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.
The Conveyancing process in Queensland can be a lengthy and complicated procedure that requires in depth knowledge and professional legal guidance. As it requires the time and expert information to navigate this step by step process we recommend you engage a conveyancing solicitor from the moment you are ready to sign a contract. With the right legal advice and management you can rest easy with the trust that your conveyance is in the right hands.
At Horrocks Solicitors we offer friendly and dedicated conveyancing services to ensure your settlement is easy and without the confusion or stress if any complications should arise when purchasing or selling your property.
Have you signed a house and land contract to purchase in Queensland but are unsure if you can terminate the contract before settlement? Buying a property in Queensland can often easily become a complicated legal process. Horrocks Solicitors have been helping Queenslanders settle their conveyances for over 30 years and are legal conveyancing experts in Brisbane, the Gold Coast and Greater Area. When it comes to contract termination it is strongly advised to contact a conveyancing solicitor to help you through the legal process to avoid any significant mistakes and financial consequences.
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.
With auctions and house inspections currently banned in Australia the real estate market has had to adapt to the strict COVID-19 measures by relying on new virtual auction apps and websites such as Gavl.
Whilst some Buyers have been deterred by the uncertainty of the times or are choosing instead to buy and sell property via private sales, there has been a growing number of potential Buyers in Brisbane switching to the new model of livestreamed auctions.
Buying and selling a house or land through a private sale can be risky and it’s important to ensure that you conduct appropriate market research within the local area to compare the purchase price in addition to contacting a conveyancing solicitor to review your contract terms before you sign.
New digital platforms and smartphone technology have enabled auctions to be livestreamed via the internet whereby potential Buyers make their bids in real time in a virtual auction room without the need to be physically present.
The signing of the REIQ contract can be executed digitally using DocuSign and is facilitated by the company.
If you’re considering buying or selling at this time in Queensland we recommend that you read our Important Conveyancing Update for the COVID-19 Special Conditions that should be added to your REIQ contract.
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.
With the new year underway prospective home buyers and sellers have turned their attention to the Brisbane property markets for the potential of an upturn in house prices throughout 2020.
Despite Brisbane property values declining by -0.6 per cent (the detached housing sector) in June 2019 there is hope yet that a boom will return with analysts predicting a strong comeback for Brisbane over the next 3 years. The end of December finished with a 0.7 per cent change in home values resulting in an overall annual value increase of 0.3 per cent in Brisbane City for 2019.
(Source: realestate.com)
According to market analysts there are a few influences that will affect the housing market in 2020:
an interest rate cut by April from the Reserve Bank
relaxed credit restrictions allowing banks to offer more property purchasers access to a mortgage
the new ‘Comprehensive Credit Reporting’ system
the ‘First Home Loan Deposit Scheme’ implemented since January 1, 2020.
The new scheme will mean eligible first home buyers only need a 5% deposit saved to be able to borrow up to 95% of the purchase price of the property without needing to pay Lender’s Mortgage Insurance (LMI).
Eligibility criteria
Those applying for the loans will need to meet eligibility criteria.
Applicants must:
Earn under $125,000 a year for singles and $200,000 for couples
Intend to live in the home (investment properties aren't supported)
Not have owned or had a share in property previously.
Managing Director of SQM Research Louis Christopher has predicted the following property price forecasts for 2020 and specifically with ‘record low interest rates and cheap credit an increase in Brisbane home prices by up to 7%’
Source: www.abc.net.au/news/2019-11-14/property-prices-in-2020-sqm-forecasts/11703668
Queensland in comparison to NSW and VIC is often held back by the economy and jobs growth but it has the advantage of relative affordability and higher vacancy rates. With the arrival of further rate cuts and eased lending conditions Brisbane is primed to see price growth for the first half of 2020.
Source: www.realestate.com.au/news/boom-time-forecast-for-brisbanes-housing-market-in-2020/
If you’re in the market for selling or buying property contact our dedicated team at Horrocks Solicitors to receive a competitive fixed quote today for conveyancing services from Queensland’s best.
If you’ve just signed a new contract for the purchase of a house or property in Queensland it’s essential to know as you are signing when you will become responsible for the loss or any damage to the property.
With the ongoing bushfire crisis across Australia where already close to 612 homes have been destroyed we strongly advise that you immediately find out by talking to your conveyancing solicitor.
Generally most house and land contracts will transfer the responsibility of insurance of the property from 5.00 pm the day after the contract date (the date when the Seller and the Buyer have both signed the contract). This is often 30 days or longer before the day of settlement (when the property is transferred into the Buyer’s possession.)
You run the risk of serious financial loss if the property is damaged or destroyed after you have entered into the legally binding House and Land Contract. With increasing annual temperatures and longer fire seasons each year in Australia purchasing insurance has now become a crucial decision for all new house and land buyers in Queensland.
“There have been many serious floods, fires, cyclones and storms in Australia over the last decade and many people have found out too late that they did not have enough insurance cover on their home and contents. This can be extremely costly and stressful, if you lose your home. Wherever you live, your home and contents insurance cover should be enough to cover the cost of rebuilding your home and replacing your contents.”
We advise that you compare insurance contracts with different companies and also to make sure you do your research well by comparing the terms. In addition it’s possible there may not be a great difference in price to increase the cost of insurance to cover rebuilding in the case of fire or natural disasters. Better to be safe than sorry!
If you have just signed a new contract for buying property in the greater Brisbane area contact Horrocks Solicitors to review your obligations and confirm when you are liable for the insurance of your new property on 07 3013 2300.
The First Home Loan Deposit Scheme (‘FHLDS’) was announced during the recent Federal election.
The new rules will provide that first-time buyers need only save a 5% deposit when they purchase a new property. Currently most banks and financiers require a 20% deposit before they will consider providing finance for the purchase of a residential property.
