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.
Negotiation skills play a pivotal role in the offer-making process. Being prepared to engage in negotiations with the seller or their representative is crucial. This entails maintaining a firm stance and standing by your financial boundaries while exploring potential compromises. Negotiations allow for the exploration of mutually agreeable terms and conditions that satisfy both parties involved. Contact Horrocks Solicitors today for a contract review before you sign at 07 3013 2300 or email reception@rivercityconveyancing.com.au
CONVEYANCING SETTLEMENT DAY FAQS : On settlement day in Queensland, various important steps take place including: If you are buying a property, one of your responsibilities is to pay the remaining amount of the purchase price to the seller. Additionally, as a buyer, you will receive the title of the property in your name and collect the keys from the real estate agent or representative. This allows you to officially take possession of the property.
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 stamp or transfer duty on multiple dutiable transactions can only be added together to form one arrangement if they are collectively related - this is determined by several factors.
Aggregation or the addition of the duty on dutiable transactions will result in the payment of more stamp duty than if duty was paid separately on each property.
Are they contained in one instrument (e.g. an agreement or a transfer)
Are any of the transactions conditional on entry into, or completion of, any of the other transactions
whether the parties to any of the transactions are the same or are related
the timeframe over which the transactions take place
whether, before the transactions take place, the dutiable properties were used together or dependently by the transferor(s)
whether, after the transactions take place, the dutiable properties are used together or dependently by the transferee(s).
Aggregation of dutiable transactions is compulsory under section 30 of the Duties Act 2001.
If transactions can be aggregated then the transfer duty is calculated on the total consideration or value rather than each dutiable transaction separately. This will be a greater amount of Stamp Duty than if you paid stamp duty separately for each property.
At lodgement for assessment all parties involved must declare the following information:
Their knowledge of
all the dutiable transactions and property included in the arrangement
the dutiable value of each dutiable transaction.
For aggregated transfer duty the total amount payable may be higher than if each transaction were calculated separately and added together.
The transfer duty rate is applied to the added TOTAL value of all related transactions and NOT calculated by applying the rate separately to each transaction.
If you have any questions related to the calculation of your stamp duty in Brisbane or paying Queensland transfer duty contact Horrocks Solicitors today on 07 3013 2300.
Know what your conveyance fees should be for buying and selling a house in Brisbane by comparing our competitive low cost conveyancing.
When buying or selling property you will need to satisfy the legal process for the transfer of ownership. As this involves the execution of a house and land contract and crucial conveyancing steps we recommend to leave it in the hands of a trusted conveyancing solicitor.
If you have recently signed a contract or are looking to buy or sell soon consider that should you make an error with your conveyancing you may cause a delayed settlement whereby you will be required to pay default interest or enable the party on the other side to terminate the contract at your expense and sue you for breach of contract.
In Queensland some property solicitors will offer a price based on an hourly charge which can accumulate quickly if any complications arise during the course of the contract which is generally 30 days for a standard house and land.
At Horrocks Solicitors there are no hidden costs in our fixed fees and we have over 30 years experience with more than 70,000 settlements completed by John Horrocks.
There are also search costs when buying a property.
During the conveyancing process there are various disbursements that can be incurred on your behalf by your Conveyancing Solicitor including a fee for the lodging of documents with the relevant authorities, the option of important searches to know if there are planning restrictions, zone regulations, unapproved constructions or any vested interest by the government authorities. These are important to be aware of as they may affect the value of the property.
For residential home or land purchases, we carry out the following property searches required to reasonably secure your purchase.
Standard Search Package:
Title Search upon receipt of the contract
Council Rates Search which reveals information about the state of the rate account.
Main Roads Search
Land Tax Clearance Search
Registered Plan of Land Search
Title Search on the day of settlement.
Additional and optional searches can include the Body Corporate Information Certificate, Certificate of Currency, Contaminated Land, Railways and Bankruptcy.
We will collect a cheque for our fees at settlement. There is no upfront payment for our conveyancing services.
Conveyancing solicitors are able to deal with any complex legal problems that can come up during your conveyance and you can have the peace of mind that your property transfer will be handled with care and in the best interests of your legal rights. Furthermore Horrocks Solicitors can offer you expert legal advice beyond conveyancing in the circumstances of a separation or divorce.
Call today for guaranteed and affordable legal property advice Horrocks Solicitors 07 3013 2300 or email your contract to reception@rivercityconveyancing.com.au
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.
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
The Queensland Government offers a grant to first home buyers to purchase their first home sooner.
The grant may be from $15,000.00 to $20,000.00 however is only available if you are buying or building a new home. This home must be your first home purchase with a sale price that is less than $750,000.00.
In addition:
You must be at least 18 years of age.
You must be an Australian citizen or permanent resident (or applying with someone that is)
You or your spouse must not have previously owned property in Australia that you/they lived in.
You can buy or build a new house, unit or townhouse
It can be off the plan or you can choose to build yourself
You must be buying or building a brand new home
The value of the home including the land must be less than $750,000.
You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.
You can click on the following site to check your eligibility for the First Home Owners Grant.
FIRST HOME OWNERS GRANT ELIGIBILITY
While this guide will explain applying for a first home owner grant, and your obligations after receiving it
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.
