Finding the right house is the first step in the conveyancing process. Sometimes this can take months or years. Once you have found the right home then the process of transferring the property to you can start. This is known as conveyancing. Conveyancing simply means transferring the title of property from one person to another.
If you are buying a home then you will usually need to make enquiries as to the quality of the property, title and any proposals affecting the property. Of course, all countries have different laws and regulations and you should check what they are in your country or state before proceeding with the conveyancing transaction.
Often these enquiries will take the form of obtaining reports from experts like surveyors, pest controllers, builders and engineers. All of these reports cost money and are part of the conveyancing costs that you will need to pay from conveyancer, solicitor or lawyer.
Your legal representative will often obtain these reports on your behalf. These will form part of the disbursements of your conveyancing costs. In addition to paying for the reports other disbursements can include items like photocopying, fax fees and telephone calls.
You will also pay for the ti
me of your legal representative to attend to your matter. These fees can include reviewing documents, correspondence, obtaining reports and attending to all matters required to transfer the property.
Conveyancing costs can be calculated in two ways usually. Some conveyancers like to charge on an hourly rate and others charge a fixed rate for their time. Usually, you can negotiate the costs prior to the commencement of work being undertaken.
In addition to the fees payable to your conveyancer other conveyancing costs associated with the purchase of your home could include payment of any fees to your lender, taxes and duties (depending on the country where you are purchasing), payment of rates and other outgoings from the time you own the property to the end of the rating period. Because conveyancing costs can add up rather quickly it is best to have a budget in mind and some funds extra in case it is needed.
If you are selling a property generally your conveyancing costs will comprise the fee to prepare the contract for sale, obtain any documentation required by law to be annexed or incorporated in the contract and miscellaneous disbursements. Of course, you will also need to pay your estate agent or broker if you are using one as well.
