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.
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’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.
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
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.
