Guide
Lawyer's fee versus disbursements on a New Zealand conveyance
Updated
Quotes that look wildly different usually differ in what they include, not in what the firm charges. Here is how to read one properly.
The two halves of the bill
The New Zealand Law Society puts it plainly: "In general, a lawyer's bill is in two parts." Professional services, a fee for performing the actual work, and other expenses, which "are fees or other charges the lawyer may incur on your behalf. These are known as disbursements" (Law Society). Confusing the two is where comparison goes wrong: a firm quoting a low fee with disbursements on top can end up dearer than one quoting a single all-inclusive number.
The disbursements are published
Unlike the fee, these are exact. Toitu Te Whenua Land Information New Zealand publishes its Landonline charges, all GST inclusive (LINZ).
| Item | Fee (GST incl) |
|---|---|
| Title search, with or without diagram | $8 |
| Guaranteed title search with pending instruments | $8 |
| Copy of an instrument (mortgage, easement, caveat) | $8 |
| Lodgement and registration of an instrument | $122 |
| Issue of a new record of title | $165 |
The $122 lodgement fee is per instrument, and the instrument codes confirm it applies to a Transfer (code T) and to a Mortgage (code M) alike (LINZ instrument codes). A straightforward purchase with new lending therefore carries $244 of LINZ fees, plus $8 per search. A seller with a mortgage to discharge carries $122 of their own.
The professional fee is not published, by design
There is no conveyancing scale in New Zealand. What there is instead is a set of duties on the firm. Fees "must be fair and reasonable and you must be given information in advance about how fees are to be charged". Many firms bill hourly; many offer a fixed fee, where "the lawyer and client will agree what the client will pay for the work at the start". And crucially: "On request by a client, a lawyer must provide an estimate of fees and inform the client promptly if it becomes apparent that the fee estimate is likely to be exceeded" (Law Society, citing chapter 9 of the Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008).
How to compare two quotes fairly
- Ask for the estimate in writing. You are entitled to one on request, and the engagement letter should record how fees are charged.
- Ask which disbursements are inside the number: LINZ registrations, title searches, the LIM, the bank's fees, any office service or file administration charge.
- Count the LINZ lodgements your deal actually needs. Transfer only, or transfer plus mortgage plus discharge? Each is $122.
- Ask what triggers an extra charge. Unit title disclosures, a delayed settlement, an unregistered dwelling on the LIM and rural water rights all add work.
- Confirm GST treatment, so you are comparing GST inclusive figures on both quotes.
Nothing here is legal advice. Prices for professional work are set by each firm and we publish none: use the form to get real quotes for your transaction.