Whether you are selling or buying a property, it’s important to take advantage of two services that are offered by a real estate agent and a solicitor. Where a real estate agent takes care of the initial process of showing you the house and conducting negotiations, the solicitor helps you with the mortgage and the filing of the paperwork.
Neither of these processes comes at a cheap price. You need to be very careful in keeping an eye on things before the costs escalate. Apart from the conveyancing fees, which can be anywhere between from $900 to $1,200, you also need to keep in mind the disbursement fees.
The Value of a Solicitor
You are probably thinking that why I need to hire a solicitor form a reputable company such as myplaceconveyancing.com.au, right? Well… think of it as this way: without a solicitor you might be walking into a trap and with no connections in the legal or real estate department, you might lose your dream house.
Conveyancing Costs
Following are the costs involved with hiring a conveyancer and for what reasons:
According to the NSW Division of Australian Institute of Conveyancers (AIC), the disbursement charges are as below:
- Local Council Building Certificate: $250
- Local Council Certificate Rates: $65
- Local Council S149 Certificate: $53 – $133
- Local Council Certificate for Pool Compliance or Non-Compliance: $150 – $450
- Title Search: $20 – $100
- Drainage Diagram: $25
- Land Tax Clearance: $20 – $25
- Sydney Water Certificate Rates: $20 – $25
- Department of Education: $20 – $25
- Traffic and Roads Authority $20 – $25
- Environmental Protection Authority: $20 – $25
- Faxes, Postage and Stationery: $20 – $40
- Transgrid and Power Stations: $20 – $30
- Other transaction costs
Stamp Duty
On a house worth $750,000, the average stamp duty is $40,000. This is something that the solicitor makes sure is paid on time, which is under three months before settlement. Since the solicitor helps you with managing your mortgage along with providing some legal advice, it is worth the money to seek their expertise.
Inspection
The inspection fee varies from conveyancer to conveyancer, which includes 4 types of inspections:
- Building Inspections: Confirms the building’s structural soundness and reveals if there are any visible defects
- Pest Inspections: Reveals any pest infestation or its signs that a treatment had been done before
- Strata Inspections: Done on the records of the house to find out whether the house has structural problems or not
- Swimming Pool Inspections: Confirms the pool’s structural soundness and its registration
As you can see, a conveyancer is central to the home buying process because the inspections are done in a precise manner, which you cannot do on your own. When searching for a conveyancer, one thing that you should make sure is that the total cost involves the conveyancing fee, as well as the disbursements. This will give you an idea of whether the amount you are paying is of value or not.
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