A Step-by-Step Guide to Understanding the Residential Property Conveyancing Process
Do you have your sights set on a stunning Sunshine Coast home? Wondering how property conveyancing works in Queensland? Let us help you.
With the guidance of our seasoned Sunshine Coast property lawyers, we can help facilitate a smooth, clear, and successful residential property transaction. For starters, we have prepared a quick discussion about the local conveyancing process below.
The Queensland Residential Conveyancing Procedure
Step 1: Seek Legal Review Before Signing
The residential conveyancing process officially begins once the Contract of Sale is signed. However, it’s best to seek legal advice before signing! In Queensland, signing a contract makes it legally binding right away. Trying to fix issues after the ink is dry can be tough, stressful, and, not to mention, costly.
Experienced conveyancing solicitors can help review the draft contract, including all special conditions and schedules, before you sign the dotted line. This proactive approach matters a lot. You can ensure all terms are fair and protect you from unforeseen legal burdens. Seasoned property lawyers like us can also walk you through the five-business-day cooling-off period so you fully understand your rights.
For Sellers: The Critical New Requirement
If you are selling a property, a significant change in Queensland property law (effective from 1 August 2025 under the Property Law Act 2023) requires you to complete and provide a comprehensive Seller Disclosure Statement (SDS) to the buyer before the Contract of Sale is signed. If the SDS is incomplete or inaccurate, the buyer may have the right to terminate up to the settlement date.
For Buyers: SDS Check Before Signing the Dotted Line
As part of our pre-contract advice, we meticulously check the Seller Disclosure Statement (SDS) provided by the seller’s lawyer. This ensures you have all the necessary information and that your rights are protected before you commit to the purchase.
Step 2: Perform Critical Due Diligence and Property Searches
Once your contract conditions are firm, the next phase is performing due diligence. This is where your property lawyers conduct the essential ‘deep dive’ to verify everything about the property’s legal standing. This step may include:
Title Search: We start by verifying that the seller is the true owner of the property. You can also count on us to dig deep and look for any unforeseen registered interests on the property, such as covenants or easements.
Local Authority Search: Rates, water connections, and any pending compliance issues or orders with the local council matter, too. You can expect your conveyancing solicitors to go through all that information.
Body Corporate/Community Management Search (if applicable): Planning to purchase a unit or townhouse? Your conveyancing solicitors can thoroughly scrutinise the Body Corporate records, financials, and regulations on your behalf.
PEXA Verification: Preparing for the electronic settlement platform (PEXA), which is the modern standard for transactions in Queensland.
The Lawyer Difference: This comprehensive check ensures you have a clear, complete picture of what you are buying before finalising the sale.
Step 3: Meet Contract Conditions (Finance & Building/Pest)
Critical Special Conditions, usually related to finance approval and satisfactory building and pest inspections, are usually included in standard Queensland contracts for property sales and must be fulfilled by certain dates.
Finance Approval: By the specified Finance Date, the buyer needs to get official approval from their lender. If you are a first-home buyer using the Australian Government 5% Deposit Scheme, your finance approval is intrinsically tied to meeting the scheme’s property price caps and deadlines. You can count on our team of conveyancing solicitors to liaise closely with your lender to ensure the contract’s settlement date aligns perfectly with your scheme approval period to keep your LMI exemption valid.
Building & Pest Inspection: Prompt, thorough inspections are vital for the timeline. If the reports uncover major structural defects or significant pest activity, we advise you on your legal options for renegotiation or termination.
Managing these timelines can be tough. Missing a condition date—even by a day—can jeopardise the contract, but don’t fret, as our team is here to handle the legal heavy lifting to keep you on track.
Step 4: Do Final Calculations and Adjustment Preparation
As the settlement date draws near, we move into detailed preparation. This involves careful accounting and legal documentation.
Adjustment Statement: Our team prepares the Settlement Statement, ensuring a fair adjustment of costs (like rates, water charges, and body corporate levies) that the seller has already paid, as well as accounting for any unpaid charges that will become the buyer’s responsibility after settlement.
Transfer Duty (Stamp Duty): We help accurately calculate the Transfer Duty payable to the Queensland Government. Trust that we will factor in any applicable concessions (like the First Home Concession) and ensure all documentation for the Office of State Revenue is correct.
Liaison: As your legal experts, we will communicate extensively with your bank (if financing), the seller’s legal team, and the PEXA platform to ensure all details are aligned for settlement day.
Step 5: Perform the Pre-Settlement Inspection
A day or two before the scheduled settlement, you have the right to conduct a final inspection of the property.
The Purpose: This step is your last chance to confirm that the property is in the same condition as when you signed the contract and that all inclusions (like the oven or air conditioning unit) are still present and functioning. If any issues arise, we address them immediately with the seller’s representative before the transaction concludes.
Step 6: Enjoy the Settlement Day
The exciting moment! In Queensland, residential settlements are almost always conducted electronically via the PEXA platform.
The Final Moment: Your conveyancing solicitors manage the electronic settlement process. Funds are securely transferred, your new mortgage is registered, and the property title is officially transferred into your name. We confirm that all documents are properly lodged with the Queensland Titles Registry. Once that’s done, we give you the happy call—you are officially the owner, and you can collect your keys!
Additional Essential Steps for Sellers
While the process outlined above largely tracks the journey of a buyer, sellers have distinct and critical legal responsibilities that require experienced legal support.
