Hopper Mott Bunting Lawyers have been serving Cleveland and the Redlands since 1970. In that time, we have successfully completed thousands of settlements. These sales include land, house, apartments, units and pretty much any residential property you can think of. We also act on special arrangements between buyer and sellers and will custom draft agreements [not included as fixed fee].
Step 1: If requested we will review your contract documents. If you are selling your property, we will look at the agreement between yourself and the agent. If you are selling and an agent is not involved, we will also draft the contract for an additional fee.
Step 2: Once the contract is signed, we will start the process of guiding you through the transaction. We will send you a comprehensive letter and booklet describing what will occur during the transaction and ensuring we have all the information required to complete the conveyance. The documents will provide a comprehensive list of all dates you need to diarise. We will also provide you a list allowing you to select what additional searches you would like to be conducted during the transaction (these costs are in addition to our fee). Any cooling off period or significant events such as finance or building and pest dates will be highlighted to you.
Step 3: From contract signature to an “unconditional contract”.
During this period we will liaise with you regarding any building and pest issues or ensuring the finance date is met. We will also contact the solicitor acting for the other party and advise you as to the requirements regarding any discharge of mortgage (if you are the seller). It is a legal requirement that we identify you adequately as per the Title Office so will need you to send in certified copies of your identity documents. The lawyers acting for both parties will confirm identification to protect the parties involved. We understand this can be inconvenient, but it is an essential step in protecting both yourselves and the other side from fraud.
What area’s do you service?
As most conveyancing is electronic these days so we can service anywhere in Queensland.
We regularly complete conveyances throughout the Redlands including Cleveland, Thornlands, Thornside, Birkdale, Russell Island, Macleay Island, Raby Bay, Redland Bay, Ormiston, Capalaba, Alexandra Hills, Coochiemudlo Island, Mount Cotton, Sheldon, Victoria Point, Wellington Point and Stradbroke Island.
What is the cooling off period and how does this affect me?
Generally when the Buyer signs the Contract of Sale they receive a statutory five business day cooling-off period in which they can terminate the contract without providing a reason to the Seller for doing so. If the Buyer elects to terminate during this period the Seller is entitled to keep 0.25% of the purchase price from the Buyer’s deposit.
If you have any concerns about the Property or the Contract you have entered into, please contact our office immediately for advice.
What happens if I do not pay my deposit on the due date?
In the standard REIQ, Deposits are commonly due when the Buyer signs the Contract, on a fixed date, a Special Condition or when the Contract becomes unconditional.
If a Buyer does not pay the Deposit to the nominated deposit holder by the due date, they will be in default under the Contract. If a Buyer is in default under a Contract, the Seller may have a right to terminate the Contract.
If you have signed a Contract and have not yet paid the Deposit or will be unable to pay by the due date, please immediately contact our office. We may be able to arrange an extension of time but is at the discretion of the Seller.
What is a disbursement?
A disbursement is a payment made to a third party, such as the Land Titles Office for a title search on the Property. Searches are conducted over the Property to ensure it is cleared from all outstanding monies at Settlement and to ensure any notices or orders do not impact legal ownership.
When and where do I collect the keys?
Once settlement has been effected, we will notify the Real Estate Agent in writing. Keys will be collected from the Real Estate Agent unless an alternative arrangement has been agreed between the parties.
What is PEXA?
PEXA is an online property exchange network and assists lawyers, conveyancers and other professionals to transact online to lodge documents and settle digitally, ensuring a more efficient, faster and cost effective conveyancing process.
For more information please visit PEXA here.
What is a certificate of title?
The document that shows the legal ownership of a property. From 1 October 2019 paper Certificates of Title (sometimes called “The Deed”) issued in Queensland will no longer have any legal effect, as the electronic title held by the Titles Office will be the true record of ownership. From this date, you may either keep your Paper Certificate of Title for historical purposes or destroy it.
What is transfer duty?
Also known as ‘stamp duty’. This is a state tax levied upon the transfer of property and is payable by the buyer. The transfer duty amount varies from state to state and depends on the value of the property. There are concessions available in certain circumstances that may be available to the buyer, such as a home, or first home concession.
For more information on transfer duty or to determine if you are eligible for a concession, please contact our office.
When is transfer duty payable?
Transfer Duty must be paid within 30 days of the Contract or 30 days of the unconditional Contract date, whichever date is earliest. It can be calculated either as the unencumbered value of a Property or the amount that has been agreed under the Contract, whichever is greater.
