Conveyancing disbursements explained — the third-party costs that sit on top of your conveyancer's fee in Victoria

In this guide(14 sections)

If you've been quoted a conveyancing fee and then seen the word "disbursements" tacked on underneath, you've probably wondered what they actually are — and whether you're being charged twice. You're not. Disbursements are simply the real, third-party costs of doing your conveyancing: the searches, certificates and settlement fees that someone has to pay to government bodies and authorities. Here's exactly what each one is, roughly what it costs, and how a reputable firm handles them.

At a glance — typical Victorian conveyancing disbursements

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Conveyancing disbursements are the out-of-pocket, third-party costs your conveyancer pays on your behalf to complete a property transaction — things like title searches, council and water certificates, an owners corporation certificate, verification of identity, the PEXA settlement fee and Land Use Victoria lodgement fees. They are separate from the conveyancer's professional fee and separate again from stamp duty, and reputable firms pass them on at cost with no markup.

This guide is strictly about what those disbursements are and what they cost. For the professional fee itself — what online conveyancers, mid-tier firms and senior-lawyer review actually charge — see our Conveyancing fees Melbourne guide.

What is a disbursement, exactly?

A disbursement is a payment your conveyancer or solicitor makes to a third party on your behalf, then passes on to you at cost. It isn't payment for their time or expertise — that's the professional fee. It's the literal money that has to change hands with government registries, councils, water authorities, the owners corporation manager and the electronic settlement platform to get your transaction done.

Three quick distinctions worth holding onto:

• The professional fee is what you pay the conveyancer for doing the work — reviewing the Section 32, ordering the searches, attending settlement.
• Disbursements are the third-party costs they incur while doing that work.
• Stamp duty is a State tax paid to the State Revenue Office, and it dwarfs both — see the section below.

Good firms itemise disbursements separately and at cost. If a firm bundles "disbursements" into a single vague figure or marks them up, ask why.

Title search (Register Search Statement)

Every transaction starts with a title search. The Register Search Statement confirms who the registered proprietor is and what's recorded against the title — mortgages, caveats, easements and restrictive covenants. It's the foundation document, and it's pulled from Land Use Victoria's register. A title search typically costs $10–$40. A matching plan of subdivision search (the registered plan showing the lot boundaries) is similar.

Council Land Information Certificate

The Land Information Certificate is issued by the local council and discloses the council rates, charges and any other amounts owing on the property, along with valuation and certain notices. Costs vary council by council — typically $25–$70. This is one of the certificates that feeds into the adjustment of rates at settlement, so the buyer and seller each pay their share of the year's rates up to the settlement date.

Water Information Statement

The Water Information Statement comes from the relevant water authority (for example Yarra Valley Water, South East Water or City West Water, depending on the property's location) and shows water and sewerage rates owing. It typically costs $40–$60. Like council rates, water charges are adjusted between buyer and seller at settlement.

Owners Corporation Certificate (Form 23)

If the property is part of an owners corporation — most apartments, units and townhouses — an Owners Corporation Certificate (Form 23) is required. Issued under the Owners Corporations Act 2006 (Vic), it discloses the OC fees, the balance of the maintenance and administrative funds, any current or proposed special levies, insurance details and whether there's any litigation on foot. The Form 23 typically costs $150–$200. On a sale it's usually the seller who orders and pays for it as part of preparing the Section 32 vendor statement, but buyers frequently want their own up-to-date certificate too.

Land tax certificate

A land tax certificate (a property clearance certificate from the State Revenue Office) confirms whether any land tax is owing on the property, which matters because land tax can attach to the land itself. It typically costs $25–$60. For an owner-occupied home there's usually no land tax, but the certificate still confirms the position cleanly.

Verification of Identity (VOI)

Verification of Identity is a requirement for electronic conveyancing — your conveyancer must confirm you are who you say you are before transferring title in your name, which protects everyone against fraud. Many firms absorb VOI into their fee or do it in-house at no extra cost; where a third-party identity agent (such as Australia Post) is used, it can cost up to about $50 per person.

