FROM THE BLOG

When it comes to property transactions in Victoria, one common question that often arises is: Who pays the conveyancing fees, the buyer or the seller? Understanding how these fees are typically distributed is crucial for both parties involved. In this article, we’ll delve into this important aspect of property transactions.

1. Buyer’s Conveyancing Fees

In most property transactions in Victoria, it’s customary for the buyer to cover their own conveyancing fees. These fees are associated with the legal and administrative work required to transfer the property title from the seller to the buyer. Here’s what’s typically included in the buyer’s conveyancing fees:

• Property Title Search: A crucial step in any property purchase, this search ensures the property is free from any encumbrances, caveats, or legal issues that might affect the sale.
• Contract Review: Conveyancers review the sale contract to ensure its terms and conditions are fair and compliant with all relevant laws and regulations.
• Negotiations: Conveyancers may negotiate on behalf of the buyer to address any concerns or issues that arise during the due diligence process.
• Settlement: Conveyancers handle the financial aspects of the transaction, including transferring the purchase price to the seller and ensuring the property’s legal ownership is transferred correctly.
• Stamp Duty Calculation: Conveyancers calculate the stamp duty payable by the buyer and ensure it is correctly paid to the government.
• Liaison with Other Parties: Conveyancers often communicate with real estate agents, banks, and other relevant parties to facilitate a smooth transaction.

2. Seller’s Conveyancing Fees

While the buyer typically covers their own conveyancing fees, the seller is responsible for their own conveyancing costs. These fees are associated with ensuring the legal aspects of the sale are in order, and the seller can transfer the property title to the buyer without any encumbrances. Here’s what’s typically included in the seller’s conveyancing fees:

• Contract Preparation: Sellers need to have a legally sound contract prepared for the sale of their property.
• Section 32 Vendor Statement: Before a contract can be entered into, the seller’s conveyancer must prepare a statement about the property to the purchaser containing the matters set out in section 32 of the Sale of Land Act 1962.
• Handling Mortgage Discharge: If the seller has an existing mortgage on the property, the conveyancer will work to discharge it upon completion of the sale.
• Settlement Process: The seller’s conveyancer ensures that the property title is transferred to the buyer and all financial aspects are settled correctly.

Conclusion

In Victoria, the convention is for both the buyer and seller to engage their own conveyancers and pay their respective conveyancing fees. This ensures that each party has proper representation and legal assistance throughout the property transaction process.

It’s important to note that conveyancing fees can vary based on the complexity of the transaction and the conveyancer’s fees. Therefore, it’s advisable for both buyers and sellers to obtain quotes from conveyancers, understand the scope of services provided, and factor these costs into their budget when engaging in a property transaction.

Ultimately, having professional conveyancers on both sides helps protect the interests of both parties and ensures a smoother and legally sound property transfer.

Both the buyer and seller will need to engage their own conveyancer to represent their respective interests in the transfer, and each party will be responsible for their conveyancer’s costs.

Further information on conveyancing can be obtained from the State Revenue Office website here: https://www.consumer.vic.gov.au/housing/buying-and-selling-property/selling-property/conveyancing-and-contracts-for-sellers or by contacting ConveyancingX.