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WHAT IS CONVEYANCING?
Conveyancing is the transfer of legal title from one person or entity to another. A Conveyancer is a Licensed Property Transfer Specialist who arranges all aspects of the transfer process. WHAT ARE DISBURSEMENTS?
Disbursement are additional costs incurred within a Conveyancing transaction which include but are not limited to title and property searches and certificates, settlement agent fees along with sundries such as postage. Most Conveyancers will have a fixed fee which includes Standard Disbursements. We recommend when speaking to a Conveyancer to obtain a quote you ask whether their fee includes Disbursements and if so, what Disbursements are included so you know how much you be paying for the Conveyancing. Some Conveyancers do not have a fixed fee and will quote you a lower amount without necessarily mentioning the additional charges for Disbursements. WHAT ARE ADJUSTMENTS?
Adjustments are the pro rata of all property rates, taxes and charges along with income such as rent between the Vendor and Purchaser. Adjustments include Council Rates, Water Rates, Owners Corporation Fees, Land Tax Charges and Rental Income along with any other rate, tax or charge required to be proportion between the Vendor and Purchaser at Settlement. The Vendor is responsible for all rates, taxes and charges up to and including the Settlement Date and is also entitled to all rent and other income up to and including Settlement and the Purchaser is responsible for all rates, taxes and charges from the settlement date and is also entitled to all rent and other income from Settlement. The Purchasers Conveyancer will prepare the Adjustments usually between one to two weeks prior to Settlement and submit the same to the Vendors Conveyancer for approval. It is a legal requirement that all rates, taxes and charges be adjusted and paid in full for the current billing period and we advise that you should allow $2,500.00 extra for the adjustment and payment of the rates, taxes and charges. HOW MUCH STAMP DUTY WILL I PAY?
Stamp Duty is payable on all property transactions unless an exemption applies such as the First Home Buyers Exemption, a Related Parties Exemption or Pension Concession Exemption. Stamp Duty reductions are available on properties purchased for Primary Residence (to live in) depending on the Purchase Price. If you are purchasing a property to live in, whether you have owned a property previously, you are a first home buyer or you hold a valid pension or concession card which has never previously been used to claim a reduction or exemption, you may be entitled to a Stamp Duty Reduction. Stamp Duty reductions are not available on properties being purchased for investment. In order to calculate the Stamp Duty payable on your transaction, either contact our office or alternatively use the calculators available on the State Revenue Office website. WHAT ARE REGISTRATION FEES AND HOW MUCH ARE THEY?
Registration Fees are fees charged by the Land Titles Office on such documents as the Transfer of Land, Mortgage of Land and Discharge of Mortgage. There are no reductions, concessions or exemptions available on registration fees. In order to calculate the Registration Fees payable on your transaction, either contact our office or alternatively visit the ‘Forms, Fees & Guides’ section of the Land Titles Office website. What does Conveyancing Cost?
The cost of Conveyancing depends on the type of transaction and each Conveyancing Firm will charge a different amount. Due to changes within the industry in the past few years the cost of Conveyancing has increased across the board and you should expect, for both purchases and sales, to pay from around $950.00 up to around $1,500.00 depending on what your Conveyancers fees are.
At JP Conveyancing Works we believe in honesty and transparency. From the moment you speak with our office you will be advised of our fee and any potential additional charges and upon receiving your signed Contract, we provide you with our Cost Disclosure confirming our fee along with any potential additional amount if your transaction is outside of the norm. What is Verification of Identity and why I am required to have my Identity Verified?
The Verification of Identity is a Government requirement that was introduce in November 2015 in which requires all parties entering into a real estate transaction to have their Identity verified in person with an authorised agent such as your Conveyancer or Australia Post. Until the Verification has been completed for each party to the transaction, no document such as a Transfer can be lodged at Land Use Victoria (Titles Office). What is PEXA and why I am required to pay?
PEXA is the Electronic Settlement Platform that is required for the completion of any form of property or title transaction. Paper Settlements can no longer take place unless it is deemed as a ‘Complex’ transaction and cannot physically be completed within PEXA. PEXA itself charge a Settlement Fee within the transactions workspace, which is currently $112.64. This amount does increase if there are multiple titles. The PEXA Settlement fee is not charged by Tailored Conveyancing Services (or any other Conveyancer/Solicitor), it is charged directly from PEXA and is not included in the Conveyancing Fee charged by JP Conveyancing Works. Do I need to Attend Settlement?
No, you do not need to attend Settlement. We arrange and complete Settlement on your behalf via the PEXA Electronic Settlement Platform. Once Settlement has been completed, we will call you to advise that the Settlement has taken place. If you are purchasing an established property, as soon as you receive the call from our office you can collect the keys from the Selling Agent. What is the Digital Duties Form?
