The Law Handbook 2024

Chapter 6.2: Buying or selling a house 561 Fees and charges In addition to the balance of money due at settlement – which is usually the contract price, plus adjustments and plus GST (if applicable), and less the deposit held by the agent – there are also additional fees that need to be accounted for. The buyer must pay: • Land Use Victoria’s search and certificate fees (it is common for a buyer’s conveyancer to pay these fees and then seek reimbursement from the buyer at settlement; this reimbursement is usually identified as a ‘disbursement’ in their tax invoice); • registration fees to Land Use Victoria on all the instruments registered on the title (e.g. a caveat, transfer, and mortgages) – see the calculator here: www.land.vic.gov.au/land-registration/ fees-guides-and-forms/transfer-of-land-fees- calculator; • land transfer duty – the amount of duty is based on the purchase price (for current duty rates, see www.sro.vic.gov.au) ; • the fee to use an electronic conveyancing platform; • their conveyancer’s fee plus GST. These additional fees are usually on top of the balance of money due at settlement. The vendor must pay: • the estate agent’s fee (this is usually deducted from the deposit); • the expenses of the sale (e.g. advertising, marketing), which are usually deducted from the deposit; • the fees for certificates and searches necessary to complete the vendor’s statement; • the fees for discharging a mortgage and withdrawing a caveat, which are necessary to hand over a clear title to the buyer; • the fee to use an electronic conveyancing platform; and • their conveyancer’s fee plus GST. These additional fees for the vendor are usually deducted from the funds due to them at settlement. Any surplus after these fees (e.g. any outgoings on the property such as council rates, water rates, and any loan payouts are deducted) is paid to the vendor. In some instances, the vendor will not have enough money to pay out their loan, and will need to use the deposit funds at settlement. The vendor’s solicitor or conveyancer can organise this with the real estate agent ahead of settlement. Complaints Complaints about estate agents The Business Licensing Authority ( BLA ) (see ‘Contacts’ at the end of this chapter) deals with disputes involving estate agents. The BLA provides advice and handles consumer complaints. The service is free. If the BLA believes that an agent has breached the Estate Agents Act 1980 (Vic) or its regulations, including the professional rules, it can refer the matter to the Disciplinary Tribunal. The tribunal considers whether the agent’s licence should be suspended or cancelled. The tribunal can fine the agent or require undertakings from the agent. Agents can appear at the tribunal without a lawyer, although most are represented. The tribunal cannot order that an agent’s client be reimbursed for a loss caused by an agent’s unprofessional behaviour, but it can order compensation if the complaint concerned taking an excessive commission. Complaints about solicitors and conveyancers Complaints about solicitors are handled under the Legal Profession Uniform Law 2014 (Vic). The legal profession is regulated by a commissioner. (For more information, see Chapter 2.1: Legal representation.) Complaints against licensed conveyancers are handled by the BLA and can end up in VCAT. Vendor and buyer disputes The contract of sale incorporates conditions that apply when there is a dispute between the vendor and the buyer. Disputes about property contracts are settled in the Supreme Court according to the contract’s conditions and terms. Such disputes can be expensive and lengthy and may not achieve the desired outcome. There are alternatives to litigation in the courts. These include taking a dispute to the Law Institute of Victoria’s ( LIV ) Property Law Disputes Resolution Committee, or resolving the dispute through mediation. For more information about options