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Budgeting for conveyancing: What Purchasers and Vendors in Victoria need to know
Lindel Enticott
Sep 24, 2025 12:26:02 PM
Conveyancing isn’t just about transferring ownership it’s about being financially ready for every step of the journey. Being Prepared means more than just knowing the purchase price or sale figure.
At Prepared, we equip our clients with a complete understanding of what’s ahead. So, whether you’re buying your first home or selling your tenth, here’s what you need to budget for to avoid delays, stress, or last-minute surprises.
For Vendors:
Selling a property involves more than signing contracts and collecting funds. These are the key costs sellers in Victoria need to plan for:
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Agent Commission and Marketing
If you’re using a real estate agent, expect to pay a commission based on the sale price, plus marketing expenses to attract buyers. This includes professional photography, online listings, and auction fees.
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Legal and Conveyancing Fees
From preparing your Contract of Sale to drafting a compliant Section 32 statement, legal guidance isn’t optional. We charge a flat professional fee but deliver precision, because there’s no room for error in your biggest financial move. Searches will be a necessary expense to cover all your mandatory disclosure items and secure a legally binding sale.
You will need to undertake Verification of Identity as part of your conveyancing transaction. The providers and cost (for online identity agents) will depend on your solicitor but are currently $49 for Australia Post.
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Capital Gains Tax (CGT)
Selling an investment property? CGT may apply - speak to your tax professional.
If you’re treated as a foreign tax resident, you will be subject to a CGT withholding payment at settlement, which means a settlement deduction will be remitted to the ATO as settlement. This process requires a settlement payment (as a credit) rather than simply budgeting for a CGT payment during your next tax return. We’ll help you navigate what’s owed and when.
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Outstanding Rates and Taxes
You’ll need to settle any unpaid council rates, land tax, water rates, and owner’s corporation fees before (or at) settlement. Purchasers won’t take on your arrears.
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Mortgage Discharge Fees
Still have a loan on the property? Your bank will charge to discharge your mortgage and you will need to deduct both charges and the loan balance owing.
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PEXA settlement platform
Both Vendors and Purchasers will need to pay Property Exchange Australia (PEXA) a flat fee for settlement. The current 2025 charge is $141 (for a single title settlement) and will be deducted from your sale proceeds.
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Other Potential Costs
Can’t find your Certificate of Title? Need an Owner Builder Defects Report or a compliance certificate for your pool fence? These extras can add up. We anticipate them so you’re not caught off guard.
For Purchasers:
You’re not just buying a home, you’re stepping into a series of legal, financial, and logistical steps. Here’s what purchasers should consider:
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Stamp Duty
For many, this will form the single biggest extra cost. It’s calculated on your purchase price and varies based on your citizenship/residency as well as eligibility for concessions, such as the First Home Buyer or principal place of residence benefits.
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PEXA settlement platform
Both Vendors and Purchasers will need to pay Property Exchange Australia (PEXA) a flat fee for settlement. The current 2025 charge is $141 (for a single title settlement) and will be deducted from your sale proceeds.
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Adjustment of rates and outgoings
Purchasers typically reimburse vendors for their portion of prepaid council rates, water charges, and land tax from settlement date onward. This may involve a lump sum payment, as opposed to paying the annual rates in quarterly or monthly instalments (such arrangements may be available for ongoing years after settlement).
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Legal and conveyancing fees
We will be here to guide you through the entire process. It’s not just about paperwork, it’s about protection. Our fixed professional fees and searches will usually be payable at settlement. Talk to us today for a quote and to discuss timing and budget.
You will need to undertake Verification of Identity as part of your conveyancing transaction. The providers and cost (for online identity agents) will depend on your solicitor but are currently $49 for Australia Post.
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Building & Pest inspection costs
Optional…but to be completely Prepared, they are essential. These inspections help you avoid purchasing a property with hidden structural issues, pest infestations, or non-compliant renovations.
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Land Titles Office registration fees
You’ll need to pay the Land Titles Office to register both the transfer of the property and any mortgage you’re taking out. Purchasers often overlook this smaller charge while focusing on stamp duty.
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Loan establishment and finance costs
Banks love fees. These might include application charges, settlement attendance fees, and even valuation costs. Check your lender’s fee schedule early when considering which loan is right for you.
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Other potential costs
Sometimes the contract includes negotiated items, like repairs, appliance replacements, or agreed inclusions that can carry financial implications. Both parties need to understand what’s been agreed to and who’s paying for what. Prepared can assist with a contract review before you purchase.
The Prepared advantage
When you’re financially prepared, settlement runs smoothly. There’s no scrambling, no stress, and no nasty surprises.
Need a precise estimate tailored to your situation? We’ll map it out clearly, quickly, and without the legal fog.
The information is general in nature and does not constitute legal advice. If you are buying or selling, please contact us to request legal advice.
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