What are disbursements?

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When you are buying or selling property, there are a range of legal expenses involved.

One of these expenses is called “disbursements” and it covers activities carried out during the conveyancing process, including:

  • Searches – such as title searches, and obtaining certificates from local councils, electricity, and water authorities
  • Property transfer and mortgage registration
  • Administrative expenses such as mailing, photocopying, and physically attending settlement if that’s necessary
  • Organising building and pest inspections
  • Obtaining documentation like strata reports if necessary

These costs are paid by the law firm to third-party service providers and are typically passed on to the client as part of the overall cost of the legal services.

Professional fees are the charges for the services provided by the law firm’s legal professionals, such as solicitors and paralegals.

Disbursements are separate from professional fees and are noted on your invoice separately.

It’s important to remember that the cost of conveyancing will vary greatly depending on the type of property, the location, and the complexity of the transaction.

It can be a complicated process, and choosing a solicitor or conveyancer based only on their fees can be fraught with danger and it’s best to have an experienced team working for you.

Think of the disbursements as “information gathering”, and your solicitor or conveyancer is simply doing their due diligence, which allows you to make the best-informed choice about your property purchase.

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.

If you have any questions about disbursements or any other aspect of the conveyancing process, our team of property experts are here to help you.

Phone our office on: (07) 3161 9555 or email: info@glglegal.com.au to make an appointment.

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