Transfer Duty
Your first extra expense is transfer or stamp duty. It applies to specific transactions, including property purchases. The transfer duty is one of the larger extra expenses, with an amount determined by several factors related to the property you are purchasing. The good news is that if you are a first-time homeowner, you may qualify for a concession which will lower the amount of the transfer fee. The downside is that the eligibility requirements are very strict.
Building/Pest Inspection
One of the hurdles you will probably encounter when purchasing property is a subject attached to the purchase agreement. One of the most common of these subjects is the requirement for a pest and/or building inspection. The purpose of this is to give you the opportunity to learn what state the property you want to purchase is in. The condition of the property may result in repairs required before the sale can be completed. This protects you from purchasing a property that may cost you more to fix due to a hidden pest or structural problem. The report is prepared by a certified building inspector, who has a fee for this service.
Bank Fees/Charges
Anytime you take out a loan from a financial institution, there are fees. They range in size and may include a valuation fee and an administration fee. Your bank can give you a cost estimate of those fees in advance.
Land Registry Fee
The Land Registry Office will charge a fee to register the change of ownership of the property you purchase. They will also attach a fee to register the mortgage. The fee amount is based on the purchase price of the property.
Adjustments
At settlement, other expenses are apportioned. They usually include utilities, council rates, and body corporate levies, if applicable. As an example, annual rates paid by the seller before putting the home on the market are reimbursed based on the date of purchase within that same year.
Insurance
If you are purchasing property, you should know that the insurance risk is yours starting from the day following the date the contract is signed. This makes home and property insurance a high priority that should be arranged in advance.
Legal Fees
The conveyancing process is not a do-it-yourself project, which is why it is highly recommended to have a lawyer handle that task. Naturally, this will be a fee, but with a lawyer who specialises in conveyancing taking care of this step, you can rest easily knowing it will be done correctly.
Do You Need a Lawyer When Purchasing Property?
While you can easily work your way through the process of purchasing a home with a real estate expert, there is a point where you are further ahead by engaging in the services of a legal professional. The best choice is a law firm with experience in conveyancing. Not only can they protect your rights as the home buyer, but they will ensure all documents are properly filled out and distributed to where they need to go. A lawyer will cost you money, but it is one of your best investments.
Are You Considering Purchasing Property?
Expect to encounter additional costs besides the purchase price. To be sure, contact the conveyancing solicitors in Redcliffe at GKS Law. They can help with all your legal needs during the home buying process, as well as conveyancing services. When you purchase property, ensure all the legal documents are correct by contacting GKS Law today. They provide conveyancing services in Redcliffe.
Conclusion
Getting into the real estate market for the first time, or upgrading to a new property, is going to cost you more than the purchase price of the new home. When you know what these additional fees are and why they are required, you begin to understand the legalities of the single largest purchase you will make in your lifetime. The extra fees are not intended to break you. They are legal requirements, and if you budget in advance, there should be no surprises. To be sure, consult with a conveyancing law firm with experience in this field.