What Are Conveyancing Disbursements

Understanding What are Conveyancer Disbursements

When buying or selling a property, it’s crucial to comprehend the process of conveyancing, including the concept of conveyancer disbursements. These are third-party fees that your conveyancer pays on your behalf during the buying or selling process, usually so things can be sped up and the process can move on seamlessly. Your conveyancer will then later bill you for the costs. Disbursements typically include Land Registry fees, office copy fees, and possibly bankruptcy searches when selling a property. On the buying side, your disbursements typically include Local Authority search fees (water, drainage, and environmental). The cost of this type of disbursement can vary according to location. 

Disbursements When Buying

As a buyer, disbursements are incurred for the additional expenses your conveyancer encounters to facilitate a smooth transaction. These include:

• Search fees, which are essential for investigating local authority, water and drainage, and environmental aspects – vary according to location but are typically upwards of £350. An environmental search looks at whether the land around the property poses environmental risks, water and drainage searches highlight the presence of public drains on your property, and local authority searches will reveal if the property is in a conservation area or subject to any preservation orders. A channel Indemnity Insurance Search will ensure the property is not subject to paying for the upkeep and repairs of the local church
• Land Registry fees – Required for every property transaction in England – From £45
• £45 for properties valued up to £80,000
• £95 for properties worth £80,001 to £100,000
• £230 for properties worth £100,001 to £200,000
• £330 for properties worth £200,001 to £500,000
• £655 for properties worth £500,001 to £1M
• £1,105 for properties worth £1M to £1.001M

• Stamp duty land tax
• Bank transfer fees
• Telegraphic transfer fee (for transfer of funds on completion of the sale i.e. transfer of your deposit) – typically upwards of £25
• Land Registry office copies (to confirm ownership) – typically upwards of £4
• Bankruptcy Search (for mortgage purposes) – typically upwards of £4

Disbursements When Selling

You should expect disbursements to cover various administrative costs when selling your property. These may include:

• Telegraphic transfer fee (for transfer of funds on completion of the sale) – typically upwards of £25
• Land Registry office copies (to confirm ownership) – typically upwards of £4

Additionally, certain transactions may incur extra charges, like indemnity insurance, if required.

When Do I Need to Pay Conveyancing Disbursements?

Understanding the timing of conveyancer disbursement payments is crucial. Typically, these costs are incurred throughout the buying or selling process, but may be payable during the process, such as searches, or at the end of the process, alongside the fees for your conveyancer’s labour, in which case they are settled upon completion (stamp duty). Being aware of these timelines ensures you can manage your budget effectively during the intricate process of property transactions, and your conveyancer should be upfront with you about which charges are payable and when. If in doubt, ask your conveyancer for a breakdown.

In summary, understanding conveyancer disbursements is integral to a transparent and seamless conveyancing process and property transaction. Whether you’re selling or buying, comprehending these fees empowers you to make informed decisions and better navigate the costs of moving home. A good solicitor will always outline the likely disbursements based on the location you are buying your property and your personal situation.