The Cooling-Off Period: What are my rights?
The standard 5-day cooling-off period gives residential property buyers a safety net to cancel the contract if they change their mind. It starts the day the buyer receives a copy of the contract signed by both parties even if received after 5pm and ends at 5pm on the fifth business day. If the contract is received on a weekend, it starts on the next business day.
- The Catch: Cancelling isn’t entirely free.
- The Penalty: Sellers can retain a termination penalty of 0.25% of the purchase price from your deposit.
- Auctions: This cooling-off period does not apply if the property is sold at an auction.
For more information please see our Cooling-Off Period Guide.
Subject to Finance and Building and Pest: Standard or Special Conditions?
Under a standard REIQ contract, the “Subject to Finance” and “Building and Pest” clauses act as vital safety nets. They allow buyers to legally pull out of a transaction and recover their full deposit if conditions are not met.
- Finance: Buyers must take all reasonable steps. If the lender rejects the application before the specified due date, the buyer can terminate the contract if the standard terms are used and more than one attempt is made to be safe.
- Building & Pest: This makes the contract subject to licenced inspector report on terms satisfactory to the buyer who can terminate the contract or renegotiate the price based on their report. Some special conditions restrict this right to structural flaws, severe termite damage, or safety hazards.
- Strict Deadlines: The buyer must notify the seller in writing by 5:00 PM on the exact due date stated in the contract, or risk being in default.
For more information please see our Finance and Building and Pest Guide.
Conveyancer vs. Solicitor: Do I need a lawyer?
In Queensland, independent or unlicensed conveyancers cannot operate legally on their own. All paid conveyancing work must be conducted or directly supervised by a qualified lawyer or law firm.
- Lawyers handle the entire legal transaction, interpret complex circumstances or case law, and provide formal legal advice if a dispute arises.
- Paralegals / Conveyancers within a law firm can manage day-to-day administrative paperwork under a solicitor’s guidance.
- Protection: Using a law firm ensures you are protected by proper supervision, professional indemnity insurance and legal professional privilege.
Property Searches: What checks are performed?
A solicitor orders standard searches to ensure you are buying exactly what is advertised and that there are no hidden legal liabilities including:
- a mandatory title search and registered plan search to convey the correct property;
- a mandatory land tax, rates and water search to make the correct adjustments to the outgoings;
- other searches requested from the attached Searches List prepared by our compulsory Queensland legal insurer or Seller Disclosure Statement.
Insurance Before Settlement: Who is responsible?
A unique aspect of Queensland property law is that risk passes to the buyer early. The property is legally at the buyer’s risk from 5:00 PM on the next business day after the contract date.
- Immediate Action: The buyer must organize building insurance immediately after signing. Do not wait for the settlement date.
- Seller’s Duty: The seller still has a legal obligation to “use the property reasonably until settlement”, so they still have certain obligations to maintain the property in the meantime.
For more information please see our Insurance Before Settlement Guide.
How much transfer duty do i have to pay (and when)?
Buying property in Queensland triggers a state tax known as transfer duty (formerly stamp duty). According to the Queensland Revenue Office (QRO), this tax is calculated based on the property’s purchase price or market value, whichever is higher.
Key Summary of QRO Guidelines:
- Lodgement Timeframes: You or your solicitor must lodge your contract and transfer documents with the QRO for assessment within 30 days of the contract becoming unconditional.
- Concessions: Generous tax reductions are available via the QRO. The Home Concession applies if you move into the property as your primary residence within one year of transfer. The First Home Concession can completely eliminate transfer duty for first-time buyers on homes valued up to specific thresholds and the Vacant Land Concession can do the same for land.
- Foreign Acquirers: If you are a foreign person, company, or trust, an Additional Foreign Acquirer Duty (AFAD) of 8% applies on top of standard rates.
To get an accurate assessment for your specific transaction, use the official Queensland Revenue Office Transfer Duty Calculator.