What is Disbursement?
When you instruct a conveyancing solicitor to act on your behalf they will send you a quote, which will contain a list of disbursements.
Disbursements for a commercial property can include:
- Drainage and water search
- Land registry search
- Bankruptcy search
- Land registry transfer fee
- Stamp duty land tax
- Flood risk report
- Environmental search
- Lender’s solicitors fees
So, What Exactly Does Disbursement Mean?
In short disbursements are expenses incurred for a transaction payable to a third party. A solicitor cannot charge you more for disbursement only the fee of the third party.
Why are disbursements required?
As long as you instruct an experienced solicitor who keeps you informed at every stage of the process there is very little that can go wrong. Having said that the results of the searches themselves could produce results that you are not expecting, such as:
- Learning that the building is in a high flood risk area
- is subject to a compulsory purchase order
- is contaminated by industrial chemicals
- or that it has been built on the site of an old tin mine
This is the purpose of the searches. You can then make an educated decision based on these findings.
It is also why it is so important to instruct a professional to act on your behalf, to make sure no nasty surprises arise!
Disbursements when buying property
So, we have learnt that disbursements are an extremely important part of the process of acquiring a property.
Don’t be put off by these extra fee’s that you may not have been expecting, they could save you a lot of money in the long run so ensuring these disbursements are considered is very important cover your due diligence when buying a property.
Save time, save money by contacting a quality solicitor like Kaiser Solicitors.