4 Key things to know as a first home buyer

First home buyer Sunshine Coast

Posted on 21 July 2022

Buying your first home? here's what you need to know!

Buying your first home is undoubtedly one of the most exciting and stressful decisions you can make. Navigating the possible legal pitfalls can be worrying for even the most seasoned home buyer. Our guide is designed to help you understand the conveyancing process in Queensland.

Conveyancing is the legal transfer of property from one party to another. Conveyancing in Queensland is complex and is affected by at least 20 different pieces of State and Federal legislation, contract conditions, extensive case law and practice guidelines. So, it’s easy to see why contacting a solicitor is crucial to ensure the property is transferred correctly. DIY conveyancing is simply too risky and can easily result in hidden costs, defaulting on your obligations, disputes and overall just a minefield for the untrained individual.

Getting the contract underway

Once the contract has been signed by the Buyer and the Seller, the conveyancing process begins. Your real estate agent will generally forward the contract to your solicitor, who should review and explain the elements of the contract to you, making known possible issues, conflicts with timelines, conditions of the contract and your rights and obligations during the process.

Keeping track of the key dates

Now that you have the contract, it’s time to ‘satisfy the conditions’. Put simply, this is where you satisfy your obligations of the agreement.

For example, here are the standard conditions you may find in your contract:

Contract date – This is the date that all parties signed the contract. Often keys dates will be calculated from this date. (For example, you may find that your contract is conditional on finance being approved within 21 days from the contract date).

Cooling-off period – In Queensland, there is a statutory cooling-off period of five (5) business days for when purchasing a property which is not sold at auction. This means if you’re not totally happy, you can cancel the contract during this time. But beware, you will be charged a penalty of 0.25% of the purchase price for doing so.

Initial Deposit and/or Balance Deposit – This is the day you have agreed to make a partial payment towards the property.

Finance – In the scenario that you are approaching the bank for a loan to purchase the property, a finance clause gives the Buyer time to seek finance approval before making the contract unconditional.

Settlement – Its settlement time! This is the day that the buyer and seller have agreed to transfer their interests in the property.

Fees at settlement

Buying a home can be an expensive process and there are a number of adjustments and fees which may need to be factored into the settlement costs of the purchase. Here are just a few costs to be aware of:

a. Adjustments for prepaid water rates;

b. Adjustments for prepaid Council rates;

c. Adjustments for Body Corporate fees (if buying in a unit block);

d. Insurance;

e. Building and Pest Inspection (if you decide to order one);

f. Transfer Duty;

g. Searches;

h. Legal fees; and

i. Registration fees.

Not to worry! Your solicitor will prepare a ‘Settlement Statement’ which outlines all of the adjustments and fees at settlement, so you are fully aware of the costs before settlement day.

Settlement Day

Settlement is the day you get the keys to your new home! This is an exciting day for any buyer. Before you crack the champagne and schedule the removalist, make sure you have conducted a pre-settlement inspection and made arrangements for the collection of keys. Remember, settlement of a property is full of many moving parts and can often be delayed, so make sure you speak with your Solicitor before making arrangements to move into the property to avoid any disappointment.

What happens on settlement day?

Your solicitor will liaise between all parties including the Seller’s Solicitors and the banks to “effect settlement”, either this will physically happen in person with lots of paper shuffling and cheques changing hands, or it will happen online.

Once the solicitors have officially settled your matter, you can pick up the keys to your new property!

Take the stress out of buying and let Omnia Legal handle the details for you. We are more than just property experts, we are here to assist you in all your family, business, and commercial matters.

This article provides general information on legal topics for educational purposes only, and should not be considered legal advice or recommendations. While we have taken care to ensure accuracy, Omnia Legal is not responsible for any errors, and makes no guarantees about the accuracy or completeness of the information. Links to third-party websites do not constitute an endorsement, and we are not liable for any damages that may result from using inaccurate or incomplete information. It's always best to seek legal advice for specific situations.

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