What is Conveyancing?
Conveyancing is the process used to transfer any property from a legal owner/s of property to the entity of the incoming owner/s.
The best time to engage a property lawyer
Purchase a property can be a very stressful and complex undertaking.
It is suggested that you always consult a property lawyer prior to purchasing a property. The lawyer will be able to highlight certain legal requirements and also direct you to issues that you should consider before deciding to sign a Contract of Sale to purchase the property.
What is “time of the essence”?
The term ‘time of the essence’ governs all the contract conditions under a standard Contract of Sale in Queensland. During the conveyancing process, there are generally a considerable number of key dates and conditions required for the contract to be completed before settlement.
Each deadline in this context must be completed by 5.00pm on the stipulated date in the contract. Failure to complete by 5.00pm on any date would mean a failure to comply resulting in a breach of the contract. In the event of breach, the contract may be terminated, or sued for damages, and/or for specific performance.
Stamp Duty for purchasing property
The State Government levies a tax to be paid by new purchasers of property in Queensland. This tax has been referred to as Transfer Duty or Stamp Duty. The amount paid for Stamp Duty is based upon the purchase price of the property.
There may be certain exemptions and concessions available to purchasers depending upon their individual circumstances. In general, if you are purchasing a property to live in, then you will be entitled to claim the Home Concession, which reflects a lower Stamp duty amount payable.
Who is responsible for paying Stamp Duty?
Stamp Duty is payable by the property buyer in most standard sale contracts. As noted above, the Stamp Duty amount is determined based upon the purchase price and whether any relevant concessions are applicable.
The cost difference between buying and selling property
There is a difference in the legal costs payable depending upon whether you are purchasing or selling a property. When buying a property, the necessary paperwork requirements are more complicated when compared with the seller. Further, there will be necessary searches to be conducted on the property to ensure that the buyer is aware of certain issues that may impact upon their decision to purchase the property. As such, the legal costs involved in purchasing a property is generally much higher than selling a property.
It is recommended however that a seller ensures that they obtain proper legal advice to guide them through the conveyance process. This is to ensure that their rights and obligations are being met in accordance with the contract.