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Government registration fees on settlement

Discussion in 'The Buying & Selling Process' started by FirstTimeBuyer, 15th Jan, 2016.

  1. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    88
    Location:
    Sydney
    Hi forumites!

    I recently settled a property in Brisbane but have a question on government charges that were taken out of my account on the settlement day. This amount was taken out from my offset account amounting to roughly ~$1500. I've been told that its for the transfer, release of mortgage and mortgage registrations.

    Is it normal for these fees + charges to come out on the day of settlement and wacked on as a debit onto your offset account?

    Thanks
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    18th Jun, 2015
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    2,109
    Location:
    Melbourne, Nationwide
    You're expected to pay the settlement costs on the day of settlement. They're often due a few weeks later, but the banks aren't going to settle unless you've got the money on the day.

    How they're debited depends on both the state and what you nominate in your loan documentation. It's quite common now for the various costs to be debited from an account with the bank you're borrowing the money from. You would have nominated this account in the 'Disbursement Authority'.
     
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  3. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    88
    Location:
    Sydney
    Thanks Peter
     
  4. RPI

    RPI Property Lawyer, Town Planner Business Member

    Joined:
    19th Jun, 2015
    Posts:
    714
    Location:
    Brisbane
    Goes on the price of the purchase too. For big ones it gets expensive. $20,000 for a $6.5m property (industrial). Then add stamp duty of $354k and you can see how well the govt does out it.
     
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