The Digital Duties Form is the new form introduced by the State Revenue Office to replace all previous duty related forms such as the Goods Statement, Purchasers Statement, Off the Plan Statutory Declaration, Principal Place of Residence Declaration and so forth. The Digital Duties Form is commenced by the Vendors Representative who fills in the details that would have previously been completed on the Goods Statement. Once the Vendors Representative has completed the Vendor, Contract and Property Details, they send an invite to the Purchasers Representative to enable the Purchasers Details to be completed. Upon receiving the Invite to the Digital Duties Form, the Purchasers Representative completes all Purchaser and Stamp Duty Concession Details as applicable, which would have previously been completed on the Purchaser Statement and Principal Place of Residence Declaration etc. Once the Digital Duties Form has been complete in full by both Representatives, the Vendor and Purchaser each receive an email from the State Revenue Office requesting they review their part of the Form, and if in order, complete and digitally sign. Upon both parties digitally signing the Digital Duties Form, the Settlement Statement is generated enabling the formal assessment of Stamp Duty within the PEXA Workspace. What is Title Insurance
Title insurance is a specialised type of property insurance available to purchasers and home owners. It protects your ownership and use of the property by guarding against certain risks that may cause loss or affect ownership, such as illegal building works, encroachments, zoning non-compliance, non-compliance with Easements and Covenants and other transactional risks such as post-settlement dealing registrations by a third party and fraud. As of 06 April, 2019, Title Insurance on Established Residential Properties has a cost of $439.23 incl. GST per policy for properties under $500,000.00, a cost of $549.05 incl. GST per policy for properties over $500,000.00 but under $750,000,00. The cost of Title Insurance increase as the Purchase Price Increases. Title Insurance on Vacant Land differs to established properties and is a lower amount. Title Insurance on Commercial Properties differs again. Please contact our office for further information. What is a Priority Notice
A Priority Notice is the replacement of a Purchasers Caveat and is notification of an intended dealing or dealings with land. Once recorded, a Priority Notice will prevent registration of any other dealing over the relevant folio (Certificate of Title). A Priority Notice will not prevent recording an instrument that does not require a supporting Certificate of Title (e.g. caveats, warrants and land tax charges), which will still be recorded regardless of a Priority Notice. Should I have a Conveyancer review the Contract prior to submitting an offer?
Prior to you submitting an offer or signing a Contract to purchase a property we strongly recommend that the you have both the Contract of Sale and Section 32 Statement reviewed by your Conveyancer first to ensure that both documents are compliant and there is nothing untoward in either document that may stop you from wanting to purchase the property and also to ensure you understand all restrictions, easements and so forth affecting the Title on the property. When will I receive my funds from my Sale Settlement
Upon Settlement of your Sale, the Surplus Funds due to you from Settlement generally clear into your nominated Account within an hour of Settlement. On some occasions clearance times can vary no different to any other transfer/transaction. When will the Deposit on my Sale be released to me?
The release of deposit monies on your sale prior to Settlement does have to follow a process in accordance with Section 27 of the Sale of Land Act 1962. In accordance with Section 27 of the Sale of Land Act 1962, a Vendor must provide to a Purchaser a ‘Section 27 Statement’ which sets out the details of the mortgage. This Statement is provided to you by the Conveyancer upon the property selling. At JP Conveyancing Works we provide the Section 27 Statement to you upon the preparation of the Vendor Section 32 Statement to enable you to complete and sign the Statement as soon as possible so once the property has sold we can immediately serve the Section 27 Statement on the Purchaser. Upon the Section 27 Statement being served on the Purchaser, the Purchaser is allowed a period of 28 days in which to undertake any searches and lodge any valid objections to the early release of deposit monies. However, if the Purchaser is satisfied with the information provided, the Purchaser can sign the Section 27 Statement allowing the immediate release of deposit monies. Prior to the Purchaser signing the Section 27 Statement, we are also required to obtain from your mortgagee a letter confirming the details set out within the Section 27 Statement, the same of which must be provided to the Purchaser. Should all requirements under Section 27 of the Sale of Land Act 1962 have been satisfied and the 28 days period allowed for the Purchaser to lodge an objection lapsed without the Purchaser first returning the duly signed Section 27 Statement, then the deposit can be released to you regardless. Does JP Conveyancing WORKS Hold Insurance
Yes, JP Conveyancing Works holds Professional Indemnity Insurance of $2 million on any one claim which covers us against civil liability in connection with our work. In addition to our Professional Indemnity Insurance, JP Conveyancing Works also holds Fraud and Cyber Security Insurance of $1 million which covers everything from the funds we hold in Trust on behalf of our clients through to the private and confidential information we hold on file. |