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Signing a Contract
Conveyancing Resource Centre

Why are there termination fees?

One of the many questions our clients ask is “why am I being charged a termination fee when my matter didn’t settle”. Please note that the minute you engage a conveyancer they begin the arduous process of preparing your matter.

Let us take you through the process of what happens when your contract comes through our doors.

First, our office will receive your contract, whether that be from the real estate agent, our engagement portal or the other side’s solicitor providing our office with a copy.

Second, we then begin the process of breaking down all your critical dates, for example, deposits, finance, building and pest, any special conditions written into the contract and settlement dates.

Third, your contract is then manually entered into our specialised legal software. This means every bit of information that is on your contract of sale must be input into that system.

Fourth, one of our managing solicitors will check your contract to ensure there are no nasty surprises, errors, omissions or otherwise.

Fifth, your conveyancer is then allocated and you are sent an engagement and an initial letter. An initial letter is also sent to the other side, including reviewing ongoing communication between the parties. We will also contact your agent, verify your identity and ensure everything is underway.

Lastly, depending on what stage your conveyance is at and how long it has been going for, the more of a loss we will make in having to handle it up until that point.

All of these steps take considerable time and our termination fee (plus any additional work outside a standard conveyance) is but a fraction of the true cost to us; the imposition of which is to attempt to mitigate that true loss so far as we possibly can. This is because we are a business and must remain commercially viable so that we can continue to offer some of the most affordable conveyancing fees in Queensland.

If your matter were to terminate and you are confused as to why you are receiving a termination invoice, it is because so much work has gone into your matter already. So next time you are questioning a termination fee, remember that we have done so much work and want to continue to help our community whilst balancing the cost involved to do so.

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