What are the different types of conveyancing costs?
If you are planning to buy a new home you need to hire a good property conveyancer and understand the process in detail and the costs involved. Conveyancing costs are nothing, but different transaction fees associated with the buying and selling of the property. These costs vary depending on the type of property, place of transaction and transferring of legal ownership rights. While buying and going through conveyancing process new home buyers come across many hidden costs on top of the deposit such as admin costs, stamp duty and surveys. These costs are unavoidable and it is always better to understand the estimated cost in advance rather than paying more and regretting later. The conveyancing costs usually includes-
- House Survey-This is a basic survey conducted by the property attorney to verify ownership title of the property in the area. Many Firms and solicitors provide this service free of charge, but some may charge it as an additional cost.
- Stamp Duty-This tax is payable when buying a new property. This tax varies on the entire valuation or the cost of the property. In short it is calculated on the basis of the entire cost paid for the property, which is either 1% or 3 % depending on the amount.
- Valuation Charge-This is also provided free of cost by many conveyancing firms, but again some may charge it as an additional cost. The valuation charges are carried out by the solicitor to check if there are any structural problems with the property and whether it is being sold at current area prices or not.
- Fixture and fitting prices-This is many times included in the sale price, but the buyer can pay for fixtures and fittings differently from the price to avoid paying stamp duty tax.
- Mortgage payment protection insurance-This insurance is designed to provide coverage to the buyer in case if he is unable to earn and pay for his mortgage due to illness or unemployment. Many mortgage lenders will make you sign for this insurance before you buy the property.
- Legal Fees– This is one of the most important part of conveyancing costs. It varies widely depending on the transaction, property and location. They cover various legal factors like property searches, document, title search, filling and registration costs.
- Administrative cost-This includes miscellaneous and incidental expenses like mailing costs, copy costs, etc.
Apart from all these expenses home buyers should be aware of further costs which could come up after moving in new property. For instance any urgent repairs or professional cleaning of the house can add to your entire budget for the process.
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