Property Transfer Costs: Who Pays What?
In property transactions, several costs arise during the transfer process, each borne by different parties. The buyer typically covers the transfer duty, a government tax calculated based on the property's value. This tax must be paid to facilitate the legal transfer of ownership. Additionally, the buyer is responsible for conveyancing fees, which are the fees charged by the conveyancer (a specialized property lawyer) for handling all legal aspects of the property transfer. These include drafting and reviewing contracts, ensuring all paperwork is in order, and registering the property with the relevant authorities. On the seller's side, they are generally responsible for paying the agent's commission, which is the fee agreed upon with the real estate agent for marketing and selling the property. Understanding these financial responsibilities helps both buyers and sellers prepare adequately for the transaction and avoid unexpected costs.