You may be wondering how conveyancing fees are calculated. They are based on the value of your property and vary with each transaction. While this may seem confusing at first, it’s a good idea to understand the fees so you can negotiate with your conveyancing lawyer. This cost is separate from transfer duty, and is clearly stated. Here are some fees that are common:
Conveyancing fees depend on the home’s value
When you’re buying a property, one of the most common questions you’ll likely have is how much the conveyancing fees are. The answer varies depending on the type of transaction, but the average fee is usually around PS100. Disbursements such as surveys can also affect the cost of conveyancing. Before you make an offer on a property, it is important to research all costs, from conveyancing fees to the cost for hiring a removals company.
They are transparent
There was a lot of mystery around the cost of conveyancing until recently. But that is about to change with the introduction of new rules by the Solicitors Regulation Authority. This transparency rule is intended to allow consumers to see exactly what they are paying for their property transfer. A recent survey found that one fifth of consumers felt “trapped” by their solicitor. The new rules are intended to promote competition among law firms, increase access to solicitors and give consumers a better understanding of the costs associated to conveyancing.
When choosing a conveyancing provider, make sure they are regulated by the ARLA Client Money Scheme. Countrywide Principal Services Limited is an appointed representative of ARLA Client Money Scheme and is a member of this scheme. Countrywide is regulated by the ARLA and follows best practice in fee-setting. Further, the company also provides free consultations and 24-hour service. In addition, the company’s website clearly states how much the fees will be.
They are distinct from transfer duty
Transfer duty is the government’s tax on the sale of a property. The conveyancing attorney pays this tax one month before the transfer occurs. It is based on the market value of the property, and the selling price represents this value. If a family is selling the property, the selling price may be understated. The SARS will flag this sale as a family transaction.
Conveyancing costs are variable and do not have a minimum. Fees are usually calculated based on the purchase price or capital value of the bond. Other fees include the preparation of relevant documentation, obtaining cancellation figures, applying for rates clearance certificates, and conducting deed office search searches. Conveyancing fees are generally VAT-compliant and may also include attorney’s fees.