Conveyancing Fees - Australia 2018 Average Costs for Buying and Selling

1. Conveyancing Fees and Costs Source: https://www.thinkconveyancing.com.au/conveyancing-fees

2. The Full Guide to Conveyancing Fees and Costs “How much does conveyancing cost?” This is a very difficult question to answer. Your conveyancing needs are dramatically influenced by your specific Lot, the different parties involved in your transaction and your personal goals and needs. Because of this, it’s impossible to provide a precise total conveyancing cost from the outset. Conveyancers can only provide an estimated cost based on the good faith (that nothing unusual happens during your transaction). Unforeseen events and risks do happen – so exact costs are only provided close to settlement. 2 Source: https://www.thinkconveyancing.com.au/conveyancing-fees Agile Team Charter

3. How is Conveyancing Priced? It is a standard practice across Australia to provide a quote under these three categories: Fixed Professional Legal Fee – The Labor, Conveyancing Works, Lawyers’ Time, Conveyancers’ Time. Standard Search Fees – Third Party Costs payable to Council, Utilities, etc. Additional Costs – To pay for services outside a “Standard conveyance” and “Standard Search Fees”. The sum of all of the above determines your final conveyancing fee. Your final conveyancing fee (determined by the specific work/labor required, additional searches and additional costs) is only finalized once your File Owner and Lawyer work on your file with “due diligence Source: https://www.thinkconveyancing.com.au/conveyancing-fees

4. What is due Diligence? Due diligence will uncover risks or any special circumstances that can affect your transaction. This is important as any discovered risks will determine mitigate actions and work required to protect your interests and rights. Should the work fall outside a “standard conveyance,” additional costs and searches may be required. What falls outside of the “standard conveyance” is a variable that can affect your final cost. 4 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

5. What is a Standard Conveyance? The definition of a standard conveyance differs from law firm to law firm. It should be defined in the Appointment Terms and Conditions and listed in the Scope of Work within the Engagement Letter. Please ensure that you are satisfied with the Scope of Work before nominating a conveyancer. The Think Conveyancing standard Scope Of Work is as follows: Tasmania Sellers Scope Of Work New South Wales Buyers Scope of Work Tasmania Buyers Scope Of Work Queensland Buyers Scope of Work New South Wales Buyers Scope of Work Victorian Buyers Scope of Work Victorian Buyers Scope of Work 3 7 5 4 1 6 2 5 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

6. What is a Fixed Professional Legal The Fixed Professional Legal Fee is the money paid for the Conveyancing Service as defined in the Scope of Work. This fee pays for the Lawyers, Conveyancers, Support Teams’ time, rent and electricity. As for the Legal Fee, as long as the works required for your property fall within the definition of a “Standard Conveyance”, the Legal Fees will be 100% fixed and not change. We find most of our clients do not require “Additional Services” outside the scope of “standard searches”. “Additional Services” are works outside of the agreed Scope of Works. 6 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

7. What are Additional Services & Work Outside the Standard Conveyance? These are additional services that you may request. Here are some examples: General Power of Attorney drafting / review Deed of Rescission / Variation drafting / review Caveat Lodgment License Agreement drafting / review Land Contract Review – Off-the-Plan property These are not ‘standard’ as not everyone requires them. These services come at an additional cost. 7 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

8. What are Searches ? Searches are “requests for information” from third parties for Search Certificates. Examples of this include Title Search (provides Title particulars, ownership details and encumbrances), Land Tax Clearance Search (details of any outstanding payment of Land Tax due to the Office of State Revenue) and Plan Image (dimensions, gradient and other physical features of the Lot). This information is needed by the Conveyancer to do the Conveyancing Work and Due Diligence. Searches are third-party costs and are payable to the authorities. These expenses are required and mandatory (depending on the local government authorities) and come at an extra cost beyond the Fixed Professional Legal Fee. For example, if you need surgery, you pay a Surgeon for his labour. As the client, you are also expected to pay for the general anaesthesia and rental of specialised equipment (not the Surgeon). Searches, just like general anaesthesia and x-ray machines, are necessary expenses that cannot be avoided. 8 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

9. Example of a Searches Include: 9 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

10. Does the State affected the cost of Conveyancing? • Yes. Different states have different laws, legislation and Searches requirements. • For example: • Victorian Sellers; Requires Vendor Disclosure / Section 32 and Contract drafting; High Labour Intensity • Victorian Buyers; Requires Vendor Disclosure / Section 32 and Contract review; High Labour Intensity • NSW Sellers; Requires Vendor Disclosure / s 10.7 drafting; High Labour Intensity • NSW Buyers; Requires Vendor Disclosure / s 10.7 review; High Labour Intensity • QLD Sellers; No Vendor Disclosure / Agent typically drafts contract; Medium Labour Intensity • QLD Buyers; Extensive Due Diligence; High Labour Intensity 10 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

