Conveyancing Fees: The 7 Questions You Need To Ask To Get The Best Deal.
Property is a tricky business. The mission for obtaining, selling, or transferring property from one party to another is immersed in many processes and laws. More often than not, the average person doesn’t have the skills or time to decipher and follow these processes to ensure a secure property transfer – so they’ll pay a professional conveyancer to help them along the way. The question is: how much should they be paying for this service, and what does it involve?
The conveyancing costs on a property depends on its unique condition and circumstances. An expert conveyancer can give you an accurate assessment of the processes involved for the particular property you’re interested in buying or selling, helping you to ensure a smooth sale or purchase.
All About Conveyancing Fees
Conveyancers are qualified professionals that specialise in all aspects of property dealings. In addition to ownership transfers, they prepare and lodge all the documents required to complete a property transaction, including the contract of sale and transfer of land document. And most importantly, they conduct vital searches that can reveal new information about the property.
For example, they will look for planning restrictions and zoning regulations that could affect a property’s value, whether any government authority has a vested interest in the land or if there is any unapproved construction on the land.
Conveyancing services also include providing advice on what’s required of you by state and federal law and on how to go about arranging building and pest inspections or paying the stamp duties.
In addition, conveyancers will keep the buyer’s deposit money in a trust account, work out how to adjust the rates and taxes between buyer and seller, liaise with banks and other financiers and oversee the final settlement of the property.
Conveyancers specialise in property law. To do so, they must have completed a minimum two years’ study at tertiary level in this area and have had at least two years worth of supervised practical experience in conveyancing before they can apply for a conveyancing licence.
Then, they must undertake ongoing professional development each year to retain that licence. However, the specific requirements may vary, depending on each state’s or territory’s conveyancing Act.
Who can do conveyancing?
You can seek conveyancing services from:
- A licensed conveyancer
- A solicitor
Many solicitors practice all areas of law whereas as conveyancers specialise in Conveyancing. Their understanding of legal processes and documents such as the Sale of Land Act involved in transferring land and property from one person to another makes them ideal for advising property owners and buyers of the requirements involved.
How Much Does Conveyancing Cost In Melbourne, VIC?
Melbourne is considered one of the world’s auction capitals. As such, it’s important to understand how buying a house in the auction differs from a private sale. In such situations, it is particularly important to engage a conveyancer that will understand the rules and laws around property purchases through auction.
While there are no regulations on conveyancing fees, Consumer Affairs Victoria outlines the legal conveyancers fee disclosure requirements, where:
- Conveyancers must provide their fees upfront if known at the start of client representation
- If the conveyancer can’t provide upfront costs (for example, the particular conveyancing case is unusual, or has particular requirements), they must detail how they calculate their fees
They also need to provide clients with invoices, and state how and when the invoices will be provided.
In Melbourne and surrounding Victoria, the conveyancing fee ranges from $800 to $2,200, depending on the value of the property, type of property and if you opt for a conveyancer or a solicitor. Additionally, disbursement costs may be incurred by the conveyancer as they research your property and relevant legal requirements, e.g. for title searches or council requirements. Disbursement costs in Victoria generally run under $400 dollars.
Questions To Ask Your Conveyancer
Conveyancing is a complex process.
Asking your conveyancer the right questions will help assure you of their expertise, and prepare you for the processes involved. They’ll be able to give you an accurate idea of the costs involved in conveyancing, and help you understand what these costs are covering.
When you look at a quote, you want to see exactly how much it will cost you. The fee should give you a breakdown of the services provided and the quote should make clear what the disbursements cost range will be.
While costs are undoubtedly important, there are other factors to consider when shopping around for a conveyancer or solicitor, including experience, location, reputation and the level of service provided.
When deciding on whom to choose, consider your budget, the complexity of the transaction and your needs, as well as your own abilities to deal with legal issues. Also remember that this is likely to be the biggest financial decision you will make in your lifetime and consider the risks of not getting it right.
You also don’t need to wait until you are ready to sign a contract. It makes sense to select your conveyancer or solicitor as soon as you decide to buy or sell a property.
To help you choose a conveyancer, we suggest you explain your requirements to two or three conveyancers and ask them a range of questions such as:
- Are you a member of the Australian Institute of Conveyancers?
- What’s the maximum I can expect to pay in fees and charges?
- What are your fees and what services are included in those fees?
- What will any additional services cost?
- What government fees and charges will I need to pay?
- How long will settlement take?
- How will you keep me up to date with what’s happening?
What Your Conveyancer Can & Can’t Do For You
It is important that you understand what your conveyancer can, and can’t, do for you. It is also vital that you explain very clearly your position and your requirements. You should notify your conveyancer about anything that could affect the transaction.
If you have severe financial restrictions, tight time limits or any other specific concerns or special requirements, be sure you explain this at the very beginning. Nobody wants surprises or misunderstandings to ruin your transaction.
Whether you engage All Hours Conveyancing, make sure you do your research and ensure your conveyancer has the necessary qualifications, licenses, experience and insurance.
More detailed questions will be tailored to your case and situation, and can involve a multitude of areas. Doing some basic research on property areas such as :
- Stamp duty
- Private auctions
- The processes involved in buying or selling a house in your state or
- The requirements to transfer a property of land title from one person to another
This research will help you ask the right questions for your conveyancer, and ensure that the conveyancing process is suited to your needs and situation, helping the transfer run smoothly.