondering what the approximate stamp duty is that you’re going to have to pay, simply give us a call and we can help explain what you might be liable for, and any discounts that are currently available.
Other hidden costs that a buyer needs to prepare for includes the cost of reconnecting or transferring services such as electricity, internet and phone. The buyer also needs to pay for insurance once they take ownership of the property. There is also the cost of moving in and redesigning all those little areas in your new house that you may want to customise.
A seller and buyer will need to get their own conveyancer in transacting the sale. A conveyancer will help the seller in preparing legal documents such as the contract of sale and ensures any special conditions you require are included. They will represent you in dealings with the buyer, help negotiate the terms of the contract and be the liaison between you and the buyer’s solicitor.
For the buyer, a conveyancer ensures that the seller has the right to sell the property, conducts property searches, gives pre-purchase contract advice, reviews the contract of sale and seller’s property disclosure statement (Section 32 statement), and ensures all fees and documents are provided so you can be the legal owner of the property such as balance of purchase price, stamp duty, title registration fees, bank fees and conveyancing fees.
Aside from a conveyancer, there are other costs that are split between the buyer and the seller.
For example, council and utility rates up to the date of sale are paid for by the seller. After the sale takes place, the buyer becomes liable and pays for these rates. Since it is highly unlikely that the sale will occur on the first day of a new quarter, the conveyancing process partly involves splitting up the buyer’s and seller’s contributions. The same applies for owners corporation levies as well.
One of the obligations of a legal conveyancer is to work on the split costs and present to the buyer and seller the payments they are supposed to make. Here at mrconveyancer.com.au,
experienced and qualified solicitors will make the conveyancing process easy and convenient for you at minimal cost. Solicitors are ideal for property transactions because they have thorough understanding of the legal processes and relevant legislation such as the Sale of Land Act. A solicitor can also help you navigate your rights, can provide legal advice and be there to help you even when things go wrong or not as planned and there is a dispute. To find out more about why we recommend solicitors, read this blog post: Conveyancer vs Solicitor- Who should I hire?
Conveyancing Costs in Melbourne
Melbourne attracts a lot of property investors and is known as one of the world’s auction capitals. Earlier in the article, we mentioned how auctions are different from a private sale. Rules and laws governing property purchases through auction are different from those that govern private sale. In such cases, it is important to engage a solicitor or conveyancer who is knowledgeable in auction procedures.
In Melbourne, the conveyancing fee usually ranges from $800 to $2,200, depending on the type or value of the property, and whether you opt for a solicitor or conveyancer. In addition to conveyancing fees, there are disbursements that must be paid for conducting property searches and complying with other legal requirements. Hence, it is recommended that you ask your conveyancer to get an accurate idea of the costs involved and for you to understand what these costs are for. The quote that will be given to you must specify the disbursements cost range to avoid unpleasant surprises.
Why Mr Conveyancer
Here at mrconveyancer.com.au, a licensed conveyancing law practice, who have a good reputation for experience and reliability, will assist you in all your conveyancing needs from pre-purchasing stage to final settlement. For more information, please contact us and get a free quote.
Mr Conveyancer is here to offer a complete solution to meet your needs. We have a ‘can do’ attitude and understand that timely and professional attention to detail is required for the best property transaction outcome. We will help you save time and money.
Click here to contact us today and explore our quality service and legal conveyancing solutions. Your property deserves the assistance, quality and skill that we offer.