TOP QUESTIONS

What are the costs of buying a property?

There are many costs and expenses involved in any real estate transaction. It is important that you are aware of all these costs so that you can budget for them. It can be disastrous if you do not prepare for all possible expenditure.

Costs and expenses arise in various areas of the transaction. Some may not be obvious or may be unexpected.

This is an overview of the expenses you can generally expect in buying a property:

  • Fees and charges payable for obtaining any loan (mortgage);
  • Stamp duty;
  • Registration fees (paid to the Lands Titles Office);
  • Search costs;
  • Rates and Taxes for the period that you will own the property;
  • Conveyancing fees and minor costs; and
  • The costs involved in moving.

There may be other expenses in specific transactions; always ask your conveyancer for details of anything which may arise in your particular purchase.

There are various websites that can assist you to calculate some of these costs.

Stamp duty calculators are available on the REIWA website.

First home buyers may be eligible for a Commonwealth Government grant (the First Home Owners Grant) and for a rebate of stamp duty.

What are the costs of selling a property?

There are many costs and expenses involved in any real estate transaction. It is important that you are aware of all these costs so that you can budget for them. It can be disastrous if you do not Prepare for all possible expenditure.

Costs and expenses arise in various areas of the transaction. Some may not be obvious or may be unexpected.

This is an overview of the expenses you can generally expect in buying a property:

  • Loan repayments;
  • Fees and charges payable to discharge any loan (mortgage);
  • Sales commission and advertising costs payable to your agent;
  • Search costs;
  • Rates and Taxes for the period that you will own the property;
  • Conveyancing fees and minor costs; and
  • The costs involved in moving.

There may be other expenses in specific transactions; always ask your conveyancer for details of anything which may arise in your particular sale.

So what do conveyancers charge?

Any real estate transaction is a complicated process with many costs involved. One of these will be the fees paid to your conveyancer.

You should talk to your conveyancer about all the costs in your transaction including the conveyancing fees – none of us like surprises!

As a professional body, the AIC does not set or regulate the fees charged by our members. Conveyancers have expert skills to complete your transaction effectively and efficiently; their fees reflect their professionalism and the complexity of your transaction. Whatever the fee, remember you are buying peace of mind.

Remember, your conveyancer is working for you and is as important to your financial future as your bank manager or your accountant.

Your conveyancer will:

  • Protect your interests;
  • Be your advocate;
  • Keep you informed at every step; and
  • Ensure you can exercise your rights and meet your responsibilities.

All transactions are not the same. Sometimes a transaction requires additional work that was not foreseeable at the outset. A conveyancer is entitled to charge additional fees for additional work. If seeking a quote for fees, you should always ask ‘What is included in this fee?’ and ‘What services will attract an extra fee and how will that fee be calculated?’. You should also ask your conveyancer to notify you if it becomes clear additional work is required.

 

 

 

 

Do I need a solicitor?

No, registered conveyancers are experts who specialise in conveyancing work; you do not need to use a solicitor at all. Some conveyancers are qualified solicitors but many are non-solicitors who have completed specialist tertiary education in conveyancing. In fact, many law firms employ registered conveyancers to undertake their conveyancing work. Membership of the AIC is your assurance of your conveyancer’s expertise and professionalism.

Are conveyancers cheaper than solicitors?

Not necessarily. Conveyancers and solicitors both provide specialist, professional advice and charge for their services accordingly. In most cases, the fees will reflect the complexity of the transaction; this is true whether you use a registered conveyancer or a solicitor. The real difference is that conveyancers are specialists who work only in this area whereas solicitors work in many areas of the law. As with most things in life, you tend to get what you pay for. A registered conveyancer offers expert advice, professional service and peace of mind.