When you’re buying or selling a property, the word disbursements often appears on your final statement. But what exactly are disbursements, and why are they important? At Mosaic Settlements, we’re often asked to explain this part of the process. So, let’s take a closer look at what disbursements involve, what they include, and how they affect your settlement.
What Are Disbursements?
Disbursements are the payments your settlement agent makes on your behalf as part of managing your property transaction. These are necessary costs that relate to transferring ownership, complying with regulations, and ensuring that everything is legally in order.
They may not be the most exciting part of the settlement process, but they are essential for making sure your transaction proceeds smoothly and without any complications.
What Do Disbursements Usually Cover?
In Western Australia, disbursements can vary depending on the property and the contract terms. Some of the most common examples include:
- Title searches to confirm legal ownership and check for Caveats, Mortgages, Notifications and Encumbrances on the property
- Landgate lodgement fees for registering the change of ownership
- Bank cheque or electronic transfer fees related to the transfer of funds
- Local government rate adjustments, to obtain up to date rating information for adjustment at settlement
- Water Corporation settlement fees to obtain up to date rating information for adjustment at settlement
- Strata company certificates often referred to as a S110 Enquiry, where a copy of the levy information and strata insurance details are provided
- Scantek – Verification of identity (VOI) to meet compliance requirements
- Office disbursements, including file handling, document preparation, and data management to ensure compliance and efficiency
- Postage, printing, and petty expenses incurred in the management of the file
Every transaction is unique, so not all disbursements will apply to every settlement. However, your settlement agent will outline any relevant fees in advance so you know what to expect.
Why Are Disbursements Important?
While they may seem like small details, disbursements help keep the settlement process compliant and accurate. For buyers, they help confirm that the property is free from debt or encumbrances. For sellers, they ensure that financial obligations are finalised correctly.
At Mosaic Settlements, we take care of organising and managing all necessary disbursements as part of your service. This means you don’t need to track down certificates, liaise with councils, or organise payments to multiple agencies.
We also provide a clear breakdown of all disbursements in your final settlement statement, with full transparency around where your money is going and why.
How Are Disbursements Calculated?
There is no single figure for disbursement costs. The total amount depends on the location and value of the property, the type of title, and any special conditions in your contract. For example, strata properties often involve additional certificates, while certain regional councils may have different fee structures.
Mosaic Settlements works to ensure all estimates are accurate and communicated clearly. We will also identify any areas where savings or adjustments may be possible, depending on your contract and circumstances.
Need Help Understanding Your Settlement Statement?
Our experienced team is here to ensure your property journey is as straightforward as possible. If you have questions about your disbursements or any other part of your settlement, get in touch with Mosaic Settlements today. We’re here to help you feel informed and supported every step of the way.
