Residential Buyer’s Checklist

When purchasing a property in QLD, there are a few steps involved that you should be familiar with before starting this journey.

Step 1: Determine your budget

The first step towards homeownership involves a little introspection. You need to look at your finances and determine what you are planning in the years ahead and how much you can afford to repay. We recommend you speak with your bank or broker before spending too much time looking at property, as they can help determine your affordability and reduce waiting times during the contract.

Step 2: Finding your home

Now that you know your budget (or better yet, have pre-approval for a home loan), it’s time to determine how much ‘home’ your budget will buy you and in which suburbs you can afford to live. The real estate section in newspapers, online, and real estate agents are all useful sources of the pricing information. Once you have settled on an area, you should tell a few real estate agents what you are looking for.

Step 3: Making an offer

Once you have found a property that you love and can afford, it is time to approach the selling agent to make an offer. The buyer’s offer is then presented to the Sellers by the real estate agent, and the Seller will then decide whether or not they accept the offer to purchase. Upon accepting the offer and conditions, the real estate agent will prepare the sales contract and present this to the buyer. It is during this time we recommend the buyer engage a conveyancer to act on their behalf. The conveyancer will be provided with a draft of the proposed contract and can advise on the terms of the contract, your obligations, and whether or not you require any special conditions.

Step 4: The Deposit

Once the Seller has accepted the offer, the Buyer must pay the deposit. The due date for payment of the deposit is specified in each contract, but generally, the deposit will be payable upon signing the contract. It is an essential term of the contract that the deposit is paid when due.

Step 5: Fulfill your obligations

Insurance

The terms of a standard contract state that the property is at the Buyer’s risk from 5:00 pm the day after the contract date. It is important to organise appropriate insurance as quickly as possible.

Finance

The residential contract used in Queensland will typically be subject to finance. This means you will be given a certain amount of time to organise a loan on satisfactory terms.

Building and Pest

If your contract is subject to a Building and Pest inspection, then you will have the right to have the property inspected by a licensed building inspector at your own cost, who will provide you with a report of their findings.

Transfer duty

Buying property in Queensland is a dutiable transaction, which means that Transfer Duty will be payable. Your conveyancer will be able to tell you how much duty is payable on your purchase and whether or not you eligible for any concessions or grants. They will also facilitate the payment of the transfer duty.

Step 6: Preparing for settlement

Now that you have obtained satisfactory finance and are happy with your Building and Pest report, your conveyancer will liaise with your lender to ensure that sufficient funds are available for settlement. Under the terms of the standard contract, you will have the right to a final inspection to ensure that the property has remained in the same condition as initially inspected. This is arranged through the real estate agent.

Enjoy the feeling

Congratulations, you are now the proud owner of your new home. Buying your first home is a major achievement, and it involves time and effort.

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