Buying Properties

The Process

1. Funding / Finance
   If you are thinking about purchasing a real property in Queensland, the first step is to think about funding. This is particularly important if you need to apply for finance to fund your purchase. Obtaining a finance pre-approval before committing to purchase will give you an idea of how much purchasing power you have and will, in most cases, speed up the finance application process down the track.

2. Physical Inspection and investigation
   Once you know how much you can afford, you can start property-hunting. If you are buying an established property, physical inspection of the property is critical because, although a standard contract would allow a buyer to withdraw from purchase if significant damage is found a contract is signed, the contract does require the Buyer to act reasonably. Find out as much information about the property as possible as it would help you decide whether the property is suitable for you. You can even engage a solicitor to order various searches for you before you even sign a contract to purchase.

3. Sign a contract
   Give an offer to purchase the property that you have your eyes on. The offer will be sent to the seller (via the real estate agent) and once the seller accepts the offer, there is a binding contract. In Queensland, a lot of inexperience buyers sign the contract at the “offer” stage, not being aware that once the document is counter-signed by the seller, the document would become a binding contract. So take extra care when you fill in the details for your “offer”, because changes down the track may be difficult and costly. It is recommended that you seek legal advice before you sign the “offer”. You will be asked to pay a deposit at the same time when you sign the document. If you have not engaged a solicitor earlier, you should engage one from the moment a contract is signed.

4. Building and Pest Inspections and Pool Inspection
   Some contracts are subject to the buyer obtaining satisfactory results for their building and pest inspections and pool inspection. These inspections are typically carried out by professionals who would provide you with a written report of the condition of the property. If your contract is subject to due diligence investigations, you may also arrange for same to be done at the same time.

5. Finalise finance application
   You should attend to finalising your finance application without delay once the contract is signed. Typically major banks can settle in 2 to 3 weeks after a finance approval is granted and loan documents signed.

6. Arrange for Insurance
   Once a contract for the purchase of a property is signed, the risks of the property passes on to the buyer at 5pm on the business day after the contract date. This means even if the property is completely destroyed in an accident, you are still obliged to complete the purchase and pay the full amount to the seller. This is why you will need to arrange for insurance cover as soon as a contract is signed.

7. Pre-settlement Inspection
   If all goes well with the purchase, your contract would become unconditional. You will have a final chance to inspect the property right before settlement, to ensure that the condition of the property is the same as when you signed the contract to purchase it.

8. Settlement
   At settlement, you pay the full balance amount to the seller in exchange for ownership of the property. Your solicitors and financiers will attend settlement on your behalf. Once settlement is completed, you can use the property as your own after settlement unless agreed otherwise.

9. Stamp duty and other government fees
   Payment of stamp duty and other government fees are to be made at the time of settlement (or in some cases, earlier).

Cooling Off Period

Your rights under the cooling off period

Under the Property Occupations Act 2014 you are entitled to a five (5) business day cooling off period from the date when you or us receive the signed Contract. During the cooling off period, you are entitled to terminate the contract. If you terminate the contract during the cooling off period, you may be charged a termination penalty of 0.25% of the purchase price.

Valuation during cooling off period

We strongly recommend that you obtain an independent valuation of the property. The contract provides that the Seller must allow you access to the property once prior to settlement for the purpose of valuing the property, however, to enable you to utilise the cooling off period you will need to value the property immediately (if you choose to do so), that is, prior to expiry of the cooling off period.

Stamp Duty

Stamp duty (formally known as Transfer Duty) is a state tax payable on your contract.

If you purchase the property in your own name and will be using the property as your principal place of residence (your daily home), you may be eligible for concessions. You can test your availablity on the Queensland Government website here. You can get an estimation of the stamp duty amount here.

Electronic Conveyancing