11. What are the Standard Searches ? Standard Searches are the bare minimum searches required according to State legislation and Conveyancing Law best practice. Provided that your matter falls under the standard conveyance (with no unusual circumstances), you are unlikely to need any Additional Searches. Below is the Think Conveyancing Standard Search Package for each State. • Victorian Buyers Standard Searches • Victorian Sellers Standard Searches • Queensland Buyers Standard Searches • New South Wales Buyers Standard Searches • New South Wales Sellers Standard Searches • Tasmania Buyers Standard Searches • Tasmania Sellers Standard Searches While the Conveyancer works hard to keep within the parameters of the Standard Searches, sometimes, she/he may recommend that you order Additional Searches. 11 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

12. If your Conveyancer suspects any “out of the ordinary risk”, they can request that you conduct an Additional Search. For example, your Conveyancer may discover that your property is located in an ex-mining area and advise that a “Contaminated Land Search” is carried out. If this search revealed a covered-up, deep bore in the backyard, exactly where the Granny Flat was supposed to go, you’d decide not to go ahead with the purchase of the property (on the basis of an unsatisfactory search result). As a “Contaminated Land Search” is not standard (most suburbs in Australia do not require them) you would pay an extra fee for this search. It is what’s known as ‘out of the ordinary’. In this example, while the cost was extra and outside of the standard requirement, you benefit by saving hundreds of thousands of dollars by avoiding the purchase of an unsatisfactory property. Additional Searches “ 12 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

13. Why searches are A must A Conveyancer’s job is to manage your risk. This is why you cannot ask your Conveyancer to use “out of date” searches, “free searches”, to “skimp on searches” or do no searches at all. Holding your Conveyancer to these demands effectively handcuffs them and prevents them from doing their job properly. For property transactions that involve a significant quantum of money, it is best practice to use “up to date” and insured Search Certificates. If a provider tells you that Searches are not required – be suspicious. Due diligence with property is a MUST, and it is impossible to do a high-quality job without sufficient Searches (standard and sometimes additional). 13 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

14. Why Due Diligence is Needed to Determine Final Price ? Why Due Diligence is Needed To Determine Final Price The above example demonstrates that the Conveyancers often need to be knee deep in the transaction before they can determine risk. Risk and special circumstances cannot be discovered until legal work commences. Conveyancers, therefore, are uncertain of all costs until the end of the settlement preparation process. In other words, intensive diagnosis work throughout the settlement and active due diligence are needed for a safe conveyance. This is why final pricing is so difficult. Risk is invisible until discovered and conveyancing works is elastic! 14 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

15. Why Due Diligence is Needed to Determine Final Price ? As your Legal Team, it is our duty to ensure that: All the legal paperwork is completed correctly; All outstanding amounts owed – e.g deposits, penalties, out of pocket costs – are fairly transferred or paid for; Should any changes be to the transaction be required, the correct legal protocol is followed. If any of these matters become unhinged, then risk is potentially introduced, and extra work may be required. The variable sum of all these works, the multi-dimensional paperwork requirements, the extra third-party costs and any out of ordinary legal labour to mitigate risk will determine your ultimate conveyancing fee. Finally, risk sometimes happens right at the last minute. This is why we can only calculate your final conveyancing invoice at settlement. 15 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

16. Does the cost o the property affect the cost of Conveyancing ? In Australia, the cost of the property does not affect the conveyancing price. The service fee for a $350,000 residential property is the same as a $2,000,000 residential property. 16 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

17. Does the Type of Property affect the cost of Conveyancing ? Yes. For example, an Apartment generally has a Body Corporate (Owners Corporation). This means there will be an added Body Corporate search required for the transaction. 17 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

18. What else can effect cost ? Search fees can vary dramatically across City Councils (see the examples below for how fees differ between locations). Also, it is the third parties, and not the Conveyancer, that control the cost of the Certificates. Note the huge difference in prices between locations. This is why you must always ask for an up-to-date quote. • VICTORIA • NEW SOUTH WALES • QUEENSLAND 18 Source: https://www.thinkconveyancing.com.au/conveyancing-fees

19. Thank You Source: https://www.thinkconveyancing.com.au/conveyancing-fees