The start of a new year seems to be a popular time for people to decide they want a fresh start, sometimes with finding the house of their dreams.
With the current market, there are hordes of interstate buyers, particularly from Sydney, who are ready to buy Queensland properties with cash.
It is important to note that the way a property is purchased in Queensland differs from the process in our southern states.
Generally, the standard contract of sale used includes a 5-business day cooling off period, which is in place to protect the buyer. It affords the buyer a greater sense of protection to sign a contract before going to a solicitor, however it is important to remember that if the buyer does decide to pull out of the contract under the cooling off provision, a termination fee of 0.25% of the purchase price can apply.
Another aspect of the conveyancing transaction which often stumps interstate purchasers is that building and pest and/or finance conditions are not included as standard conditions. Accordingly, if a buyer needs to obtain finance for the purchase, or wishes to undertake a building or pest inspection on the property, these conditions need to be written into the contract on terms agreed between the buyer and the seller.
Of course, there is also the option of including special conditions in a contract, depending on individual circumstances and terms agreed between the parties, and we always recommend that if you are considering purchasing property, that you contact a solicitor prior to signing the contract so its terms and conditions can be explained to you in detail.
Something else to keep in mind if you are an interstate or local buyer, is the potential ramifications of stamp duty and land tax. Each state has their own legislation in place dealing with land tax and stamp duty, and it pays to be aware of your obligations prior to entering into a contract. While some property investors use the differences between the states to leverage risk and perhaps reduce their liability for land tax, it is important to seek independent advice pertaining to your individual circumstances.
As always, Affinity Lawyers have an experienced and professional property team on hand to assist you with any enquiries you may have regarding the purchase of a property or the conveyancing process in Queensland.
Telephone our office today on 5563 8970 to discuss your query today.
