Bank Cheque Dispursal Fee

Discussion in 'Property Finance' started by maadha, 23rd Nov, 2012.

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  1. maadha

    maadha On the ladder... Finally.

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    What is the Loan dispursal bank cheque fee?

    Looking at my statement I already have a Loan Disbursal Fee of $60. Then I find another $100 for the Loan dispursal bank cheque fee.

    I realise that there is a fee for using bank cheques but $100 seems excessive. The only thing a can reason is that during settlement I recieved a "settlement adjustment sheet" which listed about 8 parties that required cheques, inlcuding sydney water, the local council, the vendor, 3 different banks and a couple fo others (I assume they are the real estate agents and legals).

    Can anyone shed some light on this?

    Cheers.
     
  2. Rolf Latham

    Rolf Latham Member

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    each chq is between 8 to 12 bucks

    ta
    rolf
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    It's essentially based on the number of cheques your bank needs to write at settlement. They generally quote $60 which is sufficient to allow them to write 4-5 cheques for:

    * Your solicitor/conveyancer
    * Office of State Revenue (stamp duty)
    * Vendors bank
    * Vendor

    Sometimes however, there can be additional cheques that need to be written, especially if there's multiple vendor parties or second mortgages, or other interested parties, such as council and water rates owing as you've described.

    You'll usually sign a 'dispersement authority' as part of your loan documents which authorises the bank to pay these costs on your behalf. You could of course refuse to sign that document, but the bank doesn't want to get into an argument with the OSR or council, so they're refuse to settle until you sign it.

    The loan offer documents also desribe the fee per bank cheque written.
     
    Last edited: 23rd Nov, 2012
  4. maadha

    maadha On the ladder... Finally.

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    Thanks Rolf and Peter.