When it comes to buying or selling a property, a conveyancer will often come in handy. This is because the legal processes involved in the exchange of the property title between the buyer and the seller can be quite complex. A conveyancer will be able to navigate the legal process much easier and deal with all other parties involved in the sale. One significant element you need to think about is the amount of money you will spend on conveyancing. Costs of conveyancing often vary, but knowing what to expect can help you budget effectively, especially when you are the buyer. For this reason, here are a few things about conveyancing costs that you need to know.
The Legal Fees
The legal fees, sometimes known as the conveyancing fees, are the amount your conveyancer will charge for the legal work they will do for you. This fee will vary amongst conveyancing lawyers, and the scope of conveyancing may determine how much you pay. For instance, the more services a conveyancer offers, the higher your conveyancing fees may be. Conveyancers may charge you at a fixed or flat rate or sometimes at a sliding rate. Sliding rates are usually charged depending on the value of the property. This can be both good and bad. If you are buying a high-end property, for instance, the fees may be considerably high. With a fixed rate, you will be more certain about how much you are likely to spend and, therefore, can plan accordingly.
You can go for whichever option best works for you, but it's imperative to find out about the type of fee agreement. It's often recommended that you work with a conveyancer who offers a "No Sale, No Fee" type of agreement or guarantee. With this type of conveyancing agreement, you will not be required to pay the conveyancing fees if the property sale falls through. This will help you avoid a huge financial outlay on a property sale that fails.
Disbursements are usually the extra costs your conveyancer incurs while conducting third-party services on your behalf. These costs will also vary depending on the kind of services needed. Some of these services may involve searches (title searches, water rate or council searches, council building searches, etc), land tax clearance certificates, land registry fees, costs of buying a leasehold property and stamp duty tax. It is crucial that you understand all the costs involved.