4 Facts About Conveyancing Fees: Who Picks up the Bill?
Friday, April 19, 2019, 6:00 PM | Leave Comment
The process of buying and selling a home may not be as simple as it sounds.
There are a lot of considerations and obligations that must be adhered to by both the seller and the buyer. One of which has to do with the conveyancing fees.
A lot of buyers and sellers are finding it hard to understand how these fees are calculated and who picks up the bill.
Perhaps learning about some of the conveyancing fee facts can help you make informed decisions when buying or selling your property, right?
Well, please read on for some of the facts about conveyancing fees.
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Conveyancing Fee Vary Based on the Jurisdiction
The amount of conveyance you’re to pay varies from one jurisdiction to another. Different states and municipalities have different rules and requirements that are worth noting. For instance, the fee is a flat rate in some jurisdictions while in others, it increases with the increase in the sale price of the property being transferred. But must you use an agent when selling your home? Absolutely not.
There are some platforms that can buy your house directly, saving you the need to pay for commission or transaction fees. At Texas Fair Offers, for instance, we buy houses for cash directly from you.
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Conveyancing Fees Vary Based on Value and Type of Property
In some instances, the conveyance fees vary depending on the value of the property being transferred. For instance, if the value of the property being transferred is $1 million, you can a state where the rate is constant up to a certain amount say $700,000 and increases for any amount exceeding this threshold ($300,000).
The seller may be also required to pay other fees such as the municipal conveyance tax, on top of what they’ve already paid. The fee can also vary depending on the type of property – residential, nonresidential or a land.
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Who Pays for Conveyancing Fees?
The seller has been the one to pay the fee traditionally but this varies from one state to another. In some states, it’s the obligation of the seller to pay the fees, but the obligation goes to the buyer should the seller be exempted.
In some states also, the buyer is expected to pay a particular percentage if the property exceeds a certain amount say $1 million. However, the obligation will pass to the seller if they (buyer) cannot meet. Some states require both the seller and the buyer to pay the conveyance fee.
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What if the Seller and Buyer Agree on Payment?
Well, there are instances where the seller offers to pay the conveyancing fees all by himself perhaps to sweeten the deal, a process known as seller concession.
The buyer may also request for concession during the negotiation and home inspection, especially if there’s an issue that you may not be able to take care of for some reason. However, you should consult your real estate agent to advise you if this action will be worth it and won’t differ with your goals.
Conclusion
It’s very important to have a clear understanding of the conveyancing fees you’re to pay when buying or selling a home. This guide provides some of the facts that can help you follow the right criteria approved by state and municipal law when buying or selling your home. It’s important to note that both the buyer and the seller are required to pay the fees regardless of their lifestyles unless they mutually agree otherwise.
You can also decide to sell your home to a company that buys houses directly. Good luck!
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