What an ATO Clearance Certificate? Do I need one?
Each Seller must obtain a Clearance Certificate prior to Settlement.
The ATO Clearance Certificate is a statement from the ATO confirming that each Seller is not a foreign resident.
How do we apply for an ATO Clearance Certificate?
Applying is easy and there are no fees involved.
Simply visit the ATO’s website and complete their online application form to get things started.
We suggest you apply as soon as possible as there may be a waiting period of up to 28 days.
If you require any assistance, please contact our office.
Do we provide a copy of the ATO Clearance Certificate to our lawyer?
Yes. Once you have received your certificate, please provide us with a copy so we can inform the Buyer. A clearance certificate is provided to the Buyer prior to settlement to confirm that the Buyer does not need to pay part of the purchase price to the ATO for Capital Gains Tax purposes.
What if I cannot obtain an ATO Clearance Certificate prior to Settlement?
If an ATO Clearance Certificate cannot be obtained prior to Settlement, legally the Buyer must withhold the legislated proportion of the purchase price and pay this to the ATO.
How do we release a mortgage on the Property we are selling?
If the property is mortgaged, you should immediately provide your bank with a completed mortgage discharge form. These can usually be obtained online or alternatively you can attend a branch to arrange for the release of mortgage. Ensure that you also provide the contact details of your solicitor so that they can arrange for Settlement on your behalf.
How will rates be apportioned at settlement?
A rates search will be done by the Buyer to confirm the rates owing/paid for the settlement period. A rates adjustment will be made at settlement either in favour of the Buyer or Seller depending on if the currents rates balance is paid. This means you will only be paying the rates for the period of time that you are the owner of the property.
What is the difference between joint tenants and tenants in common?
If you are purchasing property as joint tenants, each party on title will hold an individual interest in the property. The most common example of a joint tenancy is the ownership over a home by a married couple. In this example, joint tenancy comes with the ‘right of survivorship’, which means that in the event of one joint tenant surviving the other, the property automatically passes to the remaining joint tenant and does not form part of the deceased’s estate.
If you are purchasing the property as tenants in common, each person will own a share in the property (i.e. can be 50/50, 70/30, 99/1 or any share as you wish). On the death of one party that share passes to whoever inherits their estate.
The technical term for the transaction of buying and selling property is known as a conveyance. Conveyancing can be a daunting experience, especially if it is your first home. We aim to make the process as smooth as possible and ensure you are in your new home with minimum fuss.
What should I do before I sign a contract?
Once you are ready to put in an offer on a property, you may choose to provide our office with a copy of the contract for our staff to review. Your real estate agent will provide you a copy of the contract upon request. We will review the contract to ensure it is in the correct and most recent template and ensure all special conditions are drafted correctly to guarantee your needs are met.
We will also look for any additional issues that could cause problems to arise throughout the transaction such as the misspelling of names or errors in other critical details.
Is it ok if I have already signed the contract?
It is preferable to contact us prior to signing the contract to ensure that your requirements are met and all details in the contract are accurate. In Queensland it is common for real estate agents to use the REIQ Contract for Houses and Residential Land contract template. This template is produced by the Real Estate Institute of Queensland and drafted in conjunction with the Queensland Law Society. The template is regularly updated and is drafted to provide an equal balance of rights and obligations between the buyer and the seller.
If you have signed a contract and you wish to terminate same, you may be able to terminate if you are still within the statutory cooling off period, which commences the day the contract is dated and remains open for five business days. Dependant upon your contract and the conditions contained in same, you may have rights to terminate on conditions such as Finance and Building and Pest.
If you have any concerns about a contract you have entered into, please contact our friendly staff immediately for specific advice.
What is the finance clause? Should the purchase be subject to finance?
If you are applying for a mortgage from a financier, you should ensure the finance clause in the contract is completed correctly. We recommend a specific financier is not named and the financier is “buyer choice”. This is to ensure your options remain open to you, and that you are not limited by the contract to one financial institution.
A reasonable time to obtain finance should be added to the contract. Note that currently there are extended timeframes for finance approval. This is the case even if you have been granted “pre-approval”. Please talk to your lender before filling in these details or call us for assistance in determining an appropriate time for this condition.
Did you know, not all imperfect building and pest inspection reports mean you may terminate the contract?
If you receive a less than satisfactory building and pest report, save for major damage or structural issues, it can be difficult to terminate a contract. You can’t terminate a contract on the basis of a leaking tap or broken light fitting, so what can you do for minor issues? As a buyer, you can seek that a seller rectifies minor issues prior to settlement, or seek a reduction in the purchase price, relevant to the quoted amount for repairs. This is at the seller’s discretion and the arrangement must be agreed to by all parties.
