An often asked question and frequently a major consideration for most people when selling their property is: how much is it all going to cost.
The reality is that the answer to that question is: it depends.
It depends on which service provider you use, what is required as part of the process and how that service provider charges.
Let us deal with one massive misconception and that is – conveyancers are cheaper than lawyers.
That is simply not true.
In an ideal world, your service provider should be chosen on the basis of their relevant qualifications, skill and experience, as well as their attitude and how frequently and clearly they keep you updated and explain the process to you. You should have peace of mind and reassurance every step of the way.
Cost is Dealt With Differently Depending on Supplier
However, cost is definitely a consideration and different providers deal with this differently:
- Some have a great deal of operating expense and covering those expenses is reflected in their price. It has nothing to do with their skill or service.
- Some charge a fixed lump sum rate, while others charge according to the time they spend on your matter. You should avoid the latter at all “costs”.
- Some charge sundries, like paper clips, envelopes, telephone calls and postage stamps, others do not, but this can also influence price.
So cost can vary depending on the service provider.
The Process Itself May Have Unique Factors
What is required in the process may also influence the price.
- Some transactions may have something specific about them that requires additional work not typical of a normal sale transaction:
- There may be issues involving the removal of a caveat on title, or
- Resolving a dispute with a neighbour in respect of a boundary, or
- Resolving issues around ownership of the property, or
- There may be additional requirements involved when the sale is the subject of a deceased estate or subject to probate.
So if there is something not typical of your average sale, the cost may be affected and again, how it is affected will depend on the service provider and the nature of the issue that needs to be dealt with.
Bear in mind, for many such additional issues, actual legal advice and assistance will be required. Conveyancers are not solicitors and are unable to provide such advice. That is why it is always recommended you engage a solicitor for such transactions for that added reassurance and flexibility.
The Infamous Asterix*
Many solicitors and conveyancers might advertise a very low and attractive rate for their services, only to be followed by the infamous asterix and small print. Sure, they may state that the conveyance will cost $500, but then you need to:
- add GST; and/or
- add disbursements; and/or
- add sundries; and/or
- add the multitude of other costs not included in the flat fee advertised.
So you need to remain weary and diligent.
We have already touched on different pricing structures, how additional services may influence the price, as well as additional expenses like sundries, but what about disbursements.
When considering the average cost of conveyancing when selling property, you also need to factor in disbursements.
No matter which provider you use, in New South Wales, attached to every Contract for the Sale of Land, which is what will be prepared for you as the vendor (seller) of a property, there must be certain documents.
These documents will normally include:
- A title search of the property;
- A plan of the land or strata plan;
- A sewer diagram;
- A Section 149(2) (and sometimes Section 149(5)) Certificate from the Local Council; and
- Any dealings on the land, such as registered easements.
Now while most of these documents are a low fixed cost, some can vary. For instance, the price of the council certificate can vary from council to council and the price may also vary if it is required with urgency. Similarly, each dealing on the title will need to be included, so the more there is, the more it will cost.
These are mandatory documents and must be included in every contract, for there to be a valid contract and to enable the property to be listed and marketed.
Average Cost of Conveyancing When Selling Property
From our experience and market research, the average cost of conveyancing when selling your house is usually:
- Approximately $1,200 plus GST for professional fees; and
- Approximately $200 to $500 for disbursements.
So unfortunately, if you are after the average cost of conveyancing when selling property, there is no black and white answer and naturally so, as the above considerations can all come into play from provider to provider, but the above is a sensible market average generally speaking.
What Do We Charge?
We do not believe in the Asterisk. We have a very clear and informed structure.
Our professional fees are fixed at an ultra-competitive $990 plus GST.
We do charge disbursements as explained above. However, our difference is that we discuss those disbursements with you and explain them to you in advance. We always obtain your approval before actually incurring any expense. We also do not add any margin on these disbursements. We simply purchase them on your behalf and seek a direct reimbursement of the actual cost.
We DO NOT charge you for telephone calls and postage stamps and envelopes. There is simply no additional charge.
You know what you will be liable to pay before any cost is incurred. That transparency gives both you and us reassurance and peace of mind from the outset.
In addition, we are property and construction lawyers, capable of and qualified to provide you with legal advice that may fall outside the scope of a typical conveyance (which conveyancers are unable to do). We speak in simple language and take the time to ensure you understand the process and are informed every step of the way.