Childers QLD Conveyancers
- Our Legal Practice Director has over 12 years experience across different areas of conveyancing in Childers QLD
- We are PEXA (electronic conveyancing) subscribers
- Over 500 successful property transactions since 2016
Residential, Commercial & Rural Conveyancing: Service Details
Our Childers conveyancing lawyers can help with all stages of Queensland property transactions whether you are buying or selling a home, unit, vacant block, strata title, commercial real estate or rural property, and including:
- Legal advice specific to property contract law
- Drafting and reviewing contracts
- Auction Contracts and purchases off-the-plan
- The cooling off period and deposits
- Water allocation transfers
- Commercial property including leases
- Liaison with financial institutions in regard to mortgages and discharges of mortgages
- Execution of contracts and settlement
- Adjustments to the purchase price in regard to rates and allowances
- Preparing and registering Powers of Attorney
Contact us for more information or to arrange an appointment.
Make sure you’re protected with a contract review
Before you sign anything, make sure you have a lawyer review the contract for you. Our team will make sure you know all the ins and outs so you’re not signing something with hidden clauses or unwanted surprises.
If you don’t have the contract yet, that’s ok. Our team can still talk you through your options and even contact the agent on your behalf to get it for you.
Understanding Commercial Conveyancing in Childers QLD
The commercial conveyancing process involves the various steps through which the title to commercial property is transferred from a seller to a buyer. It begins with negotiating the contract of sale and continues until the transfer has been appropriately registered.
Most commercial contact transactions are managed by conveyancing lawyers who can expedite the process and minimise financial risk. Although some experienced builders may be tempted to go-it-alone to save on costs, they do so at their own peril.
The six steps of the commercial conveyancing process
The commercial conveyancing definition is the transfer of legal ownership from one person to another. Naturally, this process involves several steps for it to be legally binding. The commercial conveyancing process moves through six phases. Briefly, these are:
- The execution of the contract of sale;
- Review of searches and removal of conditions;
- Financing;
- Preparation of settlement figures;
- Settlement; and
- Post settlement matters.
Sales contract
In the first phase of the commercial conveyancing process, the seller’s real estate agent or solicitor will generally prepare the contract of sale, setting forth the description of the property, price, warranties and other terms and conditions. The buyer’s solicitor should then review the contract and negotiate any changes before the parties sign and the buyer pays the deposit. This is known as the “exchange of contracts.”
During a “cooling-off” period, a buyer may elect to withdraw from the contract, forfeiting 0.25 percent of the purchase price, but without legal penalty. Many sellers ask purchasers to issue a section 66W certificate to waive or shorten the cooling-off period.
Although this is the rule in New South Wales, not all States and Territories observe this cooling-off period, so it is important to consult with your solicitor on this point.
Searches and inspections
Most contracts are contingent on the satisfaction of certain conditions concerning financing and a variety of property searches. These searches are typically ordered by the purchaser. In NSW, the property searches include a title search, zoning search, strata plan search and a historical search. The buyer’s obligation is not fixed until the conditions specified in the contract are satisfied.
Financing
Many buyers arrange for financing or commercial loans, if the project is to be financed, as a first step in the commercial conveyancing process. Some law firms, because of existing affiliations, may be able to expedite this process. Make sure that the firm you work with is accredited with a wide range of lenders.
Pre-settlement matters
The purchaser of the property is entitled to a pre-settlement inspection, generally arranged by the purchaser’s agent. If the property is sold with vacant possession, the seller must ensure that the premises are empty, clean and tidy at the time of settlement.
If the purchaser is not satisfied with the condition of the property, he or she can delay settlement until the matter is resolved. Neither party, however, can terminate the contract immediately for such a breach.
Final settlement figures may not be available until the day of settlement, but both solicitors should keep the parties apprised of costs throughout the period of representation. Before settlement, purchasers will prepare and finalise settlement figures and cheque details before arranging a time and location.
Settlement
At settlement, buyer, seller and lender exchange important legal documents and the remaining purchase price is paid. In addition to the buyer’s and seller’s attorneys, representatives of the mortgagee will attend to receive the final payment on the mortgage or to secure their rights on the new mortgage. In NSW, the insurance risk passes from seller to purchaser at settlement or possession (if that occurred prior to settlement).
