What are registration fees when buying a house in Qld? Purchasing property in Brisbane or Queensland includes a fee or tax by the Queensland Government on any dutiable transactions. This tax is called Stamp Duty. When does transfer duty apply? A transfer of real property in conveyancing terms is considered any transaction where you sell, buy or transfer property such as land (house, unit or vacant land) or rights to land in Queensland.
What are registration fees when buying a house in Qld? Purchasing property in Brisbane or Queensland includes a fee or tax by the Queensland Government on any dutiable transactions. This tax is called Stamp Duty. When does transfer duty apply? A transfer of real property in conveyancing terms is considered any transaction where you sell, buy or transfer property such as land (house, unit or vacant land) or rights to land in Queensland.
If you’re signing a new house and land REIQ contract during at this time we now advise due to the COVID-19 Pandemic to add to your contract the COVID-19 Special Condition
Your conveyancing may be affected during the COVID-19 Pandemic. Horrocks Solicitors now advises that if you’re buying or selling property in Queensland to review the following:
The current COVID-19 Pandemic situation may mean that the time periods and obligations under the Contract could be impacted by further closures or unavailability of parties (including financiers) which may be outside the control of the parties. Some situations that may arise may not be currently foreseeable.
Longer than usual time periods for finance and building and pest should be considered. Even if you obtain finance approval for your purchase, given the current circumstances, your finance approval could be at risk of being withdrawn prior to settlement. Most financial institutions will reserve the right to withdraw finance approval at any time prior to settlement for any number of reasons. Reasons they may withdraw the approval include if your personal financial circumstances change or the value of the Property is adversely affected. That may cause your financier to decline to provide finance to complete the purchase.In cases where finance is withdrawn, if the Contract is no longer conditional on finance approval, then despite the financier’s failure to provide finance, you would still be obliged to complete the Contract.
If you do not have sufficient funds to pay the balance purchase price (including any adjustments) at settlement the Seller may terminate the Contract or seek to have you specifically perform the Contract and, in both instances, can keep your deposit and claim compensation from you (such as loss on resale which may be significant in the current volatile property market).
In addition to the normal cooling-off considerations, some usual steps like undertaking searches, obtaining independent reports or approvals, signing of documents, receiving vacant possession or other key parts of a conveyance may not be able to be undertaken or may be significantly delayed. You will not have a right to extend the time for conditions or settlement merely because a search or inquiry cannot be undertaken or is delayed.
However, there is no way to completely remove all risks when proceeding in a conveyance during the current COVID-19 Pandemic due to the many uncertainties that arise from it and from the measures being taken in response to it.
It is important to note that as the government response to the COVID-19 Pandemic progressively increases in severity the ability of contracting parties to perform obligations under a contract of sale is becoming increasingly uncertain and unpredictable. While there may be options we can discuss to attempt to manage some of the current legal risks that have arisen in the COVID-19 Pandemic, none of them will provide the same level of certainty that existed before the COVID-19 Pandemic.
If you are concerned about taking these risks, breaching your Contract, potential litigation or unexpected delay in settling, please consider whether you want to proceed as this situation is very difficult to advise on fully as we do not know what may happen in the COVID-19 Pandemic, and there may be things that occur during the current COVID-19 Pandemic that are beyond your control and may affect you financially that cannot be avoided by adding a contract term.
Should either the Seller or the Buyer become incapacitated, in quarantine or otherwise prevented from signing documents or providing purchase money as a result of taking reasonable precautions in relation to the COVID-19 virus; or delivery of a parties documents necessary from the completion of this contract being delayed as a result of transport delays caused by reasonable biosecurity or Government measures being taken in relation to the COVID-19 Virus; or preparation of documents or cheques necessary for the completion of this contract, or attendance at settlement, by a financier, solicitor or settlement agent of either party being delayed as a direct result of the COVID-19 virus, these events will be deemed a delay event in addition to any other delay event in the standard terms and conditions.
