Who Pays Disbursements in Conveyancing and How Are They Paid?

In conveyancing, disbursements are paid by the client but are initially incurred by the conveyancer on behalf of the client. The process generally works as follows:

1. Initial Payment: For sale matters, an upfront fee is requested to cover initial disbursements such as search fees. The certificates obtained through property searches are required to develop the Contract of Sale.

There is no upfront fee for property purchases.

2. Incurring Disbursements: As the conveyancing process progresses, the conveyancer will incur various disbursements on behalf of the client such as property search fees and fees associated with identity verification.
3. Recovery from Client: Once the disbursements have been paid by the conveyancer, they will be itemised in a final invoice typically issued just prior to settlement. The client is required to reimburse the conveyancing for these disbursements, along with the conveyancer’s professional fees.
4. Payment Method: Disbursements are typically paid by the client to the conveyancer directly as part of settlement at the completion of the property transaction. Generally, funds are transferred to a PEXA account where they are distributed to the relevant parties, including the conveyancer.

While the conveyancer handles the payments of disbursements upfront, the client is ultimately responsible for reimbursing these expenses as part of the overall cost of the conveyancing process.

Contact Red Door Conveyancing on 03 8456 6797 for more information and concerns about conveyancing.