A property settlement can look straightforward until the final figures arrive. Alongside the purchase price or sale proceeds, there may be search fees, registration charges, council certificates and electronic settlement costs. So, who pays conveyancing disbursements NSW buyers and sellers encounter? Usually, each party pays the disbursements needed for their side of the transaction, but the contract, property type and circumstances can change the outcome.
The practical starting point is this: a conveyancer’s or solicitor’s professional fee pays for their legal work. Disbursements are out-of-pocket expenses paid to government bodies, registries, councils and service providers while the matter is being handled. A clear quote should separate the two so there are no surprises.
Who pays conveyancing disbursements in NSW?
In a standard NSW residential transaction, the purchaser usually pays for the searches, enquiries and registrations required to investigate the property and become its registered owner. The vendor usually pays for the documents needed to prepare a compliant contract for sale and for dealing with their existing mortgage.
That is a useful rule, not an absolute one. The contract for sale can allocate a cost differently, and some costs are shared in the sense that both parties incur their own separate charge. Your legal representative should review the proposed contract before you exchange, rather than relying on a general assumption about what the other side will pay.
| Common cost | Usually paid by | Why it is incurred | | — | — | — | | Contract preparation and vendor disclosure documents | Vendor | The vendor must prepare a contract before marketing and selling the property. | | Purchaser’s property searches and enquiries | Purchaser | The purchaser investigates risks, restrictions and services affecting the property. | | Transfer duty | Purchaser | Duty is generally payable by the buyer before the transfer can be registered. | | Transfer and mortgage registration fees | Purchaser | These register the buyer’s ownership and, where applicable, their new loan. | | Mortgage discharge and release costs | Vendor | These are required to remove the vendor’s existing lender from title. | | Electronic settlement platform fees | Each party, usually | Each side may incur a fee for its own participation in electronic settlement. |
Disbursements a buyer will usually pay
A purchaser’s largest transaction cost is often transfer duty, formerly called stamp duty. It is technically separate from a conveyancing disbursement, but it is commonly included in a settlement budget because it must be dealt with as part of the purchase process. Eligibility for first-home buyer concessions or exemptions can significantly affect the amount, so it is worth obtaining advice early rather than assuming a concession applies.
Buyers also usually pay for searches and certificates that help identify issues with the land. Depending on the property and instructions, these may include title and plan searches, council and water enquiries, planning information, land tax searches, strata records or company title enquiries. Not every search is needed for every matter. A freestanding home, an older strata building, a rural property and a development site each carry different risks.
For example, a buyer considering an investment unit may choose a strata inspection report to check levies, building works, defects, by-laws and disputes. A buyer of land intended for renovation or development may require more detailed planning and zoning advice. These expenses are generally paid by the buyer because they are part of making an informed decision before becoming committed to the property.
The purchaser will also usually pay NSW Land Registry Services fees to register the transfer and, if borrowing, the new mortgage. If the buyer is a foreign person or is purchasing through a particular entity structure, additional approval and surcharge duty issues may arise. Those costs require specific advice and should not be treated as ordinary conveyancing disbursements.
Costs a seller will usually pay
Before a residential property can be offered for sale in NSW, the vendor needs a contract for sale containing prescribed documents. The cost of obtaining the title search, deposited plan, planning certificate and sewer diagram is commonly borne by the vendor. These are often described as contract preparation disbursements and are usually paid at the beginning of the matter.
If the property is mortgaged, the seller is responsible for arranging the lender’s discharge authority and paying the lender’s discharge fee. The seller’s solicitor or conveyancer also needs to obtain a payout figure and ensure the mortgage is released at settlement. Without that release, the buyer cannot receive clear title.
A vendor may also need to obtain strata information, a building certificate, a compliance document or other material where the contract or the property’s circumstances require it. Whether the seller must provide a particular item depends on the property and legal requirements. It is not sensible to use a low headline conveyancing fee as the only comparison point if the likely disbursements have not been explained.
Adjustments are not the same as disbursements
Settlement statements often include council rates, water charges, strata levies and land tax adjustments. These figures can make it appear that one party is paying the other’s bills, but they are generally an adjustment between buyer and seller rather than a disbursement paid to obtain a document or register a dealing.
The usual approach is that the vendor pays charges attributable to the period they owned the property, while the purchaser contributes for the period after settlement. If a quarterly rates notice has already been paid by the vendor, the buyer may reimburse the vendor’s share from settlement onwards. If an amount is overdue, it will usually need to be resolved before or at settlement.
Land tax needs particular care. Its treatment can depend on the contract, the ownership structure, exemptions and whether the property is being sold as a taxable investment. It should be checked as part of the contract review, especially for investment properties, commercial transactions and properties held in trusts or companies.
When the usual split can change
The contract is central. In a private treaty sale, the parties may negotiate special conditions that make one side responsible for a particular certificate, repair, approval or registration cost. At auction, the contract is generally accepted on the stated terms, so purchasers should have it reviewed before bidding.
Off-the-plan purchases can involve different documentation, staged registration and changes to levies or utility arrangements. Commercial property sales may include more extensive due diligence, lease reviews, GST questions and consent requirements. In those matters, the costs are more likely to be negotiated as part of the commercial deal.
A delayed settlement can also create extra charges. Interest, additional lender fees, updated searches or revised settlement figures may arise depending on the reason for the delay and the contract terms. Prompt communication matters because some costs can be avoided if the issue is identified early.
Ask for a clear cost breakdown before you commit
A fixed legal fee can provide useful certainty, but it should always be read alongside the estimated disbursements. Government fees and search costs can change, and the right searches depend on the property. A good quote explains what is included, what is estimated and what may be required only if a particular issue appears.
Before engaging a conveyancer or solicitor, ask four practical questions:
- What is the professional fee, and does it include GST?
- Which disbursements are expected for this property, and what are their estimated amounts?
- Will you seek my authority before ordering optional reports or additional searches?
- Are electronic settlement, identity verification and lender-related charges included or separate?
For buyers, the most valuable money is often spent before exchange, when searches and legal advice can expose a problem while there is still room to negotiate or walk away. For sellers, preparing accurate contract documents early reduces the risk of delay once a buyer is found.
Property transactions involve more than signing a contract and waiting for settlement. Clear advice on fees, disbursements and adjustments lets you make decisions with your eyes open. GKE Lawyers can provide practical NSW conveyancing guidance and a transparent breakdown of likely costs for your particular purchase or sale.
