- Property settlement
- Buying process
- Real estate tips
As an experienced buyer’s agent in Brisbane and the Gold Coast, I understand that navigating the property settlement process can be daunting, especially for first-time buyers. However, with the right knowledge and support, it can be a smooth and rewarding experience. In this article, we’ll delve into the intricacies of property settlement, covering essential steps, some real estate tips, and explaining how a buyer’s agent can assist you every step of the way.
1. Cooling-off Period.
In Queensland, buyers typically have a 5-business-day cooling-off period during which they can withdraw from the purchase if they change their mind or are not completely satisfied. The cooling-off period begins the day the buyer receives a copy of the signed contract (excluding weekends and holidays) and ends at 5pm on the final day. If a buyer wishes to terminate the contract on this condition, they must give written notice to the seller or their agent before the deadline.
Please note that a cooling-off period does not apply to properties purchased at auction, or private treaty contracts made within 2 days of an unsuccessful auction where the buyer was a registered bidder.
If the buyer cancels within this period, the seller must refund the deposit within 14 days, with a possible deduction of up to 0.25% of the purchase price as a penalty. The cooling-off period can also be waived or shortened by giving written notice to the seller or their agent.
Real Estate Tips for buyers:
Use the cooling-off period to thoroughly review the contract, conduct final inspections, and ensure you’re entirely comfortable with the purchase decision.
2. Building and pest inspection
Standard contracts typically allow buyers a 7-14-day window to conduct a building and pest inspection, with costs averaging $550-750 in Brisbane and $450-700 on the Gold Coast. It’s important to note that for auction purchases, this inspection must be completed before the auction date.
Engaging professionals for a thorough inspection is vital to uncover hidden property issues. Reports from these inspections can sway your decision to proceed with the purchase or negotiate repairs with the seller.
Interpreting building and pest reports, especially for the older housing stock found across Brisbane and the Gold Coast, can be challenging without professional guidance.. For example, homes throughout South East Queensland often have far more going on beneath the surface than first appears, which is why having an experienced buyer’s agent to help interpret findings and negotiate practical outcomes is invaluable.
If reports reveal significant defects, buyers can request price reductions, repairs, or contract termination. However, it’s essential to act reasonably, and be prepared that you may need to provide copies of the inspection reports to the seller if you want to terminate the contract. Otherwise, buyers need to notify their solicitor by the due date that they are satisfied with (or prepared to waive) the building and pest inspection.
Contractual considerations:
- Inspection reports must be conducted by licensed professionals.
- Sellers are not obliged to address identified defects, although negotiations are common.
- Sellers can terminate the contract if notice is not given by the due date.
Real estate tips for buyers:
- Avoid relying solely on seller-provided reports due to potential conflicts of interest, lack of completeness, and limited legal protection, and prioritise peace of mind through independent inspections.
- It is best to factor in the cost of future repairs when making an offer, rather than relying on negotiating a discount afterwards
- Recognise that standard building and pest inspections may not cover electrical, plumbing, or pool inspections.
- Removing the building and pest inspection clause exposes buyers to significant financial risks.
- Be wary of agents who pressure buyers to waive inspection clauses, as this can expose buyers to significant risk
- Whenever possible, attend inspections in person to gain better insight and understanding rather than relying on written reports.
3. Obtaining financial approval
A finance clause allows the buyer a specified period (typically 14 days) to secure finance for the property. If the buyer fails to secure financing within the designated timeframe, they have the option to terminate the contract without penalty and have deposit monies refunded in full.
Buyers need to notify their solicitor that they have obtained finance approval and are satisfied with the terms of that approval by the due date. They can otherwise request an extension on finance (if they require more time). Beware that if the finance clause lapses, the seller is able to terminate the contract.
Real estate tips for buyers:
- Obtain a formal pre-approval before you begin your property search to improve your negotiating position and expedite the process once a contract is signed.
- Allow sufficient time for your bank to perform a valuation of the property. This may require a physical inspection of the property, which can take some time to arrange (especially if it is tenanted).
- For investment property purchases, you will generally need to provide a rental appraisal for the property, which your buyer’s agent can assist with.
4. Conveyancing
Conveyancing involves the legal transfer of property ownership from the seller to the buyer. Given its complexity and technical nature, it’s crucial to engage experienced legal and financial representatives capable of effective communication. As buyer’s agents, we can offer recommendations for suitable practitioners. There is also a number of optional searches which can be performed, so important to have a buyer’s agent who can provide some guidance in this regard.
Costs for conveyancing vary significantly depending on the type and number of searches that are performed, but are typically in the $1700-2200 range
Real estate tips for buyers:
- Have the contract reviewed by your solicitor prior to signing, especially where the contract is not a standard format or where special conditions have been added.
- Ensure timeframes are met, or extensions sought prior to important deadlines.
