The conveyancing process involves transferring title to a property from one party to another. A conveyancer is an important person in the real estate industry, as he or she will be the one who you will have to consult with if you are selling your property or buying a new one.
A conveyancer in Queensland is a lawyer who manages the completion of the conveyancing process in QLD, also known as a deed of settlement, which usually occurs after a Property Transfer.
However, it can be a difficult process for some, especially when there are changes to the structure of the conveyancing system. This piece aims to help you understand how conveyancing works in Queensland, Australia, by outlining the conveyancing process step by step.
1. Find a home you want to buy
Before finding a home you want to purchase, the process starts with finding out your borrowing potential. This can be done easily online by completing a free, no-obligation loan inquiry form. You can then determine a budget you want to spend on a property.
The real estate market is always changing, and you want to make sure you are getting the best deal on your home by doing plenty of research. Perhaps the most important part of the buying a house conveyancing process is determining what location, size, and type of property you want for your new home. While real estate fees are one-off costs, they can add up if you have to pay several inspections and valuation reports along the way, so it’s important not to rush.
2. Contact GM Law so we can take care of you every step of the way
Let GM Law handle all of the steps so you can sit back and relax knowing your case is in good hands. You’ll receive our legal advice to ensure you understand all of the legal terms and conditions. We’ll save you time by reducing the amount of paperwork, phone calls, and email you need to deal with when buying or selling a home.
3. Know the conveyancing specifics of Queensland
Conveyancing is a highly technical process. It’s important to know the conveyancing specifics of Queensland, as they are different from other parts of Australia. In Queensland, it is not permitted by law to have Licensed Conveyancers own conveyancing firms. You can employ licensed Conveyancers and Paralegals at law firms to provide the service of conveyancing; however, a Solicitor must supervise.
Rather than learn the conveyancing specifics of Queensland yourself, why not just let GM Law do that for you? If you’re not already using a conveyancer to act on your behalf, take the time now to find one who can give you what you need.
4. Arrange building inspections
If you are planning to get a building inspection done on the property, make sure you get one that covers mould. Many inspections do not have a dedicated section for mould, so be sure to request this. If you notice any sign of black mould in the house upon viewing it, it’s a good idea to get a building inspection done before committing to buy.
5. Make an Offer
Once you are prepared to make an offer, your Real Estate Agent will provide you with the formal Contract of Sale. The seller either countersigns to endorse the price or makes a counter-offer after you have signed the contract. The Real Estate Agent normally manages this process until both sides have settled and agreed on a price.
6. Obtain finance
You will have two options regarding the payment of the purchase price:
- Make a cash offer; or
- Make the contract subject to finance approval from a lender. If you choose this option, the name of the lender and the amount to be borrowed should be specified. The date by which finance approval should be obtained must also be specified.
7. Sign the Contract
The seller then signs the document to confirm that the seller agrees to sell the property to you for the purchase price, terms, and conditions listed on the contract.
Any conditions that you have on the sale of your home will be stated in this contract. Conditions include inspection requests, financing and appraisal information, and any other queries that may stop a transaction from completing smoothly.
8. Cooling-Off Period (For Residential Properties)
The cooling-off period is 5 business days to give the buyer time to consider the purchase and ensure it is what they want. It’s worth noting that if you exercise cooling-off rights, it costs .25 percent of the purchase price.
Typically, the deposit is paid into the Real Estate Agent’s trust account. You could purchase a Deposit Guarantee Bond if you don’t have the funds however you would need to ensure you have the appropriate special condition in the contract to allow you to provide a Bond. The Deposit Guarantee Bond is an insurance policy that reimburses the Seller if you don’t complete the contract.
10. Insure Your Home
If you are purchasing a home, it should be insured by 5 pm on the next business day following the signing of the contract. You can get an insurance policy from any Licensed Insurance Agent or Broker.
11. Performing the Search
Your conveyancer will ask questions after both parties have signed the deal to test ensure the accuracy of the warranties spelled out in the contract by the seller. At this stage in the process, it’s important to ensure these adjustments are made in your favour at settlement. Such adjustments include:
- For the House: the local Council rates , Land Tax,
- For the Unit: the local Council rates, Land Tax, the Body Corporate levies.
We also upon request investigate any Neighbourhood Disputes, and any difficulties with the body corporate that might have an excessively negative impact on you.
12. Satisfy your Lender’s conditions
The Lender will need to be advised on when to deliver the funds to register the mortgage. Your conveyancer must meet all of the bank’s requirements.
13. Pay Transfer Duty
The Transfer Duty is a government charge that must be paid within 30 days of signing the contract.
14. The Transfer
The Transfer is a legal document that contains information about property ownership. The Department of Natural Resources and Mines has these materials. Once registered, the transfer is complete.
15. Notice of Sale
Provide your contact information to the Council, Water Board, and other government departments involved in the sale so that they know where to send your notifications.
16. Settlement Figures
The settlement occurs when the funds are transferred to the Seller along with the legal documents. This process officiates the transfer of ownership to the Buyer. The costs at settlement are divided between the Buyer and Seller, also known as “adjustments.” These costs include council rates, water usage, corporate body levies (in the case of a unit), and taxes.
17. Taking early possession
A Buyer takes early possession if they move in before the settlement. In general, it is not a common occurrence, and Conveyances will typically advise against early possession.
18. Final Inspection
During the final inspection, the home needs to be checked for the following:
- The Seller has moved out (or they are pretty well on the way to being out by Settlement time)
- All rubbish has been removed.
- The Seller has left behind any goods that were sold with the house as per the Contract – such as the dishwasher, blinds, light fittings, etc.
19. The Settlement
The Buyer does not need to present during the settlement. The Seller’s Conveyancer hands over the Transfer, along with the funds and a letter for the Real Estate Agent authorising them to release the deposit. Your Lender will take possession of the documents as they need to have these in order to lodge the Mortgage.
20. After Settlement
The Seller’s Conveyancer notifies the Real Estate Agent that the sale has gone through and authorises them to release the keys to you as the Buyer.
Your Conveyancer will get in touch with you to let you know that Settlement has gone through. They will also send you a Settlement statement showing how all the money has been dealt with.
If you are buying a unit, your Conveyancer will notify the Body Corporate of your details (as the new owner), so they will know to whom to send the Notices of Levies. Notices of Levies include building insurance, maintenance, and a fund for future maintenance and repairs to the building.
If there is no Lender, your Conveyancer will arrange for the Transfer, and the Discharge of the Mortgage from the Seller to be lodged at the Department of Natural Resources & Mines in Brisbane. After you are registered as the owner, your Conveyancer will let you know that you have been registered as the new owner and send you a Registration Confirmation Statement.
Contact GM Law, who will help guide you through the conveyancing steps if you require assistance on how conveyancing works in Brisbane. Property conveyancing in Brisbane entails numerous steps. House sale conveyancing is often complex, and it is advised that you get the help of a conveyancing work professional to assist you with the stages of conveyancing.
It is important to note that if you are looking for how conveyancing works in Brisbane, it is advised that you get help from a law firm such as GM Law who has experience in the house conveyancing process area and will be able to assist you with the process of how conveyancing process of buying works in Queensland.