Steps in the conveyancing process are as follows:-

1. Preliminaries
• Inspection of the property;
• Negotiation (a real estate agent usually acts as an intermediary);
• Usually no solicitor is involved at this stage; and
• Vendor should disclose defects in title.

2. Formation of the Contract
• Real estate agent usually draws contract;
• Purchaser signs, pays deposit & then the contract is delivered back to vendor; and
• Vendor signs & a copy of the contract is provided to the purchaser.

3. Between contract and completion
• Purchaser goes to a solicitor (if a solicitor is used);
• Purchaser or their solicitor investigates title, searches various departments & a survey may be conducted;
• Any objections to title are delivered;
• Transfer documents are delivered to vendor;
• Purchaser or their solicitor attends to stamping contract; and
• Adjustment of outgoing worked out.

4. Completion
• If search results are satisfactory, the purchaser pays balance purchase money & the vendor hands over duplicate certificate of title (if there is one) & all documents necessary for registration & the keys for the property.

5. After completion
• Purchaser (or their lending institution if finance is required) attends to registration of transfer, with the purchaser becoming the legal owner upon registration; and
• Notification of the change of ownership is given to the relevant government departments.

Solicitors generally start to get involved in the conveyancing process from stage 2.

Stage 1
When you choose an agent, you have some doubt about the agent. Please contract Property Agents and Motor Dealers division of Fair Trading Department (Qld) to find out whether he or she is a licensed real estate agent.

In the State of Queensland, Real Estate agents' conducts are bound by the Property Agents and Motor Dealers Act 2000 (Qld). The agent or/and vendor has ethical obligations to deal fairly with the purchaser. The main duties and obligations are as follows:-

You have some doubt about purchase price: you should contact an independent valuer to confirm the market price.

You want to purchase a property for the purpose of taxation: you should consult with an accountant and obtain information such as depreciation rates.

If you are not an Australian citizen, there are some restrictions on ownership created by Commonwealth Government Law.

Stage 2
Before the purchaser signs the contract, the purchaser should have consulted with a solicitor.

In Queensland, the Real Estate Institute (REIQ) has developed Standard Contracts of Sale which cover a range of provisions that are helpful to both the Seller and Purchaser. For example, the following matters are covered in the Standard Contract:-

• Address and Description of Property,
• Whether pot plants, gardening equipment, wall clocks etc are included,
• Whether there is any existing tenant,
• Purchase Price,
• Deposit,
• Date of Settlement,
• Whether the Contract is subject to finance,
• Building and Pest Inspection Reports.

Can you include other terms into the Contract?
Both the Purchaser and Seller can include Special Conditions, as long as the other party agrees to the conditions.

Special Conditions may be very helpful in certain situations. Here are some examples:-

• The Sale is Subject to Seller Obtaining Finance Approval to Purchase Another Property.
• Contract to Purchase Land is subject to the Local Council Approving Re-Zoning.
• Seller to Remain as Tenant After Settlement.
• Sale by Estate of Deceased Person.
• Use of Car Space in Building Complex.
• Exchanging Facsimile Copy of Contract.
• Responsibility for Pool Fencing.
• Responsibility to Carry out Building Work.

Stage 3
Finance Clause
If the contract is subject to finance, the relevant parts in the Standard Contract must be completed fully. If the contract is not subject to finance, the parts in the Standard Contract should not be completed.

Care needs to be taken in deciding the finance approval date to allow sufficient time for the bank to process the application for approval. Plus, although approval for finance might be given by a bank, the approval may be subject to certain conditions which are unattractive. For this reason, it is wise to check the full conditions of the bank before giving formal notification that finance has been approved.

Building and Pest Inspection Reports
It is common practice for a purchaser to consider building and pest inspection reports. If a building inspection report reveals substantial defects, then the purchaser can terminate the contract, within the time period allowed under the Contract.

Time of the Essence
Traditionally, all Contracts for real estate in Queensland contain a clause that provides that time “shall be deemed to be of the essence”. This means that all time limits imposed by the Contract (for example, the time limit for obtaining finance approval) must be strictly observed. The failure of either party to strictly observe the time limit may result in the other party being in a position to terminate the Contract or claim that the other party has failed to perform its obligations under the Contract.

Although time limits can be extended, by the agreement of both parties, care should be taken when setting the time limits in the Contract. The time limits should be realistic to allow sufficient time for the steps to be undertaken (for example, for finance approval, sufficient time should be allowed for the discussion and investigation with the bank).

If I am overseas or unable for other reasons, can an agent sign the Contract on my behalf?

In this situation, you should make a legal Power of Attorney. This would operate to give authority for a trusted person in Queensland to act on your behalf and sign all necessary paperwork. Such authority could be limited to a specific task (for example, only for the purpose of selling your unit at Surfers Paradise) and can be terminated at any time.

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