As anyone who has gone through the process of buying or selling a property knows, conveyancing can be a complex and confusing process. There are many different terms and fees that you need to be aware of, and one of these is disbursements. In this article, we'll explain exactly what disbursements are, why they are necessary, and how to manage them effectively.

What Are Disbursements in Conveyancing?

In a nutshell, disbursements are costs that are incurred as part of the conveyancing process, but which are not included in the conveyancer's fee. These are costs that are paid to third parties, such as government agencies, for services related to the property transaction. Some common examples of disbursements in conveyancing include:

Title search fees: These are fees that are paid to the relevant government agency to search the property's title and ensure that it is free of any encumbrances or defects.

Registration fees: These are fees that are paid to register the transfer of the property's title from the seller to the buyer.

Certificate fees: These are fees that are paid to obtain any necessary certificates or documents, such as rates enquiries or strata reports.

Why Are Disbursements Necessary in Conveyancing?

Disbursements are a necessary part of the conveyancing process because they cover the costs of the various third parties who are involved in the transaction. Without disbursements, these parties would not be compensated for their services, and the conveyancing process would come to a halt.

Who Pays for Disbursements in Conveyancing?

As a general rule, disbursements are paid for by the buyer of the property. This is because the buyer is the party who is ultimately responsible for ensuring that all necessary parties are paid for their services, and that the transfer of the property's title is properly registered.

However, there are some cases where the seller may be responsible for certain disbursements. For example, if the seller has agreed to pay for a building inspection as part of the sale agreement, they would be responsible for the associated disbursement fee.

How Are Disbursements Calculated in Conveyancing?

The amount of disbursements in a conveyancing transaction can vary significantly depending on the specific property, location and property type. 

It's important to get a breakdown of all expected disbursements from your conveyancer upfront, so that you have a clear understanding of what you will be responsible for paying.

What Are Disbursements in Conveyancing: The Conclusion

Disbursements are an important aspect of the conveyancing process, and it's essential to have a clear understanding of what they are and how they work. By getting a breakdown of all expected disbursements upfront you can help manage your disbursement costs effectively and ensure a smooth conveyancing process.

If you have any questions about disbursements in conveyancing, or if you need help with any other aspect of the process, don't hesitate to get in touch. Our team of expert conveyancers is here to help walk you home.