Hi all,
Complete noob here, just wanting to see if anyone knows what is involved in legal fees when purchasing a house (in Canberra if that makes a difference). Basically I had a quote for legal fees at $1200 and was told by someone “you can do it yourself, but it is not worth the hassle”.
What exactly does legal fees cover, and can you do it yourself? Perhaps through a DIY legal document or something similar. If possible I would really like to not have to spend that extra $1200.
Thanks
JoeDepending on which State your in $1,200 does sound a bit expensive, unfortunitely I haven't dealt with ACT much so don't know the situation there, perhaps someone else may have more experience with the ACT
In Victoria you would expect a Solicitor to charge around $600 plus disbursements (approx $200) a Conveyancing agent maybe a little cheaper at $400-$500 plus the same for disbursements.
FYI: Disbursements cover the costs of obtaining the relative property certificates i.e. Local Council info on rates and building approvals, Water & Road Authority for potential flood or changes to roads etcYou can DIY in most States however this can be more hassle than whats it worth and if you start off having no idea you can run the risk of missing something important.
I have done my own conveyancing in the past but now couldn't be bothered and thats me with 20+ years experience in Banking Mortgages & Settlements etcI could only suggest that you shop around a little with other solicitors and/or conveyancers
HI MarJac,
Thanks the reply mate. Looks like we should just hire someone else to do the work, discussed with the mrs its not worth potentially missing something important like you have mentioned.
Just one other thing, do you have to pay this fee for every potential house your going to buy.
For example, if I put in an offer to a place which was subsequently rejected, would I have to pay all legal costs because probably before putting in a real offer, I would want all the appropriate documents? Or is the legal costs just done when you finally have put in the offer and its accepted and this is the final step in the process. I just can;t imagine spending this amount for several different potential houses to buy?
Hope I got my point across there.
Cheers
JoeYou don't need to instruct or engage a solicitor or conveyancer until your offer has been accepted so should only pay these legal costs for the property purchase you are proceeding with.
The legal costs are usually paid for at settlement and are often part of the disbursements/settlement funds
Buying a house is a huge expense – if you do it yourself and stuff it up who can you blame? If you get part way through and can't do it then you will need to pay a lawyer to sort it out anyway so why take the risk?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yeah thanks guys, I totally agree and see its worth it now.. Just had to confirm it was worth it, thanks guys.
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