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Buying or selling a residential property will be one of the most important financial transactions you make. To be confident in your decision and to ensure that no unexpected costs arise or problems appear, seek the advice from AFFORDABLE CONVEYANCING before you sign any contract.
Conveyancing
Conveyancing is the term used to describe the transfer of ownership of property from the seller to the buyer.
Solicitors and real estate agents can assist you with your conveyance.
You do have the choice of doing the conveyance yourself, but you do so at your own risk.
Solicitors and Real Estate Agents
It is important to understand the different roles solicitors and real estate agents play in Conveyancing.
Solicitors and Conveyancing experts who have been trained in this area of law competently and efficiently to guide you through a transaction to ensure your interests are protected.
As each property is different, so is each conveyance. Affordable Conveyancing can advise you on the need for special conditions and other legal matters which touch on Conveyancing law – such as updating your Will or making and Enduring Power of Attorney and Advance Health Directive.
Real estate agents (now often called ‘property agents’) are the sellers’ representatives who receive commission from the seller when the property is sold. The real estate agent is responsible for obtaining the best price and contract terms for the seller. A real estate agent is not qualified to give legal advice on the contract or to draft clauses or modify the pre-printed contract in any way.
Sustainability declaration
From 1 January 2010, if you are selling a house, townhouse or unit, you will be required to have a sustainability declaration prepared. You can obtain more information from the Department of Infrastructure and Planning’s website www.dip.qld.gov.au, or see us.
The Contract
A standard contract for the conveyancing of residential property was developed by the Real Estate Institute of Queensland and Queensland Law Society.
When you have expressed your interest in purchasing a property, the real estate agent will prepare a standard contract for you to sign.
Seek advice before you sign – send a draft contract to Affordable Conveyancing to make sure it is correct and meets your needs. A standard contract cannot deal with the individual circumstances of every transaction.
If necessary, Affordable Conveyancing can add special clauses to the contract, for example:
- The purchase may depend on the sale of your existing property
- The property is not subject to flooding and the sellers have obtained all necessary statutory approvals and complied with those approvals.
It is also recommended that you obtain an independent valuation of the property before you sign the contract.
There are a number of critical Warning and Disclosure Statements which must be completed and signed to ensure that the contract is properly formed. You should ask your solicitor to ensure that these are correct before you sign.
Special Points for townhouses and unit buyers
Townhouse and unit buyers should ensure they:
- Are informed of certain matters before you sign the contract, for example, your annual contribution to the body corporate, and
- Receive certain warranties from the seller, for example, that there are no hidden or obvious defects in the common property.
If the defects and liabilities are not disclosed in the contract you may be able to cancel the contract and recover any money paid.
Cooling-off period
All residential property sales in Queensland are subject to a buyer’s cooling-off period of five (5) business days commencing on the date the buyer or their lawyer receives a copy of the contract signed by both the buyer and the seller.
If you, the buyer, decide not to proceed with the sale within that period, you must give notice the other seller in the specified want to cancel the contract; you must pay the seller 0.25% of the purchase price of the property. If your deposit exceeds that 0.25%, the balance must be refunded to you.
Auctions
No cooling-off period applies to buyers who purchase at auction on the fall on the hammer. The cooling-off period applies if a property is passed in at auction and a bidder subsequently buys the property.
Buying a house
Your solicitor will:
- Check the title and plan of the land for easements, caveats, and other encumbrances;
- Carry out searches based on your instructions ;
- If requested Inform you if these searches disclose any zoning and planning regulations or other restrictions affecting the property
- If requested check for any disputes or other charges affecting the unit or townhouse (community title land)
- Prepare all documents and make sure you gain good title to the property you are buying.
Selling a house
Before listing your property for sale with a real estate agent, speak to your solicitor about:
- Making sure that any Disclosure Statement and the Warning Statement will be satisfactorily completed
- The inclusion of fixtures and fittings
- Any alterations you have made to the property
- The date of settlement and, if relevant, the timing of any new home purchase
- Any special terms which you want in the sale, and
- Make sure you have installed a compliant fire alarm.
Once a buyer has signed a contract to purchase your property and paid a deposit, your agent will deliver the contract to you, either by hand, post, fax or email.
Before signing, speak with your solicitor about this contract to make sure that all formalities have been complied with.
Up to the date of settlement, your solicitor will:
- Check that all documents you are required to sign are in order
- Ensure all outstanding government charges such as water rates have been paid
- Arrange for the repayment and legal discharge of any mortgage on your property
- Ensure you are paid in full for the property.
Buying a townhouse or unit
When you buy a townhouse or unit (community title) you take on a relationship with the other owners and the body corporate such as:
- Sharing the ownership of common areas – lifts, stairwells, front entrances, etc
- Becoming a member of a body corporate which is regulated by fairly complex rules: you are jointly and severally liable for the body corporate’s debts.
The body corporate is made up of all the owners. It decides issues about the common property, concerns of owners and maintenance of the complex.
Owners regularly contribute money to the body corporate for day-to-day ongoing expenses and anticipated long term costs.
You should ask Affordable Conveyancing to explain the ramifications of buying community title.
Selling your townhouse or unit
Before listing your townhouse, unit or other community title property for sale with a real estate agent, speak to us about:
- Making sure that any Disclosure Statement and the Warning Statement will be satisfactorily completed
- The need to disclose outstanding liabilities and the implied warranties which you must give as a seller
- The inclusion of fixtures and fittings
- Any alterations you have made to the property
- Your obligations to any existing tenant
- The date of settlement and if relevant the timing of any new home purchase
- Any special terms which you want in the sale, and
- Make sure that you have installed a compliant fire alarm
Once a buyer has signed a contract to purchase your property and paid a deposit, your agent will deliver the contract to you, either by hand, post, fax or email.
Before signing, speak with to Affordable Conveyancing about this contract to make sure that all formalities have been complied with.
During the Conveyancing, Affordable Conveyancing will:
- Ensure outstanding government charges and body corporate contributions have been paid;
- Arrange repayment and legal discharge of any mortgages on your property;
- Check that all documents you are required to sign are in order;
- Ensure that you are paid in full.
The costs involved
Legal costs
Ask Affordable Conveyancing for an estimate of legal and other costs and to tell you more of the details on the processes involved in the handling of your conveyance.
When buying
Affordable Conveyancing will advise you on standard charges such as stamp duty, council and government search costs and document registration fees.
If you are going to live in the residence you may be eligible for a stamp duty discount.
When selling
You are obliged to give clear title to the buyer. Unless special arrangements have been made you must also give vacant possession on settlement.
Your real estate agent will charge a commission on the sale and there may also be bank or building society charges to consider.
Agents Commission when selling
By law, you are at liberty to negotiate and bargain all real estate agents commission.