Buying or selling a house

The duties of a buyer’s conveyancer include:

• reviewing and advising on the contract before it is signed and recommending amendments;
• advising on how the property should be owned and on stamp duty treatment;
• conducting a verification of identity;
• liaising with the incoming mortgagee to satisfy their requirements;
• ordering and reviewing the searches and certificates needed for the statement of adjustments and comparing them against the vendor’s statement;
• advising on any section 27 deposit release statement;
• reviewing the GST withholding notice and capital gains tax clearance certificate;
• preparing the Duties Online documentation to enable the buyer’s stamp duty to be assessed a reasonable time before settlement with regard to the type of transaction involved;
• setting up an electronic conveyancing workspace;
• preparing the statement of adjustments;
• calculating what funds are needed for settlement and making sure that these are available from the lender and/or buyer, and directing where funds are to be transferred;
• advising the authorities of the change in ownership.

The duties of a vendor’s conveyancer include:

• taking detailed instructions to enable preparation of the vendor’s statement and contract;
• ordering the searches and certificates needed for the vendor’s statement;
• preparing the vendor’s statement and contract of sale;
• providing the contract to the selling agent;
• conducting a verification of identity;
• preparing a section 27 deposit release statement and agitating for early release of the deposit;
• preparing the GST withholding notice and assisting a vendor to order a capital gains tax clearance certificate from the ATO;
• initiating the Duties Online documentation to enable the buyer’s stamp duty to be assessed a reasonable time before settlement;
• arranging for discharge of the vendor’s mortgages (if applicable);
• reviewing the transfer, statement of adjustments and settlement statement;
• directing the buyer how the sale proceeds are to be applied;
• setting up an electronic conveyancing workspace and coordinating electronic settlement on the vendor’s behalf.

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;
• land transfer duty – the amount of duty is based on the purchase price (current duty rates are available from the State Revenue Office);
• the fee to use the electronic conveyancing platform;
• their conveyancer’s fee plus GST.

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 the electronic conveyancing platform;
• their conveyancer’s fee plus GST.