Conveyancing is simply the transfer of property from one person or entity to another and needs to be undertaken whenever someone sells, buys or transfers property. There are a number of steps that must occur to successfully transfer ownership of the property and adequately protect the interests of buyer and seller. msl | michael sing lawyers has experience in all facets of conveyancing and can provide you with a trouble free title transfer, whether you are buying or selling your property.
What happens if legal problems arise during the conveyancing process?
The benefit of using msl is that you have the confidence in knowing there is a full-service law firm behind you. If any legal problems do occur during the conveyancing process, you will have a team of experienced solicitors available to provide you with any assistance you may require.
Costs
How much does conveyancing cost?
Conveyancing has two costs involved. The first is the professional fee that is charged at a fixed price (get a conveyancing quote). The second cost is for disbursements and government charges (see more details below). Unlike other conveyancers, msl does not charge extra for sundries such as photocopying, telephone calls or couriers.
What are disbursements/outlays?
Outlays, also known as disbursements, are monies paid out to obtain information about the property from local and state authorities. Usual outlays include Title Searches and Property Information from Councils and Government Bodies.
What government charges are incurred when purchasing property?
Transfer duty Transfer duty is a tax imposed by the Queensland State Government on the purchase of property, payable by the buyer. It is determined by the purchase price of the property.
Registration Fees You will also pay a fee for registering the property in your name to the Land Titles Office.
First Home Owners Grant
What is the 'first home owners grant' and how does it work?
A first home owners grant is available to first home owners and is administered and funded by the state government. The grant of $7000 is available from 1 January 2010 to eligible first home owners.
This is where all parties come together to complete the transaction. The parties that attend settlement are the seller and buyer's representatives, the bank that is providing the buyer’s loan and the bank whose mortgage is being discharged. At settlement, documents and cheques are exchanged between all parties, once good title has been established and all parties are satisfied, settlement is deemed to have been effected.
Do I need to attend settlement?
No. msl will arrange for a settlement agent to attend this on your behalf. We will advise you once settlement has been completed.
Foreign Property Investor
I am a foreign person living in Australia on a valid temporary resident visa. Do I need approval to buy a property?
No, go ahead and buy. Provided you qualify for the temporary resident exemption, you don’t need FIRB approval, for any contract to purchase property entered into after 18 December 2008. If you buy second hand residential real estate, you must use it as your principal dwelling.
I do not hold a temporary resident or permanent resident visa. Can I invest in Australian residential property?
Yes, you can buy in some categories, provided you have obtained FIRB approval. For example, approval for purchase of new dwellings or single blocks of vacant land where a property is constructed within 24 months is likely to be given. You can hold them or rent them. If you sell, FIRB guidelines will apply to your sale of second hand real estate. Approval for purchase of second hand real estate is less likely. For more information, please contact our Gold Coast conveyancing and Brisbane conveyancing team.
I am a foreign student living in Australia. Can I buy a second hand house to live in as my principal dwelling? Is there a maximum price I can buy to?
Yes, you can buy and there is no restriction on price. Approval is likely to be given to the purchase of a property where the student is over 18 years of age, studying at a recognised tertiary institution and where the student holds a student visa valid for the next 12 months, and where the residence is near the university.
I control a foreign owned company trading in Australia. Can I buy second hand real estate for use of my staff?
Yes. Approval is likely, provided the houses are used as dwellings for Australian based staff and provided the company gives an undertaking that it will sell or rent the property if it is expected to remain vacant for six months or more. There is no limit on the number of houses that may be bought.
I am a foreign national and was recently told that I would not need approval if I bought real estate through an Australian incorporated company or unit trust. Is this true?
No. Foreign nationals need approval to buy residential real estate. Use of an Australian trust or company structure will not affect this outcome. Australian incorporated companies or trusts where 15 per cent or more of the shares or units are beneficially held by foreign persons are themselves considered to be "foreign”. 40% if 2 or more persons not ordinarily resident in Australia hold an aggregate interest.
I am not exempt and want to purchase a property at auction. The contract will be auctioned on an unconditional basis. Can I ask for FIRB approval before the auction?
Yes. If you submit your application at least 5 business days before the auction, FIRB will consider your application and advise you before the auction. For more information, please contact our Gold Coast conveyancing and Brisbane conveyancing team.
Self-Managed Super Funds
How does my self-mananged super fund purchase a property?
The self-managed super fund chooses the property to purchase and a Contract of Sale is entered into by the Property Trustee. The self-managed super fund obtains loan approval, pays deposit, balance purchase money (less the amount borrowed), legal costs, and stamp duty in the normal way. On completion the self-managed super fund borrows from the Lender and the property Trustee mortgages the legal title to the property to the Lender. The self-managed super fund then manages the asset in the usual way.
What paperwork is involved?
Property Trust Deed under which the Property Trustee holds the property as trustee for the SMSF. Contract for Sale to purchase the property (entered into in the name of the property trustee). Loan Agreement between the Lender and the self-managed super fund . Mortgage over the property between the Lender and the Property Trustee. Personal Guarantee by members of the self-managed super fund
Can fund members occupy the property?
No. If fund members or related persons occupy the property, the “in-house asset rule” will have been breached. However, the self-managed super fund can buy property that the members intend to live in after retirement.
Are there any other restrictions?
The self-managed super fund must comply with all regulations applying to superannuation funds. They must also ensure that the level of investment in real property is in line with the fund investment strategy. There is no specific prohibition on 100% of the funds total assets being in real property, but the self-managed super fund may not be able to meet its diversification requirements under such a strategy. For more information, please contact our Gold Coast conveyancing and Brisbane conveyancing team.
Who pays what and when?
The self-managed super fund is responsible for paying all the usual overheads that any investor would expect to pay. For example: - council rates, water rates, and land tax (if any); - interest and other loan repayments; - the Lender’s fees; - repairs; - property management costs; and - insurance premiums. How can I sell the property?
The self-managed super fund can direct the Property Trustee to enter into a contract for sale of the property to any third party. On settlement the mortgage loan is paid out.
What happens when the loan is paid out?
The self-managed super fund is entitled to have the legal title transferred to it. This transfer should be possible without incurring tax, GST, or stamp duty liabilities (other than nominal).
Who can be the Property Trustee?
The Property Trustee must be a separate entity from the self-managed super fund Trustee. It is possible, but not desirable, for an individual member of the self-managed super fund to act as a Property Trustee due to trust law issues regarding the merger of the interests of the trustee and the beneficiary. It is recommended that a special purpose company be registered to act as Property Trustee.
