FAQ Conveyancing
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Conveyancing
Conveyances are like zippers. They look simple but require precision engineering to function well. Also, because properties are highest value assets in most people’s lives and most people aren’t used to that financial pressure, buying and selling can bring out the worst in people. An experienced lawyer will carefully guide you through the conveyancing process itself but their real strength is knowing how walk through the minefield to head off or manage disputes if the other side becomes unreasonable and unpredictable.
Conveyancers streamline the legal process of buying or selling property to give you the best chance of a smooth property transfer from the seller to the buyer. There’s a lot of moving parts including: 1. making sure contracts are correct and binding 2. doing searches for outstanding debts and managing zoning questions 3. communicating with the buyer, seller, agent(s), banks, Queensland Revenue Office for stamp duty and local councils 4. Managing key date deadlines including deposits, finance approvals and settlement date and 5. making sure the right funds are transferred and the legal documents are lodged to transfer ownership.
Solicitors can give legal advice because they’ve studied law and gain practical experience before they can open their own firm. In Queensland, a conveyancer can’t give legal advice and they must be supervised by a lawyer. That’s because in Queensland, conveyancing doesn’t require any qualifications. Lawyers must be insured and in Queensland, a conveyancer can’t get their own insurance. Conveyancers are often very cost-effective at handling the routine work of conveyancing.
Solicitors can give legal advice because they’ve studied law and gain practical experience before they can open their own firm. In Queensland, a conveyancer can’t give legal advice and they must be supervised by a lawyer. That’s because in Queensland, conveyancing doesn’t require any qualifications. Lawyers must be insured and in Queensland, a conveyancer can’t get their own insurance. Conveyancers are often very cost-effective at handling the routine work of conveyancing.
Contact your local lawyer or conveyancer as soon as you decide to buy or sell a property, ideally before signing the contract. Some contracts look deceptively simple, but even small changes can be expensive, time wasting traps. For a normal contract, that initial check only takes about five minutes. Of course a 100 page off-the-plan contract needs a more intensive review. Special conditions written by agents can lead to very unexpected and expensive challenges.
Engage a good property lawyer to review your contract. Sign the contract correctly so it’s binding. Pay the (initial) deposit so you’re not in breach of contract. A cooling off period (chance to do some searches) may apply.
Conditions
Book the Building and Pest inspection as early as possible and negotiate any challenges.
Arrange loan approval from lender and check with lawyer to make sure unexpected conditions are manageable. Immediately (generally) order searches when unconditional.
Settlement
Your lawyer will guide you to make sure ID has been checked and all the conveyancing documents are correct. Work with lawyer and lender to make sure the right amount of money is in the right accounts at the right time.
Prepare electronic settlement workspace, calculate stamp duty and prepare to settle. Settlement is the process of making sure the lenders are ready to provide funding and release the mortgage so the ownership can be transferred.
Engage lawyer to review contract. Make sure disclosure statement is correct if there’s a body corporate. Sign contract correctly so it’s binding. Work with the lender to prepare the release of mortgage.
Conditions
Negotiate any buyer Building and Pest challenges. If buyer finance is approved, work with lawyer and lender to make sure the loan is able to be released at settlement.
Settlement
Settlement is the process of making sure the lenders are ready to provide funding and release the mortgage so the ownership can be transferred. Prepare electronic settlement workspace and prepare to settle. When all documents are correct and funds are received from the buyer, hand over the keys.
The essential documents are the signed contract of sale, Proof of Identity (original passport or driver’s license), Finance Approval or pre-approval, Building/Pest Inspection Reports (if applicable), Deposit Receipt, Stamp Duty Declaration, Title Search Documents, Insurance Details (if required before settlement). Your conveyancer will assist with most of these documents and to make sure they are correct well before settlement.
The essential documents are the signed Contract of Sale (the agreement between you and the buyer), proof of Identity (original passport or driver’s license), mortgage discharge authority – If applicable, to discharge any existing mortgage, rates notices (Recent council and water rates notices) and Strata/Body Corporate Records if the property is part of a strata scheme. Your conveyancer will assist with most of these documents and to make sure they are correct well before settlement.