If a party is unable to perform any obligation by the due date in the contract due to a delay event:
( a ) Time for the performance of the parties obligation is suspended and ceases to be of the essence of the contract and the parties are deemed not in breach of their obligations;
( b ) An affected party must take reasonable steps to minimised the effect of the delay event on its ability to perform its obligations;
( c )When an affect party is no longer prevented from performing its obligations due to the delay event the affected party must give the other party a Notice For Time to Commence;
( d ) When the suspension period ends, whether notice under ( c ) above of this clause has been given or not, either party may give the other party a Notice For Time to Commence;
( e ) A Notice For Time to Commence must be in writing and state; 1. That the Suspension Period has ended; 2. A date, being not less than 5 nor more than 10 Business days after the date the Notice For Time to Commence is given, which shall become the date the suspended date must be complied with; and 3 that time is of the essence.
( f ) When Notice For Time to Commence is given, time is again of the essence of the contract.
( g ) All subsequent Dates will be extended by the amount of days of the Suspension of Time.
Any Obligation means an Obligation in regards to dates to perform and provide notice in regards to Building and Pest ,Finance, Due Diligence and Settlement.
Subsequent Dates means the dates to perform and provide notice in regard to Building and Pest, Finance , Due Diligence and Settlement.
Suspension of Time means the amount of days between when a date was suspended and when the date when time to Commence starts.
The stamp or transfer duty on multiple dutiable transactions can only be added together to form one arrangement if they are collectively related - this is determined by several factors.
Aggregation or the addition of the duty on dutiable transactions will result in the payment of more stamp duty than if duty was paid separately on each property.
Are they contained in one instrument (e.g. an agreement or a transfer)
Are any of the transactions conditional on entry into, or completion of, any of the other transactions
whether the parties to any of the transactions are the same or are related
the timeframe over which the transactions take place
whether, before the transactions take place, the dutiable properties were used together or dependently by the transferor(s)
whether, after the transactions take place, the dutiable properties are used together or dependently by the transferee(s).
Aggregation of dutiable transactions is compulsory under section 30 of the Duties Act 2001.
If transactions can be aggregated then the transfer duty is calculated on the total consideration or value rather than each dutiable transaction separately. This will be a greater amount of Stamp Duty than if you paid stamp duty separately for each property.
At lodgement for assessment all parties involved must declare the following information:
Their knowledge of
all the dutiable transactions and property included in the arrangement
the dutiable value of each dutiable transaction.
For aggregated transfer duty the total amount payable may be higher than if each transaction were calculated separately and added together.
The transfer duty rate is applied to the added TOTAL value of all related transactions and NOT calculated by applying the rate separately to each transaction.
If you have any questions related to the calculation of your stamp duty in Brisbane or paying Queensland transfer duty contact Horrocks Solicitors today on 07 3013 2300.
Understanding the legal jargon of Conveyancing can be overwhelming at a time when you should be able to celebrate the purchase or sale of your house without the stress of drafting complicated paperwork. If you’ve just signed a new contract, a trusted Conveyancing Solicitor can let you rest assured your settlement contract is completely watertight.
Our boutique team at Horrocks Solicitors is specialised in all matters Conveyancing and we strive to go above with our personalised customer service to ensure that you’re guided through the process of buying or selling property with ease and efficiency.
The ‘subject to finance’ is a standard condition in house and land contracts as it allows the Buyer time to organise a loan with their chosen bank to complete the property purchase. This clause ensures that the Seller can choose to end the contract and not go through with the sale if the Buyer’s loan application is refused by the bank.
Along with other contract conditions the wording of finance clauses are essential to assure the condition is accurate and legally binding. To satisfy a finance clause as approved and obtain satisfactory finance approval the conditions may include:
A. the receipt of a money deposit from the buyer made in payment to the Selling Agent of the property and/or
B. the approval of a loan or mortgage agreement from the bank of the Buyer to provide the full amount of the purchase price for settlement
There are other conditions that can be written into a finance clause but it’s best to talk with a licensed Solicitor to be sure you’re aware of all the important details. At Horrocks Solicitors our friendly paralegals will communicate on your behalf with your financier and the legal representation for the Buyer or Seller of your contract; they will follow the legal protocol to protect your interests and certify correctly if a finance clause has been satisfied.
Once all conditions of your contract are satisfied the contract is termed as now under ‘unconditional acceptance’ which in other words states that the contract is now on track to complete by settlement date without any further conditions to be fulfilled.
