Buying or selling property involves more than the purchase price. Settlement costs include professional fees, government charges, and adjustments that must be paid or reimbursed on settlement day. Understanding these costs early helps you budget accurately and avoid last-minute surprises in 2026.
Conveyancing and legal fees
Your conveyancer’s professional fee covers contract review, searches, liaison with your lender, preparation of settlement documents, and attendance at settlement. Fees vary based on property type (residential vs commercial), complexity, and whether you are buying, selling, or both. Always request a written quote that separates professional fees from disbursements.
Disbursements and searches
Disbursements are third-party costs paid on your behalf, such as:
- Land registry and title search fees
- Council, water, and authority certificates
- Owners corporation certificates (for units and apartments)
- Electronic settlement (PEXA) fees where applicable
These are generally passed through at cost and listed on your settlement statement.
Stamp duty and government charges
In Victoria, stamp duty (transfer duty) is a significant cost for purchasers. The amount depends on the dutiable value of the property and your eligibility for concessions or exemptions. Additional charges may include registration fees for the transfer and mortgage. Your conveyancer calculates the figures before settlement so you know the exact amount to transfer.
Adjustments on settlement
Rates, levies, and owners corporation fees are adjusted between buyer and seller as at the settlement date. If the seller has prepaid council rates, you reimburse them for the portion after settlement. These adjustments appear on the settlement statement and are not optional extras—they ensure each party pays their fair share.
Hidden costs to watch for
Buyers should also budget for building and pest inspections, loan establishment fees, insurance from settlement, and moving costs. Sellers may pay for marketing, agent commission, and discharge of mortgage fees. Reading your contract’s special conditions clarifies who pays for what if the deal does not proceed.
Planning your budget
Ask your conveyancer for an estimate of total settlement costs early in the matter. Combining purchase price, stamp duty, legal fees, disbursements, and adjustments gives you a realistic cash requirement for settlement day—essential for smooth finance release from your lender.