In Queensland, the conveyancing process typically takes between 4 to 6 weeks, but it can vary depending on the complexity of the transaction and the parties involved. Here’s a general overview:
Contract signing to settlement: Around four weeks if all conditions (like finance approval and inspections) are met quickly. Cooling-off period: If applicable, this is a 5-day window for the buyer to change their mind after signing. Delays: Issues like financing, inspections, or title searches may extend the process. Your lawyer and conveyancer will provide specific timeframes based on your specific conveyance.
Settlement is the final step in the conveyancing process, when the transfer of property from the buyer to the seller happens. It usually takes four to six weeks after the contract is signed.
Here are the key events at settlement: 1. Transfer of Funds: The buyer pays the balance of the purchase price (minus the deposit) to the seller’s nominated account 2. Discharge of Seller’s Mortgage: If applicable, any outstanding mortgage is paid off 3. Transfer of Title: The legal ownership is transferred to the buyer, and the property transfer is lodged with the Titles Office 4. Handover of Keys: The buyer receives the keys to the property. Your lawyer and conveyancer guides you carefully so all legal and financial aspects are completed correctly for a smooth settlement.
Missing the settlement date in a conveyance can trigger multiple complications including 1. Breach of Contract Missing the settlement date will likely be a breach of contract. The seller may have the right to cancel the contract, potentially resulting in the loss of the deposit (may be claimed by the sales agent) 2. Penalties and Interest You may be required to pay penalties or interest for the delay, especially if the delay is caused by the buyer’s failure to secure funds or meet conditions 3. Legal Action The seller may sue the buyer to enforce the contract or claim damages for the delay. It’s critical to communicate with your lawyer and conveyancer early if you see any issues arising, so they can negotiate with the seller to see if an extension or other arrangements are possible.
In Queensland, the cooling-off period for property transactions is (generally) five business days after the buyer (or their lawyer) receives the fully signed contract. During this period, the buyer can cancel the contract for any reason, but they must notify the seller in writing. However, the seller may be entitled to a 0.25% penalty of the purchase price if the buyer ‘cools off’ from the contract. Some contracts may not have a cooling off period (purchase at auction) or if cooling-off is waived.
Yes, the cooling-off period can be waived if the buyer signs a specific cooling-off waiver before they sign the contract. It’s not recommended because it makes the contract immediately binding without the option to cancel during the cooling-off period.
In Queensland, the legal requirements for a property sale include:
1. the sale must be documented in a formal contract, detailing the terms and conditions, which must be signed by both the buyer and seller.
2. the seller must disclose certain information, such as property defects, rates, and encumbrances
3. the buyer (generally) is responsible for paying stamp duty
4. If the seller has a mortgage, it must be discharged before or at settlement, ensuring the property is free from encumbrances
5. Settlement includes the transfer of funds and ownership occurs at settlement, with legal documents, like the transfer of title, lodged at the Titles Office. Your solicitor and conveyancer will assist you with these requirements.
A Contract for Sale of Land in Queensland is a legally binding document between the buyer and seller that outlines the terms for transferring ownership of property. Key elements of the contract include:
🔹 Disclosures: The seller must disclose information about the property, such as rates, encumbrances, or defects.
🔹 Property Details: Address and legal description of the land.
🔹 Sale Price: The agreed price for the property.
🔹 Deposit: Typically 10% of the purchase price, paid upfront.
🔹 Settlement Date: The date when the transfer of ownership and payment will occur.
🔹 Conditions: Any conditions like finance approval or building inspections.
🔹Cooling-Off Period: A 5-day period where a (residential) buyer may be able to cancel the contract (with some exceptions). Cooling off rights come from legislation, rather that the contract itself.
The contract is usually prepared by a real estate agent. We strongly recommend that you contact your solicitor or conveyancer to make sure the contract complies with Queensland property laws.
Property contracts are (generally) legally binding if:
Compliance with Queensland Law
The contract must comply with the Property Law Act 1974 (Qld).
Property contracts must be in writing
Contracts for the sale of land must be in writing and signed by both parties.
Essential terms must be included
The contract must clearly state:
🔹The buyer and seller details
🔹The property description
🔹The purchase price
🔹Any special conditions (e.g., finance approval, building and pest inspections)
🔹The settlement date
Signed by both parties
The contract must be signed by both the buyer and seller (or their legal representatives).
