Residential Property Buyers FAQ (Queensland)

# Frequently Asked Questions for Queensland Property Buyers

Buying property in Queensland can be complex. Here are answers to the most common questions we receive from our conveyancing clients.

Finance Conditions

What happens if my finance condition is not satisfied by the due date?

If your finance condition is not satisfied by the condition due date, you have two options:

1. Request an extension – You may ask the seller (through your solicitor) for an extension of time to obtain finance approval. The seller is not obligated to agree, but many sellers will grant reasonable extensions, particularly in a slow market.
2. Terminate the contract – If finance is not approved and no extension is granted, you can terminate the contract in writing before 5pm on the condition due date. You will be entitled to a refund of your deposit.

Important: If you do not terminate the contract properly and on time, the contract may become unconditional, meaning you could lose your deposit if you cannot settle.

What should I do if my loan approval is delayed and won't be ready by the finance condition due date?

Act early. As soon as you become aware that your finance approval may be delayed:

1. Notify your solicitor immediately – We can request an extension from the seller's solicitor on your behalf.
2. Follow up with your broker/lender – Understand the reason for the delay and obtain a realistic timeframe for approval.
3. Provide any additional documents – Lenders often request further documentation. Respond promptly to avoid further delays.
4. Consider your options – If an extension is refused, you may need to consider terminating the contract to protect your deposit.

We recommend requesting an extension at least 2-3 business days before the condition due date to allow adequate time for negotiation.

Building and Pest Inspections

What do I do after I receive my building and pest inspection report and find issues?

If your building and pest report identifies defects or issues:

1. Review the report carefully – Distinguish between major structural defects, safety issues, and minor cosmetic items.
2. Assess the severity – Major issues (structural damage, active termites, asbestos, significant water damage) may justify termination. Minor issues are normal in most properties.
3. Obtain repair quotes – For significant defects, obtain quotes from licensed tradespeople to understand the cost of rectification.
4. Negotiate with the seller – You may request the seller to:

• Rectify the issues before settlement
• Reduce the purchase price
• Provide a credit at settlement

1. Make a decision – If the defects are unacceptable and the seller won't negotiate, you can terminate the contract in writing before 5pm on the condition due date.

Pro tip: Schedule your inspection early – at least 3-5 business days before the condition due date – to allow time to review the report, obtain quotes, and negotiate if needed.

What happens if my building and pest condition is not satisfied by the due date?

Similar to the finance condition, if you are not satisfied with the building and pest inspection results:

1. Terminate the contract – You must provide written notice of termination before 5pm on the condition due date. Your deposit will be refunded.
2. Request an extension – If you need more time to investigate issues or obtain quotes, you can request an extension from the seller.
3. Proceed unconditionally – If you're satisfied with the property despite minor issues, the contract becomes unconditional after the due date.

Settlement Process

What is settlement and what happens on settlement day?

Settlement is the legal completion of your property purchase. On settlement day:

• Your lender releases funds to pay the seller
• The seller's mortgage (if any) is discharged
• The property title is transferred to your name
• You receive the keys and can take possession

In Queensland, most settlements occur electronically through PEXA. You don't need to attend – your solicitor handles everything.

When do I get the keys?

The real estate agent will typically release the keys once they receive confirmation that settlement has been completed. This usually occurs within 1-2 hours after settlement, but can sometimes take longer depending on the agent's availability.

Deposits and Payments

How much deposit do I need to pay?

In Queensland, the standard deposit is 10% of the purchase price, typically payable:

• Initial deposit upon signing the contract (often $1,000 - $5,000)
• Balance of deposit within 5-14 days (varies by contract)

The deposit is held in trust by the real estate agent or seller's solicitor until settlement.

What happens to my deposit if the contract falls through?

This depends on why the contract ended:

• Contract terminated under a condition (finance, building & pest) – Full deposit refunded
• Buyer defaults (fails to settle without valid reason) – Seller may retain the deposit and sue for damages
• Seller defaults – Deposit refunded and buyer may claim damages

Transfer Duty (Stamp Duty)

How much transfer duty will I pay?

Transfer duty in Queensland is calculated on a sliding scale based on the property value. As at 2024:

Concessions available:

• First Home Concession – significantly reduced or no transfer duty for eligible first home buyers
• Home Concession – reduced rates for owner-occupied properties

When is transfer duty due?

Transfer duty must be paid within 30 days of settlement. However, most buyers pay it at settlement as part of the settlement funds.

First Home Buyers

What grants and concessions are available for first home buyers in Queensland?

1. First Home Owner Grant (FHOG) – $30,000 for new homes or $15,000 for substantially renovated homes (subject to eligibility)
2. First Home Concession – No transfer duty on properties up to $700,000, with a sliding scale up to $800,000
3. First Home Guarantee – Federal government scheme allowing purchase with as little as 5% deposit without paying Lenders Mortgage Insurance

Foreign Buyers

Do I need FIRB approval to buy property in Australia?

If you are a foreign person (including temporary visa holders), you generally need approval from the Foreign Investment Review Board (FIRB) before purchasing residential property. There are significant penalties for non-compliance.

We recommend seeking advice early in your property search to understand your obligations.

Contact Us

If you have questions about your property purchase or need assistance with conveyancing, please contact our team:

Phone: +61 7 3117 9433 Email: info@baystonelegal.com

This information is general in nature and should not be relied upon as legal advice. Please contact us for advice specific to your circumstances.