Frequently Asked Questions. Property Law.
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Stamp duty (called Transfer Duty in Queensland) is a one-off state government property-transfer tax. The amount and any available concessions and exemptions vary from state to state and on the purchaser’s circumstances. To work out how much you will have to pay in Queensland, check out the Transfer Duty Calculator here.
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A cooling-off period of 5 business days applies to contracts on residential property purchases. It begins the day the buyer receives the copy of the contract, signed by both parties. There are exemptions to the cooling off period, so you should seek advice as to whether the cooling off period applies to your residential property purchase.
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Settlement is the term used for transferring a property from seller to buyer. The exact length of the settlement period will be outlined in your contract of sale. To prepare for settlement, calculations will be made on the balance of the sale price, transfer duty, registration fees, council rates, duties, and other expenses. On Settlement day, after the calculated settlement amount is paid in full, the title will be transferred to you, and you will take ownership of your new home.
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PEXA stands for Property Exchange Australia. It is an electronic conveyancing service that enables lawyers, conveyancers, and professionals to lodge transfer documents, pay taxes and duties and communicate between parties electronically. Bradley & Bray Lawyers were the first lawyers in Queensland to use this enhanced method of property settlement and we have now completed over 1000 settlements through PEXA.
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Many people make the mistake in booking their moving truck for settlement day. Sometimes delays in settlement can occur, so to avoid frustration, it is best to allow a few days buffer before moving in. Many Settlements will take place in the afternoon due to bank requirements, so it’s always best to speak with your Lawyer before confirming removalist details.
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Yes. Standard Term 8.1 of the ‘Terms of Contract’ provides that the Property is at the Buyers Risk from 5:00pm on the first Business day after the Contract date. So, it’s important to make sure you have your insurance arrangements in place once you’ve signed the Contract.
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The Title is your guide to many of the Contract particulars, and the Contract should reflect the details that are in the title. The Seller’s name, Lot and Plan description, Title Reference, Encumbrances (such as Easements, Covenants etc.) – these are all Title particulars that should be correctly noted in the Contract.
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If you are obtaining Finance in any form, then you will need to make the Contract subject to Finance. Don’t naively assume a ‘pre-approval’ is an approval worth relying on. Don’t trust your family members when they say they will loan you the money. Make the Contract subject to Finance.
If you’re obtaining a Building & Pest report (which you should do), the Contract should be made subject to you being satisfied with this report.
Both conditions should allow a reasonable amount of time for you to be satisfied under both conditions.
There are many more conditions that may be relevant to your purchase which should always be discussed with a Lawyer before signing a Contract.
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Unless a time frame is specified in the Contract, the initial deposit is payable by 5:00pm on the day the Buyer signs the Contract. If the deposit is not cleared into the Deposit Holder’s trust account by then, you are in breach of Contract. We often suggest that the words ‘within 2 Business Days of the Contract Date’ are inserted as a time frame for payment of the initial deposit, to ensure that the Buyer stays compliant with this term. The new REIQ Provisions allow greater relaxations of these timeframes if paying the Deposit electronically, so best to speak with your Lawyer if in doubt.
If a balance deposit is payable, a good time to pay this is often once the Contract has become unconditional. Again, it is important to leave yourself enough time to have the funds cleared into the account of the Deposit Holder to ensure compliance with your obligations under the Contract.
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Page 3 of the REIQ Contract provides a handy little section called ‘included chattels’. If the Selling Agent or the Seller agrees to leave a couch, lawnmower, dishwasher, or anything that could be considered a ‘chattel’, it is important to note it in the Contract.
Failure to do so can often lead to issues closer to Settlement. Your pre-settlement inspection is the best time to find out whether the Seller has left the items that you were told were included.
There is a whole world of legal articles out there which talk about the legal difference between a ‘chattel’ and a ‘fixture’, so we won’t be discussing this here. The safest option is to just include all items you have been assured will stay at the Property in the Contract.
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If you are purchasing the Property in an entity that is not you personally, it is important that this entity is correctly described on the Contract. We suggest conferring with your Accountant or providing us with your Accountants details to ensure the correct entity is provided under the Contract. Failure to have the correct entity listed on the Contract can result in additional duty implications, or costs to rescind the Contract if the error is discovered prior to Settlement.
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Land Tax is a Government Tax on freehold land that you own, calculated during the financial year. Your liability to pay Land Tax is based upon many factors, such as the type of entity in which you own the Property in, the dutiable value of that property, and the number of properties you own.
If the Commissioner of State Revenue determines that you have become liable for Land Tax, you will be issued with an Assessment Notice.
If you would like to know more about any aspect of Property Law, contact our Conveyancing Team today on (07) 5441 1400 or complete the following form.
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