Avoiding Hidden Costs in a Conveyancing Transaction: What You Need to Know

Avoiding Hidden Costs in a Conveyancing Transaction: What You Need to Know

Buying or selling a property in New South Wales? One of the biggest concerns for buyers and sellers alike is unexpected costs in the conveyancing process. While you may budget for legal fees and stamp duty, there are often hidden costs that can surprise you.

At SL Conveyancing, we believe in transparency. In this blog, we’ll break down the hidden costs you should watch out for and how to avoid them when buying or selling property.

1. What Is Conveyancing and Why Are There Extra Costs?

Conveyancing is the legal process of transferring property ownership from one party to another. While most people budget for standard conveyancing fees, there are additional costs that can arise, depending on the complexity of the transaction.

Many of these costs are necessary, but knowing about them upfront can help you plan your finances better and avoid stress at settlement.

2. Hidden Costs to Watch Out For in a Property Purchase

🏡 Government Fees & Charges

• Stamp Duty – One of the biggest costs when buying a home. The amount depends on the property value and whether you qualify for first-home buyer concessions.

• Transfer Fees – NSW Land Registry Services charges fees to transfer the property title into your name.

• Registration Fees – If you’re taking out a mortgage, you’ll also need to register the mortgage, which comes with an extra fee.

💡 Tip: Use the NSW Revenue Stamp Duty Calculator to estimate your stamp duty costs before you buy.

📜 Additional Searches & Reports

Your conveyancer will conduct searches to ensure there are no hidden legal issues with the property. Some essential reports include:✔ Title Search – Confirms ownership and checks for restrictions.✔ Council & Water Rates Search – Identifies any unpaid council rates.✔ Pest & Building Reports – Helps detect structural issues or termite damage.✔ Strata Report (for apartments) – Reveals outstanding levies, disputes, or defects.

💡 Tip: Ask your conveyancer which searches are mandatory and which are optional to control your costs.

💰 Lender & Loan-Related Fees

If you’re taking out a mortgage, your lender may charge:✔ Loan Establishment Fees – One-off fees for setting up your mortgage.✔ Lenders Mortgage Insurance (LMI) – If your deposit is below 20%, you may need LMI, which can add thousands to your costs.

💡 Tip: If possible, save at least 20% deposit to avoid LMI and extra lender fees.

3. Hidden Costs to Watch Out For When Selling a Property

💼 Agent & Marketing Fees

If you’re selling your home, real estate agents charge commission (usually 1.5% – 3%) plus marketing costs for listings, photography, and advertising.

💡 Tip: Ask your agent for a full breakdown of marketing fees before signing an agreement.

📝 Contract Preparation & Adjustments

Sellers need a Contract for Sale prepared before listing their property. Some additional costs include:✔ Legal document fees – Preparing disclosure documents like zoning certificates, sewer diagrams, and title searches.✔ Financial adjustments at settlement – Council rates, strata levies, and water bills must be adjusted so both parties pay their fair share.

💡 Tip: Work with a fixed-fee conveyancer to avoid unexpected legal costs.

🏦 Mortgage Discharge Fees

If you have an existing mortgage, your lender may charge a discharge fee to close the loan. This can range from $200 to $600, depending on the bank.

💡 Tip: Contact your lender early to confirm discharge fees and avoid settlement delays.

4. How to Avoid Hidden Costs in Conveyancing

✔ Choose a Fixed-Fee Conveyancer – At SL Conveyancing, we offer transparent pricing so you know exactly what to expect.✔ Ask for a Cost Estimate Upfront – Before engaging a conveyancer, request a detailed breakdown of potential fees.✔ Budget for Adjustments – Be prepared for council rates, strata levies, and other adjustments at settlement.✔ Read Your Loan Agreement Carefully – Watch out for bank fees, LMI costs, and mortgage discharge fees.

5. Why Choose SL Conveyancing?

At SL Conveyancing, we believe in clear, upfront pricing—no hidden surprises! Whether you’re buying or selling, we guide you through the process, ensuring you understand all costs involved.

💬 Ready to make your property transaction stress-free? Contact us today for expert advice and a no-obligation quote! 🏡✨

📞 Call us: 1300 723 803📧 Email us: slc@slconveyancing.com.au🌐 Visit our website: www.slconveyancing.com.au