Maximum settlement fees increased on Tuesday due to changes by the Department of Commerce. In this article, I’ll go over the main details of the changes.
As per the Settlement Agents (Renumeration) Notice 2013, new maximum fees apply to settlement agents as of October 1.
To put it simply, the Notice has increased the maximum fees that settlement agents can charge by 13.2%.
For example, while a seller of a $300,000 property would previously be charged a maximum of $780.50, they can now be charged a maximum of $856.50. A buyer of the same property could previously be charged $1,179, but can now be charged a maximum of $1,293.
For a $700,000 property, a seller can now be charged $1,362 (previously $1,286.50) and a buyer can now be charged $2,063 (previously $1,949).
How will this affect the real estate and settlement industries? I predict that as a result of this change, the mean settlement fee across WA will probably rise. However, it’s not a drastic change, so these increases will have a low impact on the average buyer or seller.
If you’d like a quote specific to your settlement, please call us on 9459 0044 or get a quote on our website.
Image by Happy Serendipity via Flickr.