When buying or selling property, there are a range of legal expenses involved. One of these expenses is called “disbursements”, and it covers activities carried out during the conveyancing process, including:

Types of Disbursements

• Searches: This includes title searches and obtaining certificates from local councils, electricity, and water authorities.
• Property Transfer and Mortgage Registration: The costs associated with registering the transfer of ownership and mortgage documents.
• Administrative Expenses: These include mailing, photocopying, and physically attending settlement if necessary.
• Organising Building and Pest Inspections: Fees for arranging inspections to assess the condition of the property.
• Obtaining Documentation: Such as strata reports, if required.

Disbursements vs. Professional Fees

Disbursements are separate from professional fees, which are the charges for the services provided by legal professionals such as solicitors and paralegals. Disbursements are paid by the law firm to third-party service providers and are typically passed on to the client as part of the overall cost of legal services. On your invoice, disbursements will be noted separately from professional fees.

Why Disbursements Are Necessary

The cost of conveyancing can vary greatly depending on the type of property, its location, and the complexity of the transaction. Disbursements are necessary because they cover the costs of the various third parties involved in the transaction. Without these payments, the process would come to a halt. Disbursements essentially cover the “information gathering” that your solicitor or conveyancer conducts during the process. This due diligence allows you to make the most informed choice about your property purchase.

Choosing the Right Team

It’s important to remember that while costs are a factor, choosing a solicitor or conveyancer based solely on their fees can be risky. It’s essential to have an experienced team working for you to ensure the process runs smoothly and your interests are protected.

If you have any questions about disbursements or any other aspect of the conveyancing process, our team of property experts is here to help.

Contact Us

Phone our office on: (07) 3161 9555
Email: info@glglegal.com.au to make an appointment.