You should pay attention to such items during your initial inspections and ensure any such issues are resolved before signing a contract.
Contact our office for more information.
Does buying a property at auction comes with a different set of conditions?
Be aware that purchasing a property under the hammer means you may not have the luxury of certain conditions to the contract. In fact, purchasing at auction means the contract will be unconditional. This means, you will not have a statutory cooling off period of 5 business days, the contract will not be subject to a building and pest inspection or finance.
Contact our office for more information and to discuss our fixed fee conveyancing prices.
When do I need to insure my new home?
Did you know, as a buyer when purchasing a new home you are liable for insurance over the property before settlement?
The property becomes at the buyer’s risk from 5pm the following business day after signing the contract. It is strongly advised you arrange insurance over the property, even though settlement is yet to be effected.
In certain circumstances, where damage occurs to a property i.e. fire or vandalism, the contract will be enforced, and you will be required to settle on the damaged property. Call insurers to obtain further information on policies that suit your situation.
What searches do I need to undertake?
As part of our fixed fee conveyancing, the standard searches we will genearlly conduct include a Title search, Registered Plan, Land Tax, Local Rates and Water search.
During the initial conveyancing process, we will provide you with a searches list, outlining searches you can instruct us to undertake on the property. Any additional searches outside the scope of our standard conveyance will incur additional costs.
What is the cooling off period and how does this affect me?
When the Buyer signs the standard Contract of Sale for a residential property they receive a statutory five business day cooling-off period in which they can terminate the contract without providing a reason to the Seller for doing so. If the Buyer elects to terminate during this period the Seller is entitled to keep 0.25% of the purchase price from the Buyer’s deposit. This will not apply in some instances such if the property was purchased at auction. If you have any concerns about the Property or the Contract you have entered into, please contact our office immediately for advice.
What happens if I do not pay my deposit on the due date?
In the standard REIQ, Deposits are commonly due when the Buyer signs the Contract, on a fixed date, a Special Condition or when the Contract becomes unconditional.
If a Buyer does not pay the Deposit to the nominated deposit holder by the due date, they will be in default under the Contract. If a Buyer is in default under a Contract, the Seller may have a right to terminate the Contract.
If you have signed a Contract and have not yet paid the Deposit or will be unable to pay by the due date, please immediately contact our office. We may be able to arrange an extension of time but is at the discretion of the Seller.
When and where do I collect the keys?
Once settlement has been effected, we will notify the Real Estate Agent in writing and request the release of keys. Keys will be collected from the Real Estate Agent unless an alternative arrangement has been agreed between the parties.
What is transfer duty and when is this payable?
Also known as ‘stamp duty’. This is a state tax levied upon the transfer of property and is payable by the buyer. The transfer duty amount varies from state to state and depends on the value of the property. There are concessions available in certain circumstances that may be available to the buyer, such as a home, or first home concession.
Transfer Duty must be paid within 30 days of the Contract or 30 days of the unconditional Contract date, whichever date is earliest. It can be calculated either as the unencumbered value of a property or the amount that has been agreed under the Contract, whichever is greater.
For more information on transfer duty or to determine if you are eligible for a concession, please contact our office.
What is ‘time is of the essence’?
‘Time is of the essence’ is a term that genearlly governs all of the conditions under a standard Contract of Sale in Queensland. Essentially it means that each deadline must be fulfilled by the specified time on the due date. During the conveyancing process in Queensland there are many dates and times that must be adhered to and a failure to comply with these can place you in breach of the Contract and may allow the other party to terminate the Contract or sue for specific performance.
Can we request an extension of time if we are unable to satisfy a condition?
Generally, if you are unable to provide the Seller with confirmation that a condition has been satisfied before 5pm (or the required time) on the due date, then you can instruct us to request an extension of time from the Seller. However, the granting of an extension is at the discretion of the Seller. Depending on the situation, the Seller may grant the extension without penalty or grant the extension subject to specific conditions.
If the Seller is not agreeable to the extension request, and you are unable to satisfy the condition, you will be in breach of Contract and may allow the Seller to terminate or sue for damages or specific performance.
If you are unable to satisfy a condition by the due date, please contact our office immediately.
Should we conduct a final inspection on the property before settlement?
