Conveyancing is the legal transfer of property ownership from one party to another. Because of the complexity and legality involved in conveyancing, DIY approaches are rarely an option. Therefore, you will need a solicitor or licensed conveyancer to handle it for you, bringing one critical concern: cost.
Generally, conveyancing costs or fees will vary depending on your location and other factors like the type of title and property under transfer. However, knowing typical conveyancing fees will help you to budget properly and avoid surprises down the line. Here's more on this.
Primary Categories
Conveyancing costs come in various forms. However, the primary categories are legal costs and disbursements, also known as third-party costs. As the name implies, legal costs cover all the legal components of the property ownership transfer. They include the conveyancer or solicitor's legal advice, contract making and interpretation, negotiations, transfer of funds, preparation and lodging of the required legal documents, responding to either party's requests, etc. Legal costs will often vary from one solicitor or conveyancer to another, so you can always shop around for a more favourable quote while being keen not to overlook professionalism, experience, knowledge and expertise, reputation, etc.
On the other hand, disbursements are third-party payments your conveyancer or solicitor handles on your behalf. They cover several critical aspects and may vary depending on the property type, location and title being transferred, among other things. Examples include property searches, land registry fees, bankruptcy searches, bank transfer fees, property fraud checks and stamp duty. Similarly, the disbursements needed may depend on your specific case since not all property sales are the same. Therefore, talk to your solicitor or conveyancer to understand all the disbursements needed and to avoid unbudgeted costs later.
Payment Type
You can settle your conveyancing fees in different ways. In most cases, your choice will largely depend on the conveyancer or solicitor you select. For instance, you may be charged at a flat rate for the legal and disbursement costs. Your solicitor or conveyancer may also agree to a negotiated fee, or you may have to pay them a percentage of the property's sale or purchase price. Usually, fixed rates tend to be more cost-effective because they help you set up a clear budget. However, be sure to discuss your options upfront with your solicitor or conveyancer to ensure you select an option that works best for you.
Property Type
Are you buying a freehold or leasehold property? The latter refers to buying the structure (house, apartment, flat, etc.) but not the land on which it's built. These properties often come with additional conveyancing costs because the process tends to be more complex. For instance, you will need legal documents with clear, set-out obligations between you and the landlord. Your solicitor or conveyancer will also need to review the lease carefully to understand it, which can be time-consuming and complex.
Share26 July 2022
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