disbursement definition

The basics of disbursement definition

Buyers are expected to pay disbursement fees during conveyance.  Disbursement fees are costs associated with buying a property. The disbursement definition given above does not include fees charged by solicitors or the actual costs of conveyance. These are different charges that are paid for by the buyer or seller through solicitors. The charges cover the cost of acquiring documents that are necessary for conveyance. These disbursement costs are usually fixed and are much lower than solicitors’ fees and cost of property.

Some disbursements are paid during conveyance while others after completion of sales. Those paid after completion of sales are for facilitation of property registration. The fees during conveyance are mostly for research purposes. Some solicitors include disbursement fees in their quotes. It is important for a buyer to verify whether disbursements are a part of the solicitor’s fees. Other solicitors may ask you to pay a fee just before each research is undertaking. You may also be spared the burden of paying disbursement fees until a conveyance is successfully completed.

Most important disbursement fees

Local Searches

One of the disbursement fees is the Local Search fee. This fee is paid in exchange of information from the Local Council of the district that the property is located. A buyer must know of all state development plans that affect his property. He must know whether a local road is privately or publicly maintained, or whether there is any railway line under his garden. This information is usually recorded in the Local Council offices.

Water and drainage research

The other disbursement fee is the water and drainage research fee. This fee is paid to the water supply and drainage. Water and drainage research elucidate how much water a property gets and how it is drained. The source of water and methods of processing the water are also included in the search. The search reveals property owners responsibility to the water company. Wastes emitted from properties must be handled in specific ways. Information about waste management is one of the results of water and sewerage research.

Land Registry search

Land Registry search fee is another disbursement fee. It is one of the most important disbursement fees. The Land Registry is responsible for keeping a record of all land owners. The Land Registry must record any changes in ownership. A buyer must confirm that the seller is indeed the owner of the property. Sellers usually send buyers a copy of title deed before exchanging contracts. This copy must be reviewed against the record in the office of the Land Registry. Changes in property registration such as the presence of a new mortgage or bankruptcy of the seller affect property ownership. A buyer who proceeds with conveyance despite these changes faces the possibility of disputes over ownership in the future.


The property can only transfer when the seller has properly paid taxes on the property. Also the buyer has to pay taxes such as stamp duty tax for title deed to transfer.

These are the most important disbursement costs. There are many others. Conveyance is studded with disbursement costs. Not all these costs are paid for by one buyer or seller. The amount of cost you are paying for depends on what you are buying or selling. The more complicated conveyance is, the higher the disbursement cost becomes.

It's only fair to share...Share on Facebook
Tweet about this on Twitter
Share on LinkedIn