Strict requirements apply when completing a Verification of Identity check so that the Transfer forms can be signed for settlement.

Make sure you have current documents to complete your identity check.

The simplest way to verify your identity is to produce the following documents:

* Passport (current or no longer than 2 years expired); and

* Current Drivers Licence or Proof of Age card.

Note: If your name differs between these two documents, or to your name listed on the title to the property you are selling, you will also be required to produce your Marriage Certificate or any other relevant Change of Name certificate/s.

 

If you don’t have a Passport then you will need to produce a:

* Current Driver’s Licence or Proof of Age Card

* Birth Certificate

* Medicare Card

* Marriage or Change of Name Certificate (only if your name differs between your Driver Licence, Birth Certificate or Medicare Card or, to your name listed on the title to the property you are selling).

 

If you are unable to satisfy these requirements, other options do apply and we invite you to contact our office to discuss further. If you have lost your birth and/or marriage certificate, this issue may simply be resolved by applying for a new certificate from the Registry of Births, Deaths and Marriages of the relevant Australian State/Territory.

 

Who Pays Transfer Duty?

The buyer or transferee is usually responsible for the assessment and payment of transfer duty. You’ll need to pay any liability within 30 days of the unconditional date of the Contract or the settlement date, depending on which is the earlier of the two.

Transfer Duty Concessions

In Queensland, there are several concessions that you can apply for, each of which significantly lower your transfer duty. The two most common concessions are:

1. First Home Concession: If you’re a first-time home buyer, you might qualify for a transfer duty concession when purchasing your first home. Recently the Queensland Government raised the maximum price for eligibility to the First Home Concession from $550,000 to $799,999 (noting that if the residence is valued between $700,001 and $799,999, you must be paying market value for the property to remain eligible for this concession). These updates to eligibility for the first home concession now reduce the duty payable to as low as $0 where the purchase price and the market value of the property is $700,000 or lower.

First home buyers should also be advised that they may be eligible to also receive the Queensland Government’s First Home Owners’ Grant. The First Home Owners’ Grant is not the same as the First Home Concession for transfer duty and is provided by the Queensland Government to give eligible first time home buyers $15,000 or $30,000 towards buying or building a new home in Queensland. First home buyers should speak to their financier or click on the following link for more information: https://qro.qld.gov.au/property-concessions-grants/first-home-grant/

2. Home Concession: This concession is for individuals buying a home to live in as their principal place of residence. It lowers the transfer duty compared to standard rates. To qualify, you must be purchasing the property as an individual person (e.g. not a company or trustee), move into the property within a year of the transfer and live there on a daily basis for at least 12 months. Additionally, you are not able to extend or sign any leases or tenancy agreements before moving in or during the 12-month period that you live in the property. If you breach any of these requirements, you may be required to pay some or the full amount of transfer duty on the property, potentially with additional accrued interest.

How to Apply for Concession

To claim a transfer duty concession, you need to fill out the relevant Office of State Revenue forms. It’s crucial to ensure you meet all eligibility requirements and submit your application forms on time. At Mott & Associates, we handle these forms for you as part of our fixed-fee conveyance service or as part of your property purchase/transfer. It is important to keep in mind that if you are not an Australian Citizen, you are required to provide further information to the Queensland Revenue Office. In this instance, we ask that you retain any important relevant information such as VISA numbers and the details of your international passport.

Understanding transfer duty and available concessions can save you a lot of money when buying property in Queensland. Make sure you know the criteria and application process to take full advantage of these savings. For more personalised guidance, please reach out to our friendly team at Mott & Associates Solicitors www.mottlaw.com.au or phone (07) 3180 3580

What is Transfer Duty?

Transfer duty (previously called stamp duty) is a tax you pay when transferring property, whether it’s real estate, vehicles, or other particular assets. In Queensland, the Office of State Revenue oversees transfer duty. The amount you owe depends on the property’s value and the nature of the transaction.

Even though a typical REIQ Contract has standard terms about building & pest inspections, not always will the report allow a buyer to terminate a contract under those standard terms. When the issues in a report fall between the cracks (no pun intended), a due diligence clause can be a life saver.

2. Financial Assurance: The clause provides the buyer with the opportunity to review financial aspects such as land taxes, and any outstanding debts, caveats, or liens on the property.
3. Negotiation Leverage: If issues are discovered during the due diligence period, the buyer can negotiate repairs, price reductions, or even withdraw from the contract without penalty; meaning a buyer won’t be forced to buy something they no longer want.
4. Legal Protection: Including a Due Diligence clause offers legal protection, giving the buyer a specified period to conduct investigations and make an informed decision. This reduces the risk of future legal obligations which could pass to the buyer, and disputes related to undisclosed issues.
5. Peace of Mind: Ultimately, a Due Diligence clause provides peace of mind, ensuring that the buyer is fully informed about the property and can proceed with confidence following a thorough investigation.

There is an increasing number of property’s been sold under the hammer in South East Queensland, with a growing auction market. Before you start bidding there are a few essential differences to be aware of between purchasing a property by a standard inspection process and one at auction.

1. Be sure

Purchasing a property at auction means that there is no standard cooling off period.  A cooling off period is five business days after the date of the Contract where a buyer may terminate the contract.  There may be a penalty imposed of 0.25% of the purchase price, this is a small price to pay should the property not meet your needs.  Placing a Contract on a property at auction, you automatically waive your right to a cooling off period, so it is essential that you have researched the property and surrounding area and are sure it’s the one for you.

2. Unconditional

A Contract placed on a property at auction is automatically unconditional.  Meaning, that the contract is not conditional upon building and pest inspections, finance or subject to the sale of an existing property.  The need to organise finance approval prior to bidding is imperative, as you may be required to pay the respective deposit on the day.  Ask the agent for a copy of the contract and review all standard terms and conditions prior to the auction day, so you are aware of what obligations and rights you have throughout the conveyancing process and what to expect from the Vendor.  As part of Mott & Associates, Solicitors fixed fixed fee for purchasing residential property (contact our firm for conditions that apply), we offer a complementary review of the Contract prior to your signing same.

3. Inspect the property prior

As the Contract will be unconditional, it is important that you carry out respective inspections prior to the auction day.  Arrange with the agent, with the Vendors consent, to have building and pest inspections carried out well in advance, to identify and issues that may arise.  These inspections are at the buyer’s expense in Queensland.  Obtain copies of these respective reports and raise any queries with licenced professionals to gauge any works or repairs the property may require in due course, as after the contract is signed, these will be at your expense.

If you have a contract you wish for us to review or require assistance in the conveyance of your transaction, we invite you to contact our conveyancing team for further discussions.  We offer competitive fixed fee costs (contact our firm for conditions that apply) in relation to standard residential conveyancing matters.