Most settlement contracts include a finance approval clause of approximately 14 days however it depends entirely on the Buyer’s requirements to obtain sufficient settlement funds. The following excerpts are provided via www.yourmortage.com.au
‘The time it takes to get a home loan approval can vary widely as there are many parties involved in the application process. In a situation where the buyer has prepared all the documents required, approval can be expected in as little as three to five business days. But more complex situations will, of course, take a bit more time.
Lenders offer different types of pre-approvals, which can range from a simple two-minute online application to a formal document. If possible, you will want to avoid non-formal, non-written applications as they have far fewer guarantees and can come with many unknown conditions that you must meet at a later date.
A pre-approval will only be reliable if it is formal, written and signed by the lender. Securing a formal pre-approval is the only way to make sure you can negotiate with sellers confidently. Without a signed letter, some sellers and real estate agents will not accept your offer, as they cannot guarantee that you will be able to get the necessary finance.
An approval is formal when the lender has everything they need and can confirm in the form of a letter that they are willing to lend you money. This is the final guarantee that you will need for the property purchase. In some instances, they may just ask for additional documents before finalising the approval. This is normal for complex applications or when you have not provided everything they need upfront.
Once your offer has been accepted by a seller, you may have a one to three-week grace period to get your finances and deposit in order. During this time, you can check with your lender and make sure they will honour the agreement. Even if you don’t have this grace period, contact your lender and make sure they will finance your loan.’
If you’re buying a house and need to find a home loan to complete the purchase it's essential to work out what exactly you need from your loan and how much it will cost you in fees. The Money Smart website provided by the Australian Government outlines the types of homeloans available and what you need to think about before you apply for one.
Here’s a quick list of different home loans that you may be interested in:
A definitive guide to the different types of loans and their repayment conditions is available to read here www.moneysmart.gov.au/borrowing-and-credit/home-loans/choosing-a-home-loan
If your parents are able to help you buy a house there are a few different ways to structure a guarantor loan. To start they have the option of using the equity in their own home and with this they can provide security over the entire loan or just a portion. There are many factors to consider with family guarantee home loans and it’s best to talk through all your options with your financier.
The Queensland Housing Finance Loan may be available for Queenslanders who can afford to buy or build a home but cannot get private finance from a bank or building society. This loan can be used to buy an established house, unit, town-house or duplex, or to build a house.
To be eligible for the loan you must:
live in Queensland and be a citizen or permanent resident of Australia
not own or part-own another property
have a household income under $141,000 per annum
intend to live in the home
have a good credit history
have no significant debts
have a regular savings history
have savings to cover the deposit and other costs, such as legal fees, stamp duty and insurance
be able to afford the loan repayments without hardship
have earning potential for the term of the loan.
If you are buying or building a new home, you could be eligible for the Queensland First Home Owners' Grant. The Queensland First Home Owners’ Grant is a Queensland Government initiative to help first home owners to buy their new first home. Read more about how to apply on our FHOG post here.
We’ve compiled our ‘Top Checklist’ for all your Unconditional Finance Approval FAQs but don’t hesitate to contact us today if you’d like a free fixed quote for your new conveyancing contract in Queensland.
If you buy real estate in Queensland you will be required to pay a sum of Land Tax. Land Tax is a State Government Tax and is collected to contribute to Government services and infrastructure in Queensland. You are considered exempt from Land Tax for any land that has a home on it which is used as your principal place of residence.
The amount of land tax payable is calculated using a land valuation of your property with different rates applicable depending on what type of owner you are (Company or Individual).
Land Tax is calculated on the 30th of June each year and applies for the next 12 months. If you are buying real estate property in Queensland, it is important that before you become the owner of the Land that any Land Tax owing on the Land by the Seller is paid before settlement. If the Seller has not paid their land tax previously you as the new owner will become liable to the Queensland Government for payment of the Seller’s Land Tax.
Read more about Land Tax Clearance Certificates here: https://www.qld.gov.au/environment/land/tax/clearance
Be very careful when signing off-the-plan contracts (when the Land is still to be subdivided) as often these contracts make the Buyer responsible for payment of the Seller’s Land Tax on settlement. This Land Tax can be a considerable amount if the Seller already owns a lot of real property.
For more reading on how buying and selling land affects your land tax visit the Queensland Government authority land tax resources page
here: https://www.qld.gov.au/environment/land/tax/changes.
& here: https://www.qld.gov.au/environment/land/tax/overview/about