5. Satisfying special conditions
Some contracts may include special conditions that need to be satisfied before settlement, such as due diligence clauses, body corporate searches, review of tenancy documents, subject to sale, or repairs being performed. It’s essential to fulfil these conditions within the specified timeframe to avoid delays.
6. Pre-settlement inspections
Before the settlement date, buyers have the opportunity to inspect the property one final time to ensure it’s in the same condition as when they agreed to purchase. This is also the opportunity to make sure any agreed-upon inclusions remain in the property. Any discrepancies should be addressed before settlement occurs.
Real estate tips for buyers:
There is no requirement for sellers to have the property professionally cleaned, so additional cleaning may be required before moving in
7. Deposit Monies
Buyers are generally required to pay a deposit when purchasing property. The deposit amount can be negotiated, but is typically around 5% of the purchase price. The deposit is generally divided into two payments. An initial deposit of around 0.25% of the purchase price paid upfront, and the balance is paid when the contract becomes unconditional.
The deposit is held in a trust account (usually by the sales agent or seller’s solicitor) until settlement, and is deducted from the total purchase price
Real estate tips for buyers:
- Check your transfer limits to make sure you can make required payments on time.
- Ensure the contract provides enough time (1-2 business days) to allow the funds to clear in the trust account before the deadline.
- Fraud avoidance. Be absolutely certain that the account details are correct before transferring money, as real estate fraud is becoming increasingly common.
How a buyer's agent can help in the property settlement process
1. Expert guidance
A buyer’s agent provides expert guidance throughout every stage of the settlement process, including recommending and coordinating a team of professionals, including conveyancers, building inspectors, mortgage brokers and property managers, making sure that everything proceeds smoothly and your interests are always the number one priority.
2. Negotiation skills
Negotiations extend well beyond determining the price and contract terms. As buyer’s agents, we will also negotiate on your behalf when it comes to the outcome of building and pest inspections, other contract conditions, and negotiating the fees and services of property managers.
3. Due diligence
Conducting thorough due diligence is crucial to avoid costly mistakes. A buyer’s agent can help coordinate building and pest inspections, help organise additional searches and identify any potential red flags.
4. Navigating legal processes
Property transactions involve complex legal processes that can be overwhelming for buyers. A buyer’s agent works with experienced conveyancers or solicitors, from whom we can seek legal advice.
5. Dispute resolution
If issues arise during the property settlement process, such as delays or disputes, a buyer’s agent can act as a mediator and advocate for your interests, minimising stress and ensuring a favourable outcome.
Frequently Asked Questions:
While real estate agents represent sellers, buyer’s agents work exclusively for buyers, providing unbiased advice and advocacy throughout the buying process.
Buyer’s agent fees vary depending on the services provided and the complexity of the transaction. However, many buyers find that the benefits outweigh the costs, especially when navigating competitive markets. To view our fees schedule click here.
Property settlement delays can happen for a range of reasons. Finance taking longer than expected, paperwork issues or last-minute legal matters are some of the most common. When this occurs, it can be frustrating, especially if you have plans tied to the settlement date.
A buyer’s agent can help by coordinating communication between all parties, flagging issues early and working towards practical solutions that reduce disruption where possible.
Preparing for settlement properly is one of the best ways to avoid delays. Having an experienced buyer’s agent involved means nothing is left to chance, from checking documentation through to managing timelines and expectations. It gives you expert guidance throughout the property settlement period, so you know what’s happening and why, right through to final handover.
Settlement day is when the property officially becomes yours. Once all final checks are complete and funds have cleared, ownership is transferred, and you can take possession of the home. On the day, you will usually:
- Pay the remaining balance of the purchase price
- Have the property title transferred into your name
- Exchange documents that are outstanding
- Receive the keys
- Take legal possession of the property
Your buyer’s agent can help coordinate the process and keep you informed as the settlement is completed, so there are no surprises, and you know exactly when everything is final.
Stamp duty, also known as land transfer duty in Queensland, is a state government tax payable by both home buyers and investors when a property changes ownership. It is typically one of the largest costs involved in a purchase, which is why it’s important to factor it into your numbers early, not just at settlement.
The amount payable depends on the purchase price and how the property will be used, such as owner-occupied or tenanted. First-home buyers may also be eligible for concessions, which can significantly affect the final figure.
If you’d like help understanding the costs involved in buying a house in Brisbane and the Gold Coast, we’ve put together an article that breaks down the main fees and common expenses. You can read it here.
Property settlement done right with Your Property Hound
Understanding the property settlement process puts you in a far stronger position as a buyer. When you know what to expect, when decisions need to be made and where risks can arise, the process becomes far more manageable.
If you’d like support navigating your purchase or want to talk through what settlement might look like in your situation, getting advice early can help you move forward with clarity and fewer surprises.
Or call us on 0422 303 103