Who Pays for Conveyancing When Buying and Selling a House?

The cost of conveyancing is typically borne by each party for their respective needs. Here’s how it usually works:

1. Buyer’s Responsibility

The buyer pays for their own conveyancer to handle the legal aspects of purchasing the property. This includes:

• Reviewing the Section 32 Statement and Contract of Sale.
• Conducting property title searches.
• Arranging for settlement.
• Advising on duties like stamp duty and other government fees.

2. Seller’s Responsibility

The seller pays for their own conveyancer or solicitor to handle the legal aspects of selling the property. This includes:

• Preparing the Section 32 Statement and the Contract of Sale.
• Liaising with the buyer’s conveyancer during the transaction.
• Ensuring the discharge of any existing mortgages on the property.

Other Costs in Conveyancing

Each party may also incur additional costs depending on the circumstances:

Buyer’s Additional Costs:

• Stamp Duty: Payable on most property transactions unless an exemption applies.
• Government Fees: Fees for lodging and transferring the property title.
• Search Fees: For title, zoning, and planning checks.

Seller’s Additional Costs:

• Discharge of Mortgage Fees: If the property is under a mortgage, the lender may charge fees for releasing the title.
• Owners Corporation Fees (if applicable): For any outstanding levies or required documentation.
• Adjustments for Rates and Utilities: Sellers typically pay for rates and utilities up to the settlement date.

Who Pays for Disbursements?

Disbursements (out-of-pocket expenses incurred by conveyancers, such as title searches or council certificates) are typically paid by the party requiring them:

• The buyer pays for searches and inquiries needed to assess the property.
• The seller pays for certificates and documents required to prepare the Section 32 Statement.