SOLICITOR'S ROLE

Your solicitor has a duty to ensure the contract of sale is in order before you buy or sell your property.

Solicitors’ duties

The duties of a buyer’s solicitor include:

advising the buyer before the contract is signed about special conditions that are included and the effect of signing the contract. If the buyer receives this advice, the cooling-off right is lost;
checking the contract, and the vendor's statement;
conducting searches and making applications for certificates, and reporting to the buyer. The buyer is expected to examine the property;
exchanging contracts with the seller's solicitor (if a contract of sale is used);
preparing the transfer of land;
advising the buyer about finance and providing all the information that the lender requires about the title to the land;
checking the mortgage documents and advising the buyer;
preparing a statement of adjustments and settlement statement showing how the cheques are drawn and paid;
arranging and attending settlement on the buyer's behalf;
lodging a notice of acquisition of land at the State Revenue Office;
notifying the council and the water authority of the purchase; and
paying stamp duties and lodging documents for registration unless the lender does so.

The duties of a seller’s solicitor include:

preparing a vendor's statement and special clauses to go into the contract;
preparing a contract of sale;
exchanging contracts with the buyer's solicitor;
checking the transfer, statement of adjustments and settlement statement;
preparing the statutory declaration about the value of chattel in the sale;
arranging for discharge of the seller's mortgage and for a clear title;
attending settlement on the seller's behalf; and
notifying the council and the water authority of the sale

Fees and Charges

If you employ a solicitor, the fees and charges may be paid on your behalf and will appear on the solicitor's bill as disbursement. Sometimes, the solicitor will ask the buyer for expenses in advance

The buyer must pay:

Land Registry search fees;
registration fees to the Land Registry on the caveat, transfer, and mortgages;
Stamp duty - charged at high rates based on the purchase price recorded in the transfer.
fees for the certificates, totalling about $150; and
solicitor's costs

The seller must pay:

estate agent's fee (which is usually deducted from the deposit);
expenses of the sale, including advertising expenses;
fees for certificates and searches necessary to prepare the vendor's statement;
solicitor's fees; and
registration fees on discharge of mortgage and withdrawals of caveat necessary to clear the title

For more information on this subject refer to The Law Handbook chapter 14.1.