Whether you’re buying a new property or ready to sell, you’ll more than likely need to employ a conveyancer to help you satisfy all the legal requirements needed in order to transfer ownership from one person to another.
If you’ve ever wondered what a conveyancer does, and more importantly, how much they cost, you’re in luck as this article will go through the most commonly asked questions when it comes to conveyancing.
Conveyancing is essentially a legal process that ensures all required documents involved in the transfer of property ownership from one owner to another is prepared and organised.
The conveyance of a property is undertaken by both parties including those who are selling and those who are buying. The general conveyancing process typically follows 3 steps:
- Pre-contract
- Pre-completion
- Post-completion
If at any stage during this process any appropriate paperwork is incorrectly completed or not handed in by the required dates, your contract may be voided.
To put it simply, a conveyancer is a licensed professional who oversees and manages the transaction of the sale of a property while ensuring it complies with the legal regulations of your state or territory.
Their responsibilities can include (but do not exclude):
- Sourcing the certificate of title (land ownership history)
- Preparing a contract of sale and transfer of land document
- When buying, the conveyancer will check the vendor’s statement
- Liaising with government and local councils e.g. future land developments, notifying them of the purchase/sale
- Organising inspections e.g. pest inspections
- Paying a deposit, stamp duty and other property ownership transfer costs
- Conducting vital searches that can reveal information about the property
- Arranging settlement on the buyer’s behalf
Essentially, a conveyancer ensures that the transaction runs as smoothly as possible.
Conveyancing costs can vary greatly depending on the particulars of your sale, and whether or not the conveyancer works in a solicitor’s office, small business, or is self-employed.
As an estimate, you can expect to pay between $500 to $2,500 in conveyancing fees. However, you also need to allocate separate funds for additional disbursement costs.
According to the Australian Institute of Conveyancers NSW Division (AICNSW), disbursement costs can include:
- Title search: $20 - $100
- Local council building certificate: $250
- Local council S149 certificate: $53 - $133
- Local council, rates certificate: $65
- Land tax, clearance certificate: $20-$25
- Sydney water, rates certificate: $20 - $25
- Drainage diagram: $25
- Department of Education: $20 - $25
- Environmental Protection Authority: $20 - $25
- Roads and Traffic Authority: $20 - $25
- Transgrid, electricity/power stations: 20 - $30
- Postage, stationery, faxes: $20 - $40
- Local council pool compliance/ non-compliance certificate: $150 - $450
Note that these costs are approximate and NSW based only. If you require conveyancing in another state or territory, these figures may differ.
Before hiring a conveyancer, make sure to ask them for a detailed quote that outlines all the expected inclusions and fees that may be charged to you.
Buying a property is a huge deal in itself, so employing an expert like a conveyancer to take care of all the legal documents is a great way to relieve yourself of some added stress.
They have a trained eye that is more likely to spot any inconsistencies that need attention.
Of course, there is the option of doing it yourself with a conveyancing kit that costs between $80-$150. Although you can save a lot of money this way, it’s worth remembering that the whole process can be complicated and time consuming. Not adhering to your states law or missing cut off dates for submitting in relevant documents can have serious consequences, such as losing your deposit.
Plus, unlike conveyancers who have professional indemnity insurance, you are not covered by insurance if something goes wrong.
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