Conveyancing Costs

[Julia]

It's a long time since I bought or sold property so would appreciate more experienced members' comments on the reasonableness or otherwise of the following estimated costs.

I'd be buying the land from a builder. I'd anticipate he would have on hand a standard contract which can have the appropriate details inserted, so I'm not asking a solicitor to prepare a contract for purchase, just check that all is OK. I suppose this includes eg title search. What else?

Then I would also want the solicitor to look over the contract with a different builder to build the house.

The following is what I've received:

If you want to appoint us, our fee for a purchase is $880.00 (incl. GST) plus outlays. Your outlays are search fees which I give you a full list of to choose from. The comprehensive searches including Council, titles, land tax, main roads and flood generally cost around $600.00. The other big cost is stamp duty. If you let me know what your proposed purchase price is, I can calculate stamp duty for you so you know exactly how much that will be.

With the building contract, it is a good idea to have us look over it and our fee for doing this, including giving you a full written advice and discussing any minor amendments that may be needed with the builder is generally around $300.00.

Is the above average? It seems rather expensive to me for minimal work, but I may be quite out of touch.

 

[DB008]

Building inspector to give you the all clear, l think that's only a few hundred.
I put lawyer fees down to about a grand.

I haven't done this in a while either, so l've probably forgotten something...

 

[Tyler Durden]

I have some light experience in this and I can say that $880 is cheap. My old firm charged $1650 and there was no shortage of customers.

Although I say $880 is cheap, is it reasonable? Probably not, given the amount of work that it actually requires.

 

[Bill M]

Is the above average? It seems rather expensive to me for minimal work, but I may be quite out of touch.

Hi Julia, I purchased my property in September 2009 and I agree with the other 2 posters, the fees you quoted are about right.

I paid $1,275 for the conveyancers professional fees plus expenses on top. This was for a 340k house in regional NSW. Hope that helps.

 

[tech/a]

Julia it's about right.

A few hundred here and there. Have a talk around and see who people recommend in your area as a conveyencer.

Check easements and any securities/encumberances over the land.
Also see if you can get site survey covered by your builder this can range from $ 600 to $ 800. Before purchase as he owns it and it should be fully pegged.
Photograph the pegs and let him know that if any go missing he --- or the trade that knocked it out---will be held liable to replace it/them.

Flood very important you don't want it flooding. Very expensive.

Also check if there is a soil report and see it before you sign anything.
You want to look for 2 things--- refusal---likely Rock and expensive footings
Or Fill which if un compacted or just loose (I came across land built on an old dump site once the fill was 11 meters deep and that's not good!)&--- could also mean expensive footings.
If your not sure contact me and fax it down ---- generally not an issue but worth looking into.

Check also how far away services are
Electricity/water/sewer/gas/phone.
If connections are too far away it can be very expensive to gain connections.
If roads have to be dug up and poles put up all of a sudden ---- oops.

So there is the best due diligence I can muster at 5 am!

Don't be concerned while it seems a little daunting it's just diligence.
99% it's all ok.

 

[joea]

Also check if there is a soil report and see it before you sign anything.
You want to look for 2 things--- refusal---likely Rock and expensive footings
Or Fill which if un compacted or just loose (I came across land built on an old dump site once the fill was 11 meters deep and that's not good!)&--- could also mean expensive footings.

Julia
I can add, if a brick house is to be built, a Penetrometer test on where the foundations are to go will give analysis for foundations size and strength.
The builder will know about this. It should be a part of the soil analysis test.
This will be the first step to prevent walls from cracking in the future.

It just happens that one of my friends is a Civil Engineer.
joe

 

[Tink]

Good post tech

Yep floods - no swamp land before the land was cleared.
Also wasnt a tip beforehand, we just had some pull out after their soil test.

Also too much fill, as tech has said, costly for foundations.

 

[Julia]

I have some light experience in this and I can say that $880 is cheap. My old firm charged $1650 and there was no shortage of customers.

Although I say $880 is cheap, is it reasonable? Probably not, given the amount of work that it actually requires.

Hi Julia, I purchased my property in September 2009 and I agree with the other 2 posters, the fees you quoted are about right.

I paid $1,275 for the conveyancers professional fees plus expenses on top. This was for a 340k house in regional NSW. Hope that helps.

But it isn't just $880, Tyler. It's just a block of land for around $200K which is currently owned by a builder who no longer wants to build a display house on it, plus checking a contract for the proposed building of new house.

All up it comes to just under $1800 which seems a lot when they are not even being asked to prepare a contract.

 

[Macquack]

If you have the time, you can do it yourself with a conveyancing kit.

Years ago I used a Law Society of NSW conveyancing kit to both sell a property and purchase a property.

Here is a link to a Queensland Do it Yourself conveyancing kit ($129).
http://www.diyconveyancingkit.net.au/diy-conveyancing-qld.html

 

[Julia]

Thanks Macquack. Will have a look at it though would probably worry about getting something wrong.

 

[white_crane]

Just bought a house myself.

It cost me just under $1500 for professional fees and searches.

I would think that your fees should be a slightly less than that.

 

[Julia]

Thanks, White Crane. I did some shopping around and have ended up with around $1100 including the various searches. Much better than what I was originally quoted.
Best wishes for enjoying the new house.