Conveyancing costs can be overwhelming, especially if you are not familiar with the legal processes and regulations involved in property transactions. In this article, we will provide you with a comprehensive guide to conveyancing costs in Melbourne, Victoria, covering all the expenses related to buying or selling property.
The Cost of Selling a Property
If you are planning to sell your property, there are various costs that you need to prepare for. First, you will need to pay for any home staging or pre-sale repairs to make your property more presentable to potential buyers. You will also have to pay for marketing costs related to advertising, photography, and signage.
If you choose to sell your property through a real estate agent, you will also have to pay for agent 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. 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 a Property
Buying a property also comes with inherent costs. First, you will need to pay for conducting searches on the 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.
In addition to property searches, you will also have to 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, 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 penalize 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.
Other hidden costs that you need to prepare for include the cost of reconnecting or transferring services such as electricity, internet, and phone. You will also have to pay for insurance once you 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 customize.
In transacting the sale, both the buyer and the seller will need to get their own conveyancer. 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 Mr Conveyancer, 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 a 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, provide legal advice, and be there to help you even when things go wrong or not as planned and there is a dispute.
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.
In conclusion, conveyancing costs in Melbourne Victoria can be a bit overwhelming, especially for first-time buyers and sellers. However, by engaging the services of experienced and qualified solicitors at Mr Conveyancer, you can rest assured that the conveyancing process will be easy and convenient for you at a minimal cost. Don’t hesitate to contact us for any enquiries about conveyancing costs in Melbourne, and let us help you make informed decisions about buying or selling property.