Under the usual conditions used in Queensland, you are entitled to and we strongly recommend you arrange a final inspection of the property before settlement occurs (or you take occupation of the property if you are taking early possession thereof). You should arrange with the Real Estate Agent to inspect the premises on the morning of or day before settlement to check that there has been no damage done to the property since the date of exchange of Contracts (fair wear and tear excepted) and that the Seller has removed all their furniture and belongings from the property. Once settlement takes place, it is too late to find out that some of the inclusions are missing or that something has been damaged.
Purchasing a property with a pool? What does the Seller need to provide?
Depending on the terms of the contract, if a seller has a valid Pool Safety Certificate, a copy must be provided to the buyer prior to settlement.
If there is no Pool Safety Certificate in effect before entering the Contract of Sale, the seller must usually provide the buyer with a Form 36 – No Pool Safety Certificate. Form 36 advises that the pool may not comply and the steps the buyer must take to ensure the pool complies with regulation. A copy must also be provided to the Queensland Building and Construction Commission (QBCC). It is the seller’s responsibility to obtain a Pool Safety Certificate prior to settlement.
Should the seller fail to obtain the Pool Safety Certificate by settlement, the buyer may terminate this Contract and all moneys paid shall be refunded and the Contract will be at an end. The buyer may waive the benefit of this clause.
If the buyer settles the contract without receiving a Pool Safety Certificate from the seller, then the buyer will become responsible at its cost to obtain a Pool Safety Certificate. Buyers will be given 90 days from the settlement date to obtain a Pool Safety Certificate. Once this 90-day period expires, the buyer will face penalties should they fail to obtain the Pool Safety Certificate for the pool. (Your contract may contain different terms, please contact us for specific advice.)
CTS: What searches do I need to undertake?
As part of our fixed fee conveyancing, the standard searches we will conduct include a Title search, Registered Plan, Land Tax, Local Rates and Water search and a Body Corporate Management Certificate.
During the initial conveyancing process, we will provide you with a searches list, outlining searches you can instruct us to undertake on the property. Any additional searches outside the scope of our standard conveyance will incur additional costs.
CTS: What is common property?
This refers to the areas in the building that are owned by the strata scheme. When you buy a strata property you generally own everything inside your unit but not the actual building structure. Common property can include external walls, driveways, gardens, stairwells, roofs, pools, lifts etc. All of the individual owners in a strata property share the responsibility for looking after common property and must abide by the strata rules. The areas that are deemed ‘common property’ vary from one strata scheme to the next, so you will need to familiarise yourself with these when you buy your unit. For example, some may include balcony railings or garage doors.
CTS: What is a body corporate?
A body corporate is a special type of company set up to manage the common property in a complex for a set of units. There is a community management statement which outlines how the body corporate is to be managed. Each unit owner pays fees to the body corporate for the ongoing maintenance of the complex.
From the body corporate fees paid by the unit holders, the body corporate must maintain, manage and control the common property, while also establishing rules and maintaining building and public liability insurance for the common property. The common property will usually include driveways and often the building containing the units.
The unit holders are also required to pay yearly fees into a sinking fund. The body corporate management committee to fund large cost maintenance and capital works when needed retains these fees.
CTS: What are By-Laws?
Each complex has a registered set of By-Laws being the rules and regulations for the complex. These are more specific to each complex and set out the do’s and don’ts over and above the Body Corporate Community Management Act. Owners and residents are required to abide by these By-Laws.
Selling your property to purchase another generally runs smoothly if the process is managed correctly. Hopper Mott Bunting Lawyers will assist in ensuring that the transactions settle simultaneously and corrospond where required. We will do everything we can to ensure the appropriate clauses are in the sale and purchase contract, and that both settlements are completed in a timely manner.
What should I do before I sign a contract to purchase the new property?
Once you are ready to put in an offer on a property please feel free to provide our office with a copy of the contract to review. We provide this service as part of the standard residential fixed price conveyance. The agent will provide you a copy of the contract upon request or we can attend to drafting the contract for you if there is not an agent involved in the transaction. If the agent has prepared the contract, we will review same to ensure it is in the correct template and valid template. At this time, we will also ensure all special conditions are drafted correctly. We will ensure that the special condition requiring any purchase is subject to the sale of your existing property is included if required.
Planning for the future is a vital step in ensuring that your wishes are respected and your loved ones are taken care of. At Hopper Mott Bunting Lawyers we are committed to providing expert legal advice and personalised service in all aspects of wills and estates. Book an appointment with us today to discuss your needs and find out how we can assist you.