Buying or selling real estate in Queensland is a major financial decision. Whether you are purchasing your first home or selling an investment property, understanding the legal requirements and processes involved will help you avoid unnecessary complications.
This guide covers the key aspects of property ownership, including legal requirements, contracts, deposits, conveyancing, mortgages, and taxes.
Property Ownership Laws
In Queensland, property ownership is governed by various laws. Real estate includes land, houses, units, townhouses, retirement villages, and timeshare properties. Understanding these laws helps buyers and sellers navigate the legal landscape of property transactions.
Getting Professional Help
Buying or selling a property is a significant financial commitment, and it is essential to work with qualified professionals.
- Before signing any contract, seek legal advice from a solicitor. The Queensland Law Society can refer you to a qualified property lawyer.
- If you choose to buy or sell through a licensed real estate agent, you are protected under the Property Occupations Act 2014. Licensed agents must adhere to industry standards and codes of conduct.
- If you choose to buy or sell privately, you will not be covered by the protections in this Act.
Understanding Contracts
All property sale contracts in Queensland must be in writing. Most transactions use a standard contract approved by the Real Estate Institute of Queensland and the Queensland Law Society.
Common Contract Conditions
Buyers may include conditions in a contract to protect their interests. Common conditions include:
- obtaining a satisfactory building and pest inspection
- securing financing to complete the purchase
- selling an existing property before proceeding with the purchase
A solicitor can help review the contract to ensure that any conditions meet your needs. Before signing, make sure you fully understand the terms.
Cooling-Off Period
When purchasing a property in Queensland, buyers generally have a five-business-day cooling-off period. If you decide to cancel the contract within this time, you may have to pay a fee, which is a percentage of the purchase price. Seeking legal advice before signing a contract can help you understand your rights and obligations.
Deposits
When signing a property contract, buyers usually pay a deposit. The deposit amount can vary and is negotiable between the buyer and the seller. Some sellers may accept a small deposit initially, with the balance paid once the contract becomes unconditional.
The Conveyancing Process
Conveyancing is the legal process of transferring ownership of a property from the seller to the buyer.
- Once a contract is signed, it can take several weeks to complete the transfer.
- Searches are conducted to confirm that the seller legally owns the property and to check for issues such as land contamination, easements, or government claims on the land.
- The buyer must ensure that the land title is registered correctly with the government.
Conveyancing can be done independently, but legal advice is highly recommended to ensure all legal requirements are met.
Buying or Selling at Auction
Buying a property at auction is different from a standard purchase.
- The highest bidder at an auction must sign an unconditional contract immediately.
- There is no cooling-off period when buying at auction.
- Buyers should conduct property inspections, finance approvals, and legal checks before the auction.
Selling at auction means the seller can secure a legally binding sale on the day of the auction, provided the reserve price is met.
Mortgages and Borrowing Money
Most buyers take out a mortgage to finance their purchase.
- A mortgage is a legal agreement where the lender (usually a bank) provides a loan secured against the property.
- If the borrower fails to make repayments, the lender has the right to sell the property to recover the debt.
- If the sale price does not cover the full loan amount, the borrower remains responsible for repaying the remaining balance.
Understanding Caveats
A caveat is a legal notice that prevents any dealings with a property, such as selling or transferring ownership, without the consent of the person who lodged the caveat.
- Caveats must be lodged with Titles Queensland.
- Lodging a caveat without a legal right to do so may result in legal costs, so legal advice is recommended before filing one.
Joint Ownership Options
When buying a property with others, you must decide on the type of ownership.
- Joint tenancy means all owners share equal ownership. If one owner passes away, their share automatically transfers to the surviving owners and cannot be left in a will.
- Tenancy in common allows each owner to have a defined share of the property. These shares may be equal or different proportions. Owners can transfer their shares or leave them in a will.
If you wish to change the type of ownership, seek legal advice.
Transfer Duty and Land Tax
Property buyers should be aware of applicable taxes when purchasing real estate.
- Transfer duty (formerly stamp duty) applies to all property transfers. The amount payable depends on the purchase price and whether the buyer is eligible for any concessions.
- Land tax is charged annually based on the total unimproved value of the land owned. If the property is the owner’s principal place of residence, it is usually exempt from land tax.
Understanding the legal aspects of property transactions ensures a smoother buying or selling experience. Whether you are a first-time homebuyer or a seasoned investor, working with professionals and staying informed about Queensland property laws can help you make confident decisions.
