How Much Does a Conveyancer Cost?

When buying or selling a home, conveyancers are licensed professionals who handle the legal transactions to transfer property ownership and ensure compliance with state regulations. Conveyancer fees typically range between $700 and $2,000+. These fees generally cover the reviewing and preparing of contracts, conducting property searches and managing the final electronic settlement. Conveyancing fees can differ depending on the location and property type, complexity of the transaction and any additional services.

What is Conveyancing?

Conveyancing is the legal process of transferring the legal title of a property from one person to another. The person it is ‘conveyed’ to is the new owner of the property. In a property transaction, the conveyancer is the legal representative that facilitates the transfer of ownership, manages the preparation, verification and registration of all required documents to ensure a smooth settlement.

What do Conveyancers do?

Conveyancers help guide the buyer or seller of a property through the entire property transaction process from the pre-contract to post-settlement. They make sure that everything goes to plan and complies with legal requirements. A conveyancer should be involved as early as possible when buying or selling a property. They are employed to work on behalf of both the vendors and purchasers of a property. The different duties of a conveyancer for buyers and sellers are:

Duties for the Vendor (Seller)

• Contract preparation: Conveyancers prepare the Section 32 and Vendor’s Statement for those selling a property. The conveyancer collates information from the seller like details of the title, mortgages, outgoings, any recent building works, permits or relevant building defects.
• Mortgage discharge: They will liaise with the seller’s lender to arrange for the discharge of the existing mortgage.
• Manage negotiations: They handle the communication between the buyer’s team regarding any contract conditions, extensions or amendments.
• Oversee settlement: The vendor’s conveyancer ensures the bank discharges the mortgage, adjusts rates and confirms that full payment is received.
• Post settlement duties: After the settlement is complete, the conveyancer will formally close the transaction and ensure that the vendor is no longer legally responsible for the property.

Duties for the Buyer (Purchaser)

• Contract review: The conveyancer will review the Section 32 and contract of sale before it is signed. They conduct title searches to check for any covenants, easements or other issues like zoning and planning regulations. If there is anything unusual the conveyancer will provide guidance to the potential purchaser on what to do next.
• Handling funds and adjustments: On behalf of the purchaser, the conveyancer will handle the funds and adjustments. They will put the deposit money in a trust account for them, and calculate the adjustments of rates and taxes.
• Communication with other parties: The conveyancer liaises with the vendor’s conveyancer and lender and prepares transfer documents for the buyer.
• Manage contract milestones: The conveyancer manages all the milestones along the way during the property sale period. These include due dates for deposits, building and pest inspections and financial approval.
• Oversee settlement: Conveyancers manage the final settlement where documents are exchanged, payments are made and ensure all legal and contractual conditions are met. On settlement day, the conveyancer ensures the funds are transferred to the vendor, registers ownership and confirms the keys are released.
• Post settlement duties: Finally, the conveyancer will notify the council and water authority of the change of ownership. They will provide the buyer with final documentation showing the property is in their name.

Cost for Conveyancing

The cost for conveyancing is the amount of money paid to the conveyancer to ensure the property being bought or sold is transferred between the two parties correctly and legally. Conveyancing costs are split into different categories including professional, disbursement, additional and final adjustment fees.

• Professional fees: The professional fees fall under the category of costs the conveyancer charges for their time and service. These fees cover the services like drafting contracts, legal advice and managing the settlement. The professional fees can vary from one conveyancer to another and depend on the complexity of the transaction and the level of service provided. Professional fees, without additional fees like disbursement, are usually fixed fees that often range from $700 to $2,000 plus.
• Disbursement fees: These are the third party fees that are out of pocket expenses necessary for the conveyancer to complete the conveyancing service. They include fees for searches, certificates and settlement rates. Approximate disbursement fees include:
  • Title search: $50
  • Council rates certificates: $100 – $300
  • Land tax clearance certificate: $30 – $100
  • Water authority certificate: $50 – $120
• Additional fees: Some conveyancers may charge additional fees that are not included in their general fees. This may include complex transactions, contract changes, courier fees, or electronic settlement fees. These fees may include:
  • Caveat preparation and lodgement: $77 – $500 plus
  • Attending a manual/paper settlement: $300
  • Removal of caveat: $300
  • Nomination fee: $350 plus
  • Foreign investment review board application: $1,600 plus

Cost for Conveyancing in Different States

Conveyancing fees can be different in every state due to the property market, local regulations and government fees. Each state has their own legal requirements that tend to influence the cost. The approximate average cost of conveyancing fees (excluding disbursement or additional fees) in Australian states and territories is:

Factors that Impact Conveyancing Cost

Several factors impact how much conveyancing might cost. List and explain how eg.

• Complexity of the work: How complex the work is directly impacts how much a conveyancer may charge as more complicated transactions require more time, expertise and research. Property transactions involving multiple owners, leasehold issues, company titles or deceased estates require more complex legal research. A simple conveyancing case is straightforward like a standard house sale with a clear title. More complex cases such as off-the-plan or subdivision requires further in-depth contract review and careful navigation through legal issues.
• Value of the property: The value of the property can have an impact on how much a conveyancer costs because high value properties often require more complex legal work. Due to the more complicated workload required, some conveyancers may charge more for higher priced properties. Higher value properties have the potential for further title problems and often have more intricate legal and financial issues that require more due diligence and legal expertise. Expensive properties involve higher stakes and greater financial risk which means more due diligence for conveyancers to protect the investment. High end contracts are not standard and often involve clauses and conditions with specific risks and terms that require more time and expertise to finalise.
• Conveyancer’s experience: More experienced conveyancers can charge higher fees than those starting out. They are better equipped to handle unique or complex transactions like new builds, leasehold properties or shared ownership. They can potentially offer more detailed advice and a higher level of service, better protect your interests and handle unexpected issues should they arise.
• Location: The location of the property has a significant impact on how much a conveyancer may charge. Different states and territories have different government fees for property searches and registration which can impact final cost. Each state and territory has its own legal requirements for conveyancing, which can lead to different required tasks and fees.
• Disbursements and out of pocket expenses: Apart from the conveyancer’s professional fees there can be some disbursements and out of pocket expenses. These third party costs can include things like title searches, bank fees and land registration fees.

Tips for Budgeting and Choosing a Conveyancer

When buying or selling a property, it is important to choose the right conveyancer. Tips to budgeting and choosing the right conveyancer include.

• Have a budget: Understand how much a conveyancer might charge and include that in your budget when buying or selling a property. Be aware of the price range and how much that can alter depending on the circumstances.
• Ask for inclusions: Make sure you know what is included in the quote and understand the potential disbursements and additional costs. Speak to the conveyancer about potential extra costs so you can factor them in.
• Ask for a fixed fee: Some conveyancers will offer a fixed fee quote which includes their professional fee, an estimate of disbursements and settlement costs.
• Check licenses and reviews: Check if they are licensed and experienced. Speak to people in the area who have used their services and ask professionals like a real estate agent about their reputation.

Conveyancers manage the legal process of transferring a property from one person to another. When buying or selling a property it is imperative to have legal representation and advice from a conveyancer to ensure a successful transaction. Understanding how much a conveyancer costs is important to ensure a smooth and budget conscious property transaction. Fees can vary dramatically depending on the complexity of the transaction, the area and experience. For further information on choosing a conveyancer and how much it should cost, contact the team at Forme Homes.