The Buying Process
Ready to buy some real estate in Queensland? We have gathered all the resources you need to make an informed and smart decision.
Buying property in Queensland
There can be a lot involved in finding the right property to buy in Queensland. Selecting the right suburbs for your family, finding the right property type for your needs, knowing how much to pay and actually finding a property in your set budget can be overwhelming for many.
Gem Property Co work closely with buyers to find the best possibly choices to match your vision. Our guide to Buying property in Queensland below will explain what is involved in each step of our property purchase process.
Preliminaries
Contract negotiation, the parties negotiate and sign a contract for the sale of the property. As a buyer, when negotiating the terms of the contract, it is important that you consider:
- The purchase price.
- The deposit amount and the timeframe for payment – can you comply?
- Would you like any chattels to be included in the sale (i.e., televisions, microwaves, fridges or artwork)?
- Are there any fixtures to be excluded from the sale?
- Are there any tenants in the property and if so, are you happy with the terms of the lease?
- Remember, if a tenant has a valid lease, you cannot force the tenant to vacate the property until the end date of the lease.
- Are there any title encumbrances such as easements registered over the property? If so, will this encumbrance unsatisfactorily hinder your use and enjoyment of the property?
- Do you require the contract to be subject to you obtaining satisfactory finance?
- Do you require the contract to be subject to you obtaining a satisfactory building and pest inspection report?
- Do you require the contract to be subject to you obtaining a satisfactory pool safety inspection (this is only usually required if there is a pool on the property that does not have a current pool safety certificate)?
- Do you require the contract to be subject to any other conditions (i.e. subject to selling your existing property)?
- What is the settlement date? (date that you must pay the balance purchase price in exchange for possession of the property) Is this a sufficient timeframe for you & your financier?
- Has your conveyancer looked over the contract prior to signing? Although its not a requirement, we would recommend any buyer have their conveyancer peruse the contract before signing off on your offer.
Formation of Contract
- The agent draws up the contract (ensure you provide them with all the above information you have considered, so that they can include it in your contract).
- The buyer signs contract first, usually these days via electronic signatures .
- The offer is then presented to the sellers who will peruse and have the option of having their conveyancer peruse. If the sellers agree with all terms they will sign the contract.
- The contract documents will most likely be signed electronically, which does not require each page to be initialled or a witness to sign.
- Once both sides have signed, the agent will then date the final contract and it will be processed by the agent in their system and dispersed to both sides and both parties’ conveyancers (if they have been appointed).
- The buyer has a five-business day cooling off period from the date the seller signs the contract (if it is a residential property).
Between Contract & Completion
- Once the buyer appoints a solicitor, the solicitor will order the necessary searches for the buyer and peruse them and advise you on your rights, once you sign the relevant searches form and return it to the solicitor with authority to act form and buyer’s questionnaire.
- The solicitor will then advise you of any conditions that you or the seller need to meet and ensure all contract conditions are satisfied when they fall due.
- The buyer will need to contact their lender/broker as soon as possible and advise them of the solicitor they have chosen.
- If the contract is subject to any inspections, the buyer will need to arrange these inspections.
- The inspections that buyers are entitled to, depending on the contracts conditions are a building and pest inspection and a bank valuation. Another inspection is available for any required meter readings.
- It is recommended that buyers attend the building and pest inspection with the agent, to ensure they are fully informed on the property and can talk through any concerns with the inspector present.
- Once the offer is unconditional, the solicitors will prepare for settlement.
- The solicitors will work with your lender to confirm the amount being borrowed and that they are ready to settle and prepare the settlement statement which shows the total funds required from the buyer at settlement.
- Buyers have a right to a pre-settlement inspection prior to settlement with the agent. A pre-settlement inspection is usually conducted by the buyer 1-2 days prior to settlement in the presence of the agent. The purpose of the pre-settlement inspection is to ensure that the property is in the same condition as when the buyer contracted to purchase it and that any included chattels remain at the property.
- It is important that you remember to act in a timely manner throughout the buying process. Remember that the seller is not obliged to agree to any extension of any due date under the contract and may have rights to terminate the contract, take your deposit and pursue legal action if do not comply with your obligations under the contract by the date required.
Completion
- The solicitors attend to settlement and advise the buyers when settlement is completed.
- Generally, the agent will hold the keys for the property until settlement has occurred. Both parties’ solicitors will notify the agent once settlement has occurred and authorise the agent to release the keys. Please note, only once the agent receives written authority to release keys, can they hand keys over. Generally this takes an hour to two hours after settlement is booked.
- Where necessary, the solicitors will attend to any post settlement requirements.
After Completion
- The buyer’s solicitor (or lender if finance is required) attends to registration of transfer, with the buyer becoming the legal owner upon registration.
- Notification of the change of ownership is given to the relevant government departments.
- As the new owner of the property, now is the time to ensure the utilities are changed over into your name, update your mailing address and redirect any deliveries.