The Seller’s Focus: Pre-Contract Preparation and Disclosure
For a seller, the initial preparation is the most critical stage, particularly due to recent changes in Queensland law:
Preparing the Seller Disclosure Statement (SDS): As noted earlier, this document is mandatory. Your conveyancing solicitor will work with you to meticulously complete the SDS, ensuring full disclosure of all relevant property matters, including any building approvals, pool compliance certificates, and body corporate issues (if applicable). Failing to provide the SDS can give the buyer an extended right to terminate the contract, severely jeopardising your sale.
Warranties and Representations: The contract will likely express any implied warranties that you, as the seller, are making about the property. We ensure you understand these obligations clearly to avoid later disputes regarding the property’s condition or boundaries.
Mortgage Discharge Management: We liaise directly with your financial institution to arrange the timely discharge of your existing mortgage. Proper timing is needed to ensure the clear title is ready to transfer on settlement day, avoiding costly delays or penalties.
Seller Obligations on Settlement Day
On the day of settlement, your primary focus is on vacating the property and delivering possession:
Vacant Possession: Unless otherwise agreed, you must ensure the property is completely vacant and free of all occupants, furniture, and rubbish by settlement time.
Final Utility Readings: We advise on when to take final utility readings (if applicable) and notify service providers to cease billing, ensuring a clean break from property outgoings.
Receiving Funds: Upon successful electronic settlement via PEXA, we confirm that the funds have been transferred to your nominated account, after deducting any amounts required to discharge your existing mortgage and cover professional fees.
When the Conveyancing Process Changes
The six steps above form the skeleton of every standard residential property conveyancing transaction. However, the legal details, risks, and required documentation can change significantly based on the type of transaction. These differences are exactly why working with experienced conveyancing solicitors is so crucial. Here are the key nuances for specific scenarios:
1. Buying Off-the-Plan (A Property That Doesn’t Exist Yet)
Buying a home that hasn’t been built or registered yet? That introduces unique legal complexities that go beyond the standard residential purchase.
Extended Due Diligence: The legal due diligence phase lasts until the property is physically ready and the title is registered, potentially taking months or years. Your contract review focuses heavily on the proposed plans, specifications, and the developer’s obligations.
The Sunset Clause: This is a critical provision that sets a deadline by which the development must be completed. If this deadline isn’t met, either party may have the right to terminate the contract. Your property lawyers need to ensure this clause fully protects you from adverse or unfair developer terminations.
Risk & Market Change: You are committing to a future price. We advise on managing the risk of market fluctuations and potential issues with valuation at the time of final settlement, which is vital for securing final finance approval.
2. Buying from a Family Member (Related Party Transfers)
When a property is transferred between family members—such as a parent selling to a child—you still require meticulous legal documentation to avoid unexpected tax or duty liabilities.
Duty Exemptions/Concessions: Queensland offers certain limited concessions or exemptions for Transfer Duty (Stamp Duty) for transfers between specific family relationships, often relating to primary residences or matrimonial assets. We can carefully assess if your transaction qualifies.
Valuation is Key: Even if the property is “gifted” or sold at a discount, Transfer Duty is often calculated based on the true market value of the property. We advise on obtaining an independent valuation to satisfy the Office of State Revenue.
Protecting Interests: Even though trust exists, engaging independent conveyancing solicitors for both sides ensures the transaction is legally sound, preventing future disputes and securing a clean title transfer.
3. Other Specific Scenarios
The general conveyancing process is robust, but certain transactions carry additional, critical legal considerations:
Buying at Auction: In Queensland, purchasing property at auction means there is no cooling-off period. This is crucial: the contract is immediately binding upon the fall of the hammer. You must have your finances secured and all legal advice confirmed before you bid.
Transfers Involving Government Schemes: If you are utilising a government scheme (like the Australian Government 5% Deposit Scheme), your lawyer’s role is critical. The settlement date must strictly comply with the scheme’s approval window, and any delays or errors in documentation can jeopardise your low-deposit funding.
Transferring to a Trust: If you are buying in the name of a Self-Managed Super Fund (SMSF) or Family Trust, the transaction faces high scrutiny. Your property lawyers must meticulously review the Trust Deed and the Trustee’s authority to ensure the contract is valid and that you avoid unexpected duty calculations or penalties.
Buying with Joint Tenants or Tenants in Common: We advise on the specific type of co-ownership you choose. Joint Tenancy means ownership passes automatically to the surviving owner, whereas Tenants in Common means your share passes according to your Will. This decision is essential for effective Wills and Estate Planning.
You Can Rely on Bradley & Bray
Whether you are navigating a standard purchase or the specific legal complexities of buying off-the-plan or from family, the team at Bradley & Bray has the expertise you need. We are a passionate, local law firm dedicated to bringing a wide range of personalised legal services to our community on the Sunshine Coast. So, when you need conveyancing solicitors near you, you can ensure that we are here for you.
Ready to start your property journey? Please feel welcome to give Bradley & Bray a call to book a consultation. We’d be delighted to discuss how we can make your next property conveyancing experience a seamless success.
Disclaimer: This article is general in nature and does not constitute legal advice. If you require legal advice in relation to your personal circumstances, you must formally engage our firm or another firm to provide legal advice in relation to your matter. Bradley & Bray lawyers take no responsibility for any use of the information provided in this article.
