If you are thinking of buying or selling a property then you will soon realize that there will be many conveyancing costs that you did not expect. In order to budget for the fees of the overall property transaction you should obtain quotes from the people involved.
If you are selling a property then usually the fees payable to an estate agent or a broker are paid by the seller. It is important to have an estimate of the fees payable in certain circumstances. For example, if your estate agent or broker prepares advertising material, promotes the property and then you withdraw from the sale what fees will you need to pay? On the other hand if you proceed with the transaction what fees will be payable? Some agents and brokers use a sliding scale of fees so depending on how much the property sells for they get a percentage of that commission. Others work on a fixed cost. You will also need to know the fees payable for advertising and promotions and if they are included in the overall cost or are payable separately. Naturally, so you can budget wisely it is a good idea to have this in writing and in some countries this is required by law. Another important thing to remember is when the fees are payable. Often estate agents require the advertising fees to be paid in advance or upfront before the property is sold. With proper quotes in place you should be in a position to better estimate the price that you need to sell for and the fees involved with such sale.
There will also be legal costs and fees involved in the sale and purchase of property. Some countries require that a conveyancing quote be given to the client prior to the transaction commencing. Even if this is not the law in the country where you are buying or selling you should still ask for a conveyancing quote in writing. This will enable you to budget the costs and expenses of the transaction.
Conveyancers charge for the cost of their time in reviewing legal documents and attending to the conveyancing process. The charges can be based on an hourly rate or a fixed rate. Residential conveyancing is generally not as complex as commercial conveyancing and is usually calculated on a fixed rate. To get an idea of prices ring around a number of firms that specialize in property transactions and obtain quotes from them for a fixed rate. When you are calling also ask what the normal disbursements will be and how much the usual cost is for this.
Once you have obtained a number of quotes over the phone you can then assess which firm you would like to obtain a written quote from. One of the factors to consider is that the cheapest quote is not necessarily the best quote. You should make sure that the work being carried out is done by a qualified professional and it is their time as opposed to an unqualified person being supervised by the professional that you are paying for. In addition, some quotes for the costs component of the transaction may be low because some firms use disbursements to add in anything additional.
Disbursements are the fees paid for reports, certificates, photocopying, phone calls, fax fees, stamps, stationery and the like. A lot of the fees payable for certificates and the like are payable to government departments and are fixed fees and cannot be negotiated. You should carefully check the fees that are quoted as some firms charge a high amount for photocopying for instance.
Another consideration is how the bill is prepared. Some firms are unable to calculate with accuracy the cost of photocopying and phone calls for instance so they take a guess at the amount that is payable. Other firms have sophisticated billing and costing software and are able to produce a report of the actual cost.
It is also important to remember what work is included in the conveyancing quote as standard. For instance, if you are buying a home and need to obtain finance from a bank to complete your purchase the cost of liaising with the mortgagee and attending to their requirements may be outside the scope of the conveyancing quote. If that is the case, you should ask for a separate quote for that work.
When you are discussing your conveyancing quote you should ask what work will be included and what is not included for the price. You should also ascertain when the fees will be payable and what the terms are for payment.
