Many readers have asked what ‘conveyancing’ is in property transactions, so we have done this quick summary to explain what it is…
Conveyancing is the legal and administrative process of transferring property ownership from a seller to a buyer. It ensures that the property is legally transferred, that there are no hidden debts or restrictions, and that all state property laws are met.
Key Stages of Conveyancing for Buyers
- Before Signing the Contract: The licensed conveyancer or solicitor reviews the ‘Contract of Sale’, explains the terms and risks, and checks for any unfavourable clauses.
- After Contract Exchange: They perform essential ‘property searches’ (such as title checks, council rates, zoning, and encumbrances) and coordinate with your mortgage lender.
- Leading Up to Settlement: They prepare legal documents, calculate final adjustments for council rates and water bills, and liaise with the seller’s representative.
- Settlement Day: The remaining funds are paid, the mortgage is registered, and official ownership transfers to you.
Who Handles Conveyancing?
- Licensed Conveyancer: A specialist licensed in property law who usually charges a fixed fee for standard residential purchases.
- Solicitor or Property Lawyer: A qualified lawyer who can also handle complex legal issues, tax implications, or disputes.
What are typical conveyancing & disbursements costs?
Conveyancing costs are split into Professional fees (what you pay your conveyancer or solicitor for their work) and dispersants (out of pocket costs paid to third parties and Government agencies on your behalf)
Professional Conveyancing Fees
- Fixed vs. Hourly Rates: Most residential conveyancers charge an agreed fixed fee (typically ranging from $1,000 to $3,300+ GST depending on the state and level of support), while some solicitors charge by the hour for complex transactions.
- Scope of Work: Covers contract review, drafting or negotiating terms, liaising with banks and the other side’s legal representative, and managing settlement.
Common Disbursements
- Title Searches: Verifies property ownership, plan of subdivision, and checks for registered easements, restrictions, or covenants.
- Local Council & Zoning Searches: Includes local government rate certificates and planning or zoning certificates (such as a Section 10.7 certificate in NSW).
- Water & Sewerage Searches: Confirms outstanding water rates and connection or meter details.
- Land Tax Clearance Searches: Checks if there are any outstanding land tax liabilities attached to the property.
- Strata or Community Title Searches: Required for apartment, townhouse, or unit purchases to review owners corporation records, strata levies, and bylaws.
- Electronic Settlement Fees (PEXA): Costs for using the digital workspace to complete the property transfer and financial settlement (usually around $140–$150).
- Land Registry & Registration Fees: Fees charged by state government land authorities to register the transfer of title and any new mortgage.
Separate Additional Costs (Not Typically Disbursements)
- Transfer Duty (Stamp Duty): A state government tax calculated based on the property’s purchase price or value.
- Building and Pest Inspections: Independent pre-purchase property condition reports.
- Lender’s Mortgage Insurance (LMI): Charged by your lender if your deposit is less than 20% of the property value.
The team at Sennza Media have had great experiences with Sydney based Commercial Conveyancing Pty Ltd who are specialists at commercial conveyancing across Australia. If you have need for a commercial conveyancing specialist we have no hesitation in recommending them to you. You can learn more about them by visiting their website here: https://commercialconveyancing.net.au