Deposit Paid (If Required)
While a deposit is not legally required, paying a deposit can be an indication that both parties intend to proceed.
Cooling-off period applies (unless waived)
In Queensland, residential property buyers have a 5-business-day cooling-off period after signing, unless they waive this right.
The Real Estate Institute of Queensland (REIQ) plays an important role in the conveyancing process by influencing industry standards and providing guidance to real estate professionals. Here’s how REIQ contributes:
Agents trained by REIQ are more likely to understand standard legal requirements and be able to guide buyers and sellers.
Standard Contracts & Forms REIQ collaborates with the Queensland Law Society (QLS) to develop standard property contracts, commonly used in residential and commercial property transactions. These contracts are compliant with Queensland property laws and include key clauses covering finance, building inspections, and settlement terms. If you’re buying or selling an existing property (not ‘off-the-plan’), most contracts are based on the REIQ standard contract, ensuring fairness and compliance.
A conveyancing settlement statement is a detailed financial document prepared by a solicitor or conveyancer showing a breakdown of all the costs and adjustments involved in the final settlement of a property transaction. It’s purpose is to make sure the buyer and seller are paying or receiving the correct amounts on settlement day.
It shows the purchase price, accounts for any deposit paid, shows prorated water, rates and body corporate fees (and land tax if applicable). The total is the balance payable by the buyer at settlement for the property.
An accurate settlement statement lets the buyer and the seller know exactly what is payable and receivable. This will include amounts to pay out the seller’s loan. For buyers, their settlement figures will also include stamp duty, Titles Office fees, legal fees and searches.
A property title search in Queensland
- is a legal check of the official records held by the Queensland Titles Registry to confirm details about a property’s ownership and any encumbrances.
- Verifies that the seller is the legal owner of the property and has the right to sell it.
- Lists any mortgages, caveats and (most) easements registered on the title that may affect ownership or use of the property.
- Shows Caveats and Covenants. A caveat means someone else has an interest in the property (e.g., a pending legal dispute). Some properties have restrictions or covenants that limit how they can be used or developed.
A conveyancing settlement statement is a detailed financial document prepared by a solicitor or conveyancer showing a breakdown of all the costs and adjustments involved in the final settlement of a property transaction. It’s purpose is to make sure the buyer and seller are paying or receiving the correct amounts on settlement day. It shows the purchase price, accounts for any deposit paid, shows prorated water, rates and body corporate fees (and land tax if applicable). The total is the balance payable by the buyer at settlement for the property. An accurate settlement statement lets the buyer and the seller know exactly what is payable and receivable. This will include amounts to pay out the seller’s loan. For buyers, their settlement figures will also include stamp duty, Titles Office fees, legal fees and searches.
In some circumstances you may be able to change your mind.
Cooling off
For residential property, if buyer’s haven’t waived the Cooling-Off period there may be a 5-business-day cooling-off period after signing the contract. The cooling-off period (generally) starts the day the buyer receives a signed contract. If the buyer cancels, they may lose 0.25% of the purchase price as a penalty.
Conditions
Generally, if the contract includes conditions (e.g., finance approval, building & pest inspection), you can withdraw if those conditions are not met within the timeframe specified AND you’ve complied with the terms of the contract.
Seller breach
If the seller fails to meet their obligations (e.g., doesn’t provide clear title or fails to settle on time), the buyer may have the right to terminate.
By agreement
The buyer and seller can agree to terminate the contract.
Misrepresentation
If the seller misrepresents the property or there are undisclosed legal issues, you may have legal grounds to cancel the contract. If you’d like to change your mind and withdraw from your contract we strongly recommend you obtain expert legal advice to avoid giving the other party the right to sue you.
If either the buyer or seller breaches the contract (assuming a Real Estate Institute of Queensland property contract) there can be serious legal and financial consequences. Buyer contract breaches include: Failing to pay the deposit by the due date, not settling on time (i.e., fail to pay the balance on settlement day) and wrongfully attempting to terminate the contract. There can be many other breaches of contract. Consequences for the Buyer include:
🔹 Loss of Deposit – The seller may be entitled to keep (forfeit) the deposit.
🔹 Termination of the Contract – The seller can terminate and relist the prop
🔹 Legal Action for Damages – The seller can sue for financial losses, including loss in property value if they have to resell at a lower price.
