How Much Does Conveyancing Cost?

If you want to buy, sell, or transfer property, you will need to hire a conveyancer (also known as a settlement agent) to perform the legal aspects of the transfer. Conveyancing is one of the necessary costs associated with buying a house. A transfer is not legally binding until the conveyancers of the buyer and seller exchange contracts and agree on the terms. Settlement agent fees can range anywhere between $500 to $1,800, depending on the amount of work involved and the value of the property. 

Conveyancing fees can differ based on several factors. One of them is the location in which the property is located. The following is an example of how average fees differ in Australia’s major cities. They will also depend on whether you are the buyer or seller of the property.

City	Average Reported Cost
Sydney	$700 – $1,800
Brisbane	$500 – $1,200
Melbourne	$600 – $1,200
Perth	$600 – $900
Adelaide	$500 – $800
Canberra	$900 – $1,000
Darwin	$1,000 – $1,200
Hobart	$500 -$800

 

Conveyancing fees can also differ a lot in each state due to state laws. Some states have maximums set on the fees that can be charged, while others do not. Also, in some states, the buyer and seller pay different rates. 

Conveyancing Fees NSW: fees in New South Wales generally range from $500 to $1,200. The costs depend primarily on the type of property. Residential properties are less expensive than multi-unit apartment buildings. 

Conveyancing Fees QLD: the average fees in Queensland range from $500 to $1,300. There can also be an additional disbursement fee of up to $300. 

Conveyancing Fees SA: in South Australia, conveyancing fees are different according to the type of purchase. When buying a residential home, fees are around $1,800, including a $300 disbursement fee. 

Conveyancing Fees VIC: here are no regulations as to the fees that can be charged in Victoria. The average is around $600 to $1,400. 

Conveyancing Fees WA: Western Australia has a maximum allowable fee for conveyancing. The average fee is approximately $1,700 for a $500,000 piece of property. 

Conveyancing Fees TAS: in Tasmania, professional fees average $770, but state fees can quickly add up to an additional $290 for the seller. If you are the purchaser, you can expect to pay professional fees of $940 with additional state fees of $520. 

Several factors affect the cost of conveyancing. Understanding them can help you determine if the price you are being quoted is fair for the type of transaction you intend to carry out. 

Location

Conveyancing prices differ according to where you live. One of the main determining factors is the average value of housing in the area where the property is located. Some conveyancers set their charges based on the sale price of the property, but others do not. Conveyancers might charge a certain percentage of the final sales price and then add on additional fees. Before hiring a conveyancer, be sure to ask how they charge. 

Purpose

The fee differs according to whether you are buying, selling, or transferring a property. Among these three choices, transferring property is the least expensive. This is especially the case if the transfer is between family members. As the conveyancer representing the seller, the conveyancer only needs to make certain the deal is fair and meets the regulations. There is less research involved when representing the seller. The conveyancer for the buyer will have the most amount of work involved. They will need to research the history of the property and anything that the seller will want to be aware of in the future. If you are buying, the conveyance fee will be the most expensive due to the amount of work involved. 

Type of Property

Conveyancing for a residential home is less expensive than for an apartment. An apartment must meet many regulations that a home for occupancy of the buyer will not. Conveyance fees for a multiple-family unit will be even more expensive, as this is considered a commercial transfer. 

Search Fees Conveyancing

Search fees are a large portion of the expense. When it comes to search fees, conveyancing for the buyer requires the most research. Searches include a title search, which can range from $20-$100. There is also research into land taxes, liens, right of way allowances, utilities, improvements, and other items that pertain to the property.

Disbursement Fee

Fixed price conveyancing fees often include conveyancing disbursement costs, but it is a good idea to check to be sure. Conveyancing disbursements are costs that the solicitor or conveyancer will pass on to you at the end of the transaction. These can include a bankruptcy search, local authority searches, land registry office copies, and other miscellaneous costs. These items seem small, but they can add up in the end. 

Conveyancer Experience and Reputation

Conveyancing prices vary greatly depending on the experience and reputation of the conveyancer. You want someone who is experienced and especially experienced in your geographic area. However, be prepared to pay for this expertise. In the long run, paying the extra for someone who will do the job right can save you in the future if any of the legalities are missed.

There are several different ways to price conveyancing. Here are the most common pricing models. 