Post-settlement matters
Immediately following settlement and after all purchase money is received, keys and other access devices, including garage remotes and security alarm codes, are delivered to the buyer.
Thereafter, relevant authorities must be notified of the change in ownership and Transfer documents lodged with the Land Titles Office. This final step in the commercial conveyancing process is often done by the buyer’s lending institution.
The Difference between residential and commercial conveyancing
While there are many similarities between residential and commercial conveyancing – that necessary legal process for transferring ownership from seller to buyer – there are also some important differences, which we’ll address in this article.
Key differences between residential and commercial property
While it’s more common for Australians to have the experience of investing in residential property, either to live in or rent out, than owning commercial property, the latter investment is often considered more attractive because it can result in higher yields (return relative to purchase price), better cash-flow and a broader variety of asset choices and purchase prices, among other advantages.
But compared with residential property, purchasing a commercial asset is usually a more complex process, requiring more extensive due diligence and a larger initial deposit. Some of the risks inherent in commercial property investment include the asset’s over-reliance on wider economic conditions (to keep or attract a tenant/s, for example) and the higher costs for repairs and maintenance.
Residential property conveyancing
In terms of conveyancing, when selling a residential property an experienced solicitor can help you with the disclosures to the buyer required by law, including the obligation to provide a pool safety certificate or notice of no pool safety certificate if the property has a pool; any encumbrances affecting the property; and if the property is recorded on the contaminated land or environmental management register. Information about the body corporate must be provided to the buyer if the property is a townhouse or unit. A seller must also inform the buyer on whether the property has compliant smoke alarms and an approved electricity safety switch.
Failure to provide these disclosures before settlement can provide the buyer with the right to terminate the contract and claim for compensation from the seller.
These days, contracts for residential property sales are fairly straightforward, the Real Estate Institute of Queensland (REIQ) and Queensland Law Society offering a standard contract for the conveyancing of this type of property.
Legal advice should still be sought so that the standard contract can be amended to address your individual circumstances. This might include clauses which deal with the fact the purchase depends on the sale of an existing property; that the property is not subject to flooding; and that the sellers hold and have complied with all necessary statutory approvals. Obtaining an independent valuation of the property is also vital before you sign the contract.
Commercial property conveyancing
By contrast, conveyancing of commercial property is generally a lengthier process which includes investigation of permitted uses of the land, the details of commercial leases, land tax implications, zoning, and much more.
The most time consuming part of the conveyancing process for commercial property is the due diligence required to investigate whether there are any claims on the property, titles, encumbrances, environmental notices or other issues which might impair the seller’s ability to transfer title to a willing buyer.
While in Queensland these investigations are the responsibility of the buyer, the seller of commercial property is advised to conduct their own title search and property investigation. Why? To avoid any liability for non-compliance should the buyer’s investigation turn up any issues regarding property and land regulations and laws.
Another important issue to consider in the conveyancing of a commercial property is GST, which is payable on the purchase of this type of property. An extra 10 per cent on the property’s purchase price should be factored in, which can potentially be claimed back later as an input tax credit if you’re an investor.
Generally speaking, a larger deposit of about 30 percent of the property’s value is required to secure approval for a commercial property mortgage, with lenders offering a maximum loan-to-value ratio of 70 per cent.
While residential property lease arrangements are quite standard, most terms of a commercial lease agreement are negotiated between the tenant and landlord and unique to their arrangement. Therefore, where the commercial property has a tenant already in place, it’s essential to have a solicitor look over the existing lease before agreeing to buy the property, particularly if you’re unfamiliar with commercial leases. Options, rent increases, and which party is responsible for the property’s ongoing expenses are all matters addressed in commercial leases which a prospective buyer should be aware of. This process should also include background research on the tenant’s financial situation. Should a tenant declare bankruptcy and the property is suddenly without a tenant, the property’s value will be adversely impacted.
Where the property is vacant with no current tenant, it’s important that the conveyancing process ensures any new proposed use of the property is compliant with permitted use and other zoning regulations.
Your conveyancer must also create the contract of sale based on mutual consideration for the purchase; ensure payment of fees (land tax, water consumption charges, fees, rates, governmental regulations, etc.); undertake negotiations with their financiers to make certain that their prerequisites are satisfied pre-purchase; and oversee final settlement of money and documents.