If you have any questions please call us on 4639 0333 and one of our experienced conveyancing lawyers will guide you through the process so that you get it right the first time. 

Q:        I signed a Contract to purchase a house in Toowoomba although settlement will not occur until 1 July 2008.  The current owners live at the Coast so the house is vacant.  I want to do some work (landscaping) before I move in.  However, the owners are refusing to grant me access.  Are they allowed to do this?

A:         If you purchase a property by signing an REIQ Contract, the Contract allows you to access the property, once to read any meters, once for pest and building inspections, once to inspect the property before settlement and once to value the property before settlement.  If you wish to access the property for any reason other than these, you should have included a specific provision in the Contract to enable you to do so.

Q:        My son and his girlfriend are looking at purchasing a home together.  Neither of them has ever owned a house before.  They are looking at houses in the price range of $300,000.00 to $330,000.  How do we calculate the stamp duty payable?

A:         Your son and his partner will be entitled to a First Home Owner’s Transfer Duty Concession if the property they purchase is valued at $320,000 or less.  Above that price, the duty payable will vary depending upon the value of the house they choose.  If the property is valued at $330,000, their duty would be $550 - so it’s worthwhile for them to  understand this when house-hunting.

Q:        I am looking to sell a property I own which is currently rented.  What happens if the new owner does not want the tenants to stay?  Am I restricted to selling to someone who is looking to buy a tenanted property?  The tenants’ lease has 8 months to run.

A:         Any lease of residential property that is for a fixed term cannot generally be broken by the landlord until the end of the term unless the tenant has either breached the lease or the landlord can establish undue hardship if the lease is not terminated early.  The tenant can also agree to terminate the tenancy early.  However, there is no way to compel the tenant to do so.  A periodic tenancy (eg a week to week tenancy) can be terminated by giving the tenant Notice to Leave.  If you are intent on selling a rented property then you need to plan the sale well in advance to determine the type of buyer you intend to market to.  Your real estate agent should be able to assist you with the appropriate marketing strategy.

Q:        I am looking to purchase a home and am really keen on two properties.  I was thinking of signing a contact on each place so that no one else can get in before me and then making a decision which one I really want.  I would then terminate the other contract during the cooling off period.  Do you think this is a good idea?

A:         It is true that a contract can be terminated during the cooling off period.  It is important to remember the cooling off period is only 5 days.  In theory, your idea is a good idea but does come at a cost.  If you terminate the contract during the cooling off period, the seller may retain 0.25% of the purchase price from your deposit.  On a $250,000 house, this will equate to an amount of $625.  Perhaps you are better to make your decision before signing any contract.

Q:        I have been looking at buying a unit off the plan at Broadbeach.  The Agent said I do not have to settle until December 2009 and do not have to pay any deposit.  They only require a Banker’s Guarantee for $75,000.00.  I have never heard of this before.  What is a Banker’s Guarantee?

A:         A Bank Guarantee is an undertaking by your bank to make payment up to a certain limit to the seller of the unit development should you fail to pay the deposit.  We are seeing more and more Banker’s Guarantees, particularly in developments at the Gold Coast.  As it is a potential liability to the bank, they will usually require some kind of security such as cash or a mortgage to protect themselves in the event moneys are paid under the Guarantee.  There are also usually fees and charges payable to the bank for the provision of the Guarantee.

Q:        I am looking to sell my commercial premises in Toowoomba.  The building was constructed in the early 1970s.  The people who are looking at it have asked me for my Asbestos Report.  I don’t have one.  Should I?

A:         The Workplace Health and Safety Regulations require compliance with the Code of Practice for the management and control of asbestos in workplaces.  There is a requirement to comply with the Code from 1 January 2008.  Essentially, the Code requires the owner of premises to have those premises checked for the presence of asbestos materials by a person qualified to identify asbestos materials.  A report is issued as to the result of this process.  If asbestos is present, there are a range of other requirements set out in the Code including the need for an asbestos management plan.  The buyer will normally require a copy of the asbestos report to be provided prior to settlement.

Q:        I am in the process of buying a house and the seller is a company.  I am doing the conveyancing myself.  Are there any extra searches I should be doing?

A:         There are many searches you can do when purchasing a property.  Some searches are essential.  Other searches will be dictated by the type of property, its location and the level of protection you wish to provide to yourself.  If the seller is a company, you should also do a company search.  This will show whether the company is subject to any fixed or floating charges against the company.  If there is a charge and you fail to ensure it is released at settlement, you run a risk that, if the charge is enforced, you will be forced to defend some costly litigation.