The FHLDS will guarantee loans through the National Housing Finance and Investment Corporation.
Not only will it mean that First Home Buyers do not have to save more for the deposit but they may avoid having to pay for mortgage insurance which is often thousands of dollars.
The new policy is due to come into effect from 1 January 2020.
To be eligible individuals cannot be earning more than $125,000 per year or for couples, more than $200,000 per year.
However, the scheme is only available for the first 10,000 first home buyers.
The FHSS (First Home Super Saver Scheme) scheme was introduced by the Australian Government in the Federal – Budget 2017-18 to reduce pressure on housing affordability.
From 1 July 2017 you may make voluntary contributions into your superannuation fund to save for your first home.
After 1 July 2018 you can apply for the release of your voluntary contributions along with any earnings from the investment of these contributions to go towards the purchase price of your first home.
To be eligible to make use of the FHSS scheme it is required for you to live in the property that you purchase for at least 6 months immediately within the first 12 months after settlement. The house or unit cannot be an investment property that you plan to rent out.
If you plan to use the scheme then you need to apply for and receive confirmation before you sign a contract to buy. It also must be your first home.
Once you receive consent to apply the scheme you can then sign your contract and afterwards apply for release of your FHSS amounts. However be it’s important to know that it may take between 15 and 25 business days to receive the FHSS funds. Therefore, it is essential that before you sign your contract that you: have confirmation and that you make sure that you have a lengthy settlement date if you need the FHSS funds to pay to the Seller on settlement day.
You have 12 months from the date you make a valid request for release of your FHSS amounts, to do one of the following:
sign a contract to purchase or construct your home – and give notice within 28 days that you have signed the contract
recontribute the assessable FHSS amount (less tax withheld) into your super fund – and you must give notice within 12 months of the release request date that you have recontributed
If you don't give notice that you have done one of the above or you choose to keep the FHSS money, you will be subject to the FHSS tax. This is a flat tax equal to 20% of your assessable FHSS released amounts. This may not be the same as the total amount released.
If you have any questions regarding your requirements for the Australian Taxation Office and the First Home Loan Deposit Scheme in Queensland contact the Horrocks Solicitors team today at 07 3013 2300
You can start making super contributions from any age. However, you must be 18 years old or older to request a determination or a release of amounts under the FHSS scheme.
Also, you must have:
never owned property in Australia – this includes an investment property, vacant land, commercial property, a lease of land in Australia, or a company title interest in land in Australia (unless the Commissioner of Taxation determines that you have suffered a financial hardship)
not previously requested the Commissioner to issue a FHSS release authority in relation to the scheme.
Eligibility is assessed on an individual basis. This means that couples, siblings or friends can each access their own eligible FHSS contributions to purchase the same property. If any of you have previously owned a home, it will not stop anyone else who is eligible from applying.
You may still be eligible even if you have previously owned property in Australia, if it is determined that you have suffered a financial hardship that results in a loss of ownership of your property interests. The types of events that could result in the loss of property interests include:
bankruptcy
divorce, separation from a de-facto partner, or a relationship breakdown
loss of employment
illness
being affected by a natural disaster
being eligible for early access to superannuation.
If you want to be considered under the financial hardship provision you can apply with either:
ATO online using your myGov account linked to the Australian Tax Office
or by completing a First Home Super Saver scheme Hardship Application Form.
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
People often ask whether the conveyancing process is necessary when gifting a property to a family member or third party. In addition there is also the question of stamp duty…
CONVEYANCING
The conveyancing of a property to be given away or gifted is straight forward and this thus named "Transfer" is a regular conveyancing practice. A standard fee applies. The only other normal cost of the conveyancing will then be the two title searches. A title search is conducted at the start of the process, and also one on the day of settlement.
It is necessary for the Solicitor to prepare and sign the standard titles forms. If there are mortgages held by the Bank, it will also be required to organise settlement with the corresponding Bank.
STAMP DUTY
Stamp Duty is payable to the Queensland Government in all property transfers unless there is
(i) a concession for first principal place of residence or
(ii) a transfer by one partner of a relationship to give the other person partner a 1/2 share or
(iii) in a relationship breakdown where there is a Binding Financial Agreement or Orders from the Family Court.
If you have any questions about your eligibility for these concessions, we can provide legal advice by phone or email by calling 07 3013 2300 or via our contact form.
Where stamp duty is payable it is calculated on the market value of the property.
The market value is determined by either
1. A valuation from a registered valuer or
2. Obtaining a Letter of Appraisal from a Real Estate Agent. The Letter states the market value, confirming it with the address of 3 recent comparable sales in the area.
For more information about gifting and transferring a property in the state of Queensland contact Horrocks Solicitors. Every conveyancing settlement is different and the specifics of your contract will be handled by one of our highly qualified staff ensuring you get settlement success.
For more about Conveyancing Brisbane return to our Home Page.
The Brisbane river has a history of significant flooding beyond it’s brown riverbanks. Many potential Buyers of real estate in Queensland will ask Horrocks Solicitors what they need to know about buying a house in a flood zone in Brisbane.
As Brisbane sits on flood plains the possibility of a future flooding is high; especially when you take into account that the highest recorded floods occurred as recently as 2011 and 1974, in addition to earlier floods throughout the last century.
If you are concerned about the possibility of buying a property in a flood zone. You can make the following inquiries before you enter into a contract:
The information in this map is sourced via flood studies conducted by the Brisbane City Council.
Click on the Flood Awareness Map and follow the links, it is important you read and
understand the conditions of use. This Map will give you a percentage likelihood of flooding
including details of the 1974 and 2011 floods.
FloodWise Property Reports show the risk and type of flooding at a specific property including estimated flood levels.
