Conveyancing Steps for Buying a Property in Queensland
By Luke Martinez
Conveyancing is the process of transferring the legal title of property from one entity to another.
For the most of us, this means buying or selling a home. The process of buying a home can be confusing and we wish to make this process as clear to you as possible. We have explained the entire purchasing process step by step.
Step 1: Making an offer
So you have found a property that you love and can afford. It is now time to approach the Seller or their agent to make an offer.
Generally, a contract is prepared by the real estate agent and presented to the Buyer. It is during this time that you should consider engaging a lawyer to act on your behalf. It is at this point a lawyer can advise on the terms of the contract, your obligations, and whether or not you require any special conditions.
The real estate agent will usually deliver the contract signed by the Buyer to the Seller, who will decide whether or not they accept the Buyer’s offer to purchase.
If they accept the offer, the seller will sign the contract and the conveyancing process will begin.
Step 2: The Deposit
Once the offer has been accepted by the Seller, the Buyer must pay the deposit. The due date for payment of the deposit is specified in each individual contract but generally the deposit will be payable upon the signing of the contract. It is an essential term of the contract that the deposit is paid when due. If the Buyer does not pay the deposit when it is due, the Seller will have rights against them.
Step 3: Fulfil your obligations
Insurance
The terms of the standard contract provide that the property is at the Buyer’s risk from 5:00pm the day after the contract date. It is important to organise appropriate insurance as quickly as possible.
Finance
The residential contract used in Queensland will typically be subject to finance. This means that you will be given a certain amount of time to organise a loan on terms which are satisfactory to you. If you are unsuccessful in obtaining finance on terms satisfactory to you, you will have a right to terminate the contract without losing your deposit.
Building and Pest
Most residential contracts are subject to a satisfactory Building and Pest inspection report as well. If your contract is subject to a Building and Pest inspection then you will have the right to have the property inspected by a licensed building inspector at your own cost who will provide you with a report of their findings. If the report contains significant defects, you will have the right to terminate the contract without losing your deposit.
Remember that it is very important to liaise with a lawyer when fulfilling your obligations under the contract to ensure that your rights are at all times protected.
Transfer duty
Buying property in Queensland is a dutiable transaction, which means that Transfer Duty will be payable. Your lawyer will be able to tell you how much duty is payable on your purchase and whether or not you eligible for any duty concessions or grants. Your lawyer will also facilitate the payment of the transfer duty.
Step 4: preparing for settlement
You have obtained satisfactory finance and you are happy with your Building and Pest report. Your lawyer will liaise with your lender to ensure that sufficient funds are available for settlement.
Your solicitor will calculate any adjustments with respect to outgoings on the property and organise cheques to be drawn by your financier. Under the terms of the standard contract, you will have the right of a final inspection of the property to ensure that the property has remained in the same condition as initially inspected.
Step 5: Settlement
Settlement is the day that the purchase price is paid by the Buyer and the Seller transfers the property free from encumbrances. This is usually done at an agreed location where both parties’ lawyers meet to exchange cheques and documents with each other and the parties’ banks. After settlement has been effected, the transaction is complete.
Let our property lawyers worry about your conveyance while you focus on getting yourself ready for the move into your new property. Call us today on 4771 5664 or email enquiries@cosu.com.au