PEXA settlement fee

Almost all Victorian property settlements now happen electronically through PEXA (Property Exchange Australia), the national electronic settlement platform. There's no paper, no cheques and no physical settlement room — funds and the transfer of title are exchanged online. PEXA charges a per-transaction fee, typically around $115–$130, which is passed through to you at cost. Both sides of the transaction usually carry a PEXA fee. You can read more on our PEXA electronic settlements page.

Land Use Victoria lodgement and registration fees

To actually register the change of ownership, the transfer of land (and any new mortgage) must be lodged with Land Use Victoria. These are statutory registration fees, set by regulation, and they scale with the property value — they can range from modest amounts to several hundred dollars on a higher-value transfer. Because they're set by government and tied to the price, your conveyancer can only give you a precise figure once the purchase price is known, but they are always passed on at cost.

A worked example — a typical Melbourne apartment purchase

Here's roughly how the disbursements stack up for a buyer purchasing an established apartment in an owners corporation. Figures are illustrative and will vary by council, water authority and property value.

To that, the buyer adds the conveyancer's professional fee (a separate line) and stamp duty paid to the State Revenue Office (by far the largest single number). Keeping these three buckets separate is the whole point — it's how you can see at a glance what's going to a government body, what's a third-party search cost, and what is the fee for the legal work.

Charged at cost — and why that matters

At Fogarty Oliver Rothschild, disbursements are charged at cost with no markup. The figures above are what the searches and certificates genuinely cost, passed straight through. Some firms quietly mark up disbursements as a hidden source of revenue, so it's a fair question to ask any conveyancer directly: "Do you charge disbursements at cost, or do you add a margin?" A clear, itemised answer is a good sign.

The first 15 minutes are free, with no obligation. Send us your contract or Section 32 and we'll give you a clear fixed-fee quote with the disbursements itemised at cost — so you know the full picture before you commit. Book a free 15-minute consultation → or call 03 4328 5084.

Frequently asked questions

What are conveyancing disbursements in Victoria?

Disbursements are the out-of-pocket, third-party costs your conveyancer pays on your behalf to complete a property transaction — title searches, the council Land Information Certificate, the Water Information Statement, an owners corporation (Form 23) certificate where relevant, verification of identity, the PEXA settlement fee, and Land Use Victoria lodgement fees. They're separate from the professional fee and from stamp duty, and reputable firms pass them on at cost. Typical total: $200–$600.

What's the difference between disbursements and stamp duty?

They're completely different things. Disbursements are small third-party search, certificate and settlement costs (typically $200–$600 in total) that your conveyancer pays to registries, councils, water authorities and PEXA. Stamp duty (land transfer duty) is a State tax under the Duties Act 2000 (Vic), paid to the State Revenue Office, calculated on the purchase price — often tens of thousands of dollars on a typical home. Stamp duty is by far the largest cost; disbursements are a minor line by comparison.

Are disbursements part of the conveyancing fee or separate?

Separate. The conveyancing fee is what you pay for the professional work. Disbursements are the genuine third-party costs incurred while doing that work. A transparent quote lists them as a distinct line, at cost.

How much are conveyancing disbursements in Victoria?

For a typical residential purchase, total disbursements usually fall between $200 and $600, depending on the property, the council, the water authority, whether there's an owners corporation, and the registration fees tied to the purchase price. Apartments tend to sit at the higher end because of the Form 23 owners corporation certificate.

Do reputable firms mark up disbursements?

They shouldn't. Best practice is to charge disbursements at cost with no markup, itemised so you can see exactly what each search and certificate cost. Some firms do add a margin, so it's worth asking directly whether yours charges at cost. At Fogarty Oliver Rothschild, disbursements are always passed on at cost.

Does the buyer or the seller pay for disbursements?

Both sides incur their own disbursements. A seller pays for the searches and certificates needed to prepare the Section 32 vendor statement (including the Form 23 where strata). A buyer pays for their own title and rates searches, their VOI, the PEXA fee and the Land Use Victoria registration fees. Rates and water charges themselves are then adjusted between the parties at settlement.

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General information only, not legal advice. Disbursement costs are indicative and vary by property, council, water authority and purchase price; confirm current figures for your specific matter.

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