Fixed professional legal fee

This type of pricing provides a number of listed services for a set price. Often these pricing systems can be the most cost-effective, but you need to read the fine print because they might not cover everything that you need. 

Standard search fees

This is the most common pricing system. Under this strategy, the conveyancer lists the searches they will provide for a set price. The advantage is that you only pay a set price, regardless of how long or complicated the search process turns out to be. The disadvantage is that you might have to pay extra for services beyond the searches. Make certain that you understand exactly what you are paying for before you sign. 

Additional costs

There are many additional costs that can come up during the process. Some of them can be anticipated by an experienced conveyancer, and others cannot. Some examples might include a local council building certificate, a drainage diagram, land tax clearance certificate, and office expenses. 

The buyer and seller of the same piece of property can incur different expenses for the same property transaction. For instance, the buyer of a property in Brisbane might pay between $1,000 to $1,500 in fees. Whereas the seller would only pay $450 to $600 for the transaction. The following explores the reasons for these differences in price for the same property transaction. 

Buying

Conveyancing fees for buying a house are more expensive than if you are selling a house. A good conveyancer can be an asset when negotiating a deal. They might find things that will make the price lower, and they can make certain that you are not greeted with unexpected surprises in your new home.

Selling

Conveyancing fees for selling a house are less expensive than for the buyer, in most cases. The conveyancer needs to verify the legality of selling the property, assure that it meets certain criteria for occupancy, or if it does not, make sure the seller will not be legally liable for them. 

Transferring

Transferring property is the easiest of the three scenarios. This is usually done between family members or spouses. Usually, both parties already know about the condition and situation. In many cases, transfers of this type are only a legal formality. 

A conveyancer does not have to be a licenced legal professional to handle the title. A solicitor is a licenced legal professional who may also be able to handle the title transfer, too. Anyone who is qualified can handle the title transfer, but you get additional legal representation from a solicitor, should something go wrong. 

You can expect to pay a higher price with a solicitor, but they will often more aggressively represent your interests in the deal. A conveyancer will not conduct any extra legal work. A solicitor will be able to provide additional information, such as tax advice or information on your particular circumstance. Which you decide to hire is up to you and depends on your needs.

The price of conveyancing depends on many different factors. It is difficult to make generalisations that will apply to every circumstance, but there are some things that you can do to help your professional do the job right and at the best possible price. 

How to Create an Accurate Estimate 

The first thing that you will want to know up front is how much you need to budget. There are a few things that you can do to help your professional make the most accurate conveyancing quotes.

Provide Adequate Information. Provide as much information as possible. This will save your conveyancer from having to do additional work. 

Keep No Secrets. If you know of a legal or other issue about your property, but upfront about it. It is easier to plan for a known problem than to get an unexpected surprise. 

Get Your Paperwork. Have your paperwork together in an orderly fashion. This will save time and allow your conveyancer to work more efficiently. 

 

Licencing and Qualifications 

There are DIY kits available for you to do your own conveyancing and title work. This is perfectly legal, but it is incredibly risky. A licenced and registered conveyancer must meet certain requirements that mean they are at least competent in certain areas. There are different licencing requirements that include: 

• $2 million in professional indemnity insurance
• Completed 12 months experience under the supervision of a licenced conveyancer.
• Legal training or corresponding requirements. 
• Meet several specialized training and educational requirements. 
• How to Save Money Hiring a Conveyancer

Typical conveyancing costs vary, but most charge search fees and a percentage of the sale price. It is good to shop around and compare what they have to offer. Here are a few tips for saving money. 

Read the fine print

Make sure you understand the conveyancer will and will not do. Read all contracts before you sign them. 

Check qualifications

Make sure the professional you hire is qualified. Otherwise, something could be missed, and this can cost you more in the end. 

Ask for recommendations

If you know others how have transferred property in the area, as them for recommendations. They can often be a good resource for information.

Should I do the conveyancing myself or hire a professional?

The DIY option with a kit purchased online might sound like a good idea cost-wise, at first. However, they are general and do not cover specific regulations and requirements that apply to you locally. Additionally, there might have been changes in the law since the kit was published. You can get in deep water legally if you make a mistake, so it is always best to hire an experienced professional. If you are on a tight budget you should be able to find cheap conveyancing services that are still reliable if you do your research properly.

 

* The cost data is based on Oneflare and third-party sources