What Other Costs on Top of What I Pay My Conveyancer?

Your conveyancer or solicitor will normally charge you their professional penalities plus any disbursements which include fees for any searches and settlement fees. However on top of these fees, there will also be other compulsory fees and so you will need to budget for these as well.

Stamp Duty

Your relevant State or Territory Revenue Office will impose a stamp duty levy on most transfers of property. The stamp duty is payable by the purchaser or transferee. The stamp duty rate depends on which State or Territory the property is in and the value of the purchase price or how much the property is worth.

Your conveyancer or solicitor will be able to calculate the stamp duty payable for you and also advise you if there are any concessions available to you, depending on your circumstances. For example, holders of a recognised concession card are entitled to a concessional stamp duty rate.

Transfer Cost

The purchase or transferee to a conveyancing transaction will also have to pay a Transfer Fee to the relevant State or Territory Land office. Like the stamp duty rate, the amount of the Transfer Fee depends on which State or Territory the property is in and the value of the purchase price or how much the property is worth. The Transfer Fee is usually capped and so if you reach a certain amount, then you shall pay that amount, regardless of how much the you paid for the property or how much the property is worth.

Your conveyancer or solicitor will be able to advise you as to the relevant transfer fee. There are usually no concessions for transfer fees.

Bank Fees

All banks and financial institutions will charge you some form of fee, whether you are purchasing or selling.

If you are purchasing a property and obtaining a mortgage, then they shall charge you application fees, their legal costs, settlement costs and any other charges they deem fit. It is best to check the bank’s Loan Offer prior to signing any mortgage documents to check what fees you will be liable for, both initially and during the life of the loan.

If you are selling a property then the bank will charge you their discharge fees. Further, if you are paying out your loan early (for example within 4 years of purchase), then you will also be liable for the bank’s early exit fees. The exit fees are usually one of the most contentious fees chargeable by a bank and so it is best to ensure that you fully understand what you have to pay should you decide to pay out the loan earlier than expected.