🔹 Penalty Interest – If the buyer delays settlement, they may have to pay penalty interest (assuming the seller doesn’t choose to terminate and sue them).
If either the buyer or seller breaches the contract (assuming a Real Estate Institute of Queensland property contract) there can be serious legal and financial consequences. Seller contract breaches include: Failing to settle on time (e.g., don’t provide clear title or required documents), wrongfully refusing to settle, failing to make required repairs or misrepresent the property and selling the property to someone else after signing a contract.
Consequences for the Seller
🔹 Buyer Can Terminate – The buyer can walk away and claim their deposit back.
🔹 Legal Action for Damages – The buyer can sue for costs, including additional accommodation expenses or price differences if they have to buy another property at a higher price.
🔹 Specific Performance Order – The court may force the seller to complete the sale.
It’s possible, but it’s like flying a plane without taking lessons. So you can, but it’s not recommended unless you have strong legal and property knowledge. If you can confidently answer the question ‘What are the top five catastrophic issues which commonly arise in conveyances?’, you’re ready to do your own conveyance.
Why you might consider handling it yourself
To save money on conveyancing fees (typically $800.00–$2,000.00). If you have strong experience with property transactions and understand Queensland property laws.
Challenges of DIY conveyancing
🔹Legal Complexity: Property transactions involve legal documents, contracts, and compliance with Queensland property laws. Mistakes can be costly.
🔹Title and searches: You’ll need to conduct title searches, check for easements, encumbrances, and land use restrictions.
🔹Contract Review: Understanding the terms, conditions, and potential risks in the contract of sale is crucial to avoid losing the property and expensive lawsuits.
🔹Stamp Duty and Fees: You must calculate and lodge stamp duty correctly with the Queensland Revenue Office to avoid penalties (can be more than the stamp duty).
🔹Settlement Coordination: Managing all parties at settlement, settlement calculations, ensuring correct payments are processed, and liaising with banks can be stressful, time consuming and fraught with errors and delays.
🔹PEXA Individuals won’t have access to the PEXA platform so will have to engage a PEXA agent to assist with their conveyance.
Bottom Line
While it may be legally possible to handle your own conveyancing, most buyers hire a conveyancer or solicitor to avoid errors, delays, and legal issues.
To check if a Queensland property has any legal issues before you buy it, you need to conduct due diligence. Here’s how you can do that:
Conduct a title search
Obtain a title search from the Queensland Titles Office to check:
Ownership details (ensure the seller is the legal owner).
Encumbrances including financial or legal claims, such as mortgages, Easements (restrictions on land use, such as shared driveways) and
Caveats (claims by third parties that could affect ownership).
Check for Council and Zoning Issues
Contact the local council or conduct a zoning search to verify:
The property’s zoning (e.g., residential, commercial, mixed-use).
Any development restrictions (what can/can’t be built on the land).
Whether the property is in a flood-prone or bushfire-risk area.
Any outstanding council approvals (unapproved structures may cause legal issues).
Conduct a Property Search for Outstanding Debts
Rates and water search: Ensures there are no unpaid council rates or water charges.
Land tax clearance search: Checks if land tax is owed on the property.
Body corporate records search (for units/townhouses): Reveals unpaid levies or disputes.
Order a Building and Pest inspection
A licensed inspector can check for: Structural issues (cracks, subsidence, faulty construction), Pest infestations (e.g., termites, which can be costly to fix) and Unapproved modifications (illegal extensions may need to be removed).
Review the contract of sale carefully
Ensure there are no unusual conditions that could disadvantage you.
Check if the contract includes warranties about the property’s condition.
If buying at auction, be aware that there’s no cooling-off period.
Search for government planning and infrastructure projects
Check if there are any future developments (e.g., highways, rezoning) that could impact the property.
You can search Queensland government planning portals for infrastructure projects.
Verify compliance with building and safety standards
Ask for certificates of compliance for past renovations, pools, or extensions.
Ensure safety features (e.g., pool fences, smoke alarms) meet legal requirements.
Consult a Lawyer or Conveyancer (Recommended)
If any issues arise from your searches, a conveyancer or solicitor can advise on the legal implications.