Professional fees and outlays are different
A professional fee pays for the legal work. Outlays are amounts paid to third parties, such as search providers, PEXA, NSW Land Registry Services, councils or government agencies. A quote should make clear whether the advertised amount includes or excludes those outlays and GST.
Two apparently different quotes may be much closer once the same searches, certificates and electronic settlement charges are included.
Typical purchase work
For a standard purchase, the legal work commonly covers review of one contract, advice on material terms and title issues, ordinary amendment requests, exchange, enquiries, settlement adjustments, lender coordination and one electronic settlement.
Building, pest and strata inspection reports are generally obtained from specialist inspectors and are not ordinarily part of the solicitor’s professional fee.
Typical sale work
A standard sale generally includes preparation of the contract using required disclosure material, dealing with ordinary purchaser enquiries, exchange, discharge coordination, adjustments and settlement. The certificates and searches needed to prepare the contract are usually additional outlays.
When a standard fee may not apply
A fixed fee should define exceptions rather than hide them.
- Off-the-plan, unregistered or company-title property
- Trust, company, SMSF or foreign-purchaser issues
- Multiple unsuccessful contract reviews
- Default, rescission, delayed settlement or disputes
- Complex title, easement or compliance problems
- Related-party and deceased-estate transfers