KEY TAKE OUTS:
- Every state operates differently in Conveyancing transactions,
- Important deadlines for applicable conditions to be satisfied before the contract will become unconditional.
- Cooling off periods – do they apply and how long are they?
Whether you are purchasing or selling a property, it is important you know and understand how each State and Territory operates. The process of a conveyance differs in all States and Territories. If you are looking to sell or buy in a different state than you live in, then this is the blog for you.
You will note all states and territories apart from New South Wales, their contracts will contain important deadlines where the following conditions must be satisfied, dependent on your circumstances:
- Deposit due date
- Finance due date
- Pest and Building due date
QUEENSLAND
In Queensland the contract is not prepared by a conveyancer / solicitor, it is prepared by the agent.
The contract contains important deadlines and will remain conditional until the applicable conditions have been satisfied. This means you have a right to pull out of the contract if you cannot obtain finance on terms satisfactory to you or if you receive an unsatisfactory pest and building report. These conditions are in addition to a cooling off period, noting the standard timeframe for a cooling off period in Queensland is 5 business days.
VICTORIA
In Victoria, like New South Wales the conveyancer / solicitor will prepare the contract and is prepared quite similar to New South Wales however it will contain an additional document called a Vendor Statement known as a Section 32 statement, this contains further information on the Property.
Victorian contracts also contain important deadlines as mentioned above, depending on your what you require for the transaction. This also means the contract will remain conditional until the applicable conditions have been satisfied. These conditions are in addition to a cooling off period, noting the standard timeframe for a cooling off period in Victoria is 3 business days.
SOUTH AUSTRALIA
South Australia is quite similar to Queensland in the way that the contract is also prepared by the agent. It also quite similar to Victoria as there is an additional document to the contract, this is referred to as a Form 1, this document contains information regarding the property itself, council rates, water rates, special service levy’s ect. The cooling off period will not begin until the Form 1 has been issued the purchaser.
South Australia contracts also contain important deadlines for conditions to be satisfied, depending on your circumstances as mentioned above. This also means the contract will remain conditional until the applicable conditions have been satisfied. These conditions are in addition to a cooling off period, noting the standard timeframe for a cooling off period in South Australia is 2 business days.
WESTERN AUSTRALIA
Western Australia differs the most from the rest of the state’s conveyancing processes however it still has its similarities.
Western Australian contracts like Queensland and South Australia, the agent prepares the contract however this is referred to as an “O & A” meaning offer and acceptance. The way an offer is made is by signing a contract provided by the agent with the price you are willing to pay, and suitable conditions / deadlines agreed to. The agent then takes this to vendor for their consideration. If your offer is accepted, then the Vendor will sign the contract confirming their acceptance.
Western Australia also contains important deadlines for the conditions to be satisfied, depending on your circumstances as mentioned above. This also means the contract will remain conditional until the applicable conditions have been satisfied. However, we note Western Australia DOES NOT have cooling off periods however you can request a due diligence annexure to be added to the contract.
NORTHERN TERRITORY
In the Northern Territory either conveyancer / solicitor or agent can prepare the contract however it is important to note that an agent cannot finalise the contract and exchange it unless this has been approved by a conveyancer / solicitor.
Northern Territory contracts also contain important deadlines for the following conditions to be satisfied, depending on your circumstances as mentioned above. This also means the contract will remain conditional until the applicable conditions have been satisfied. These conditions are in addition to a cooling off period, noting the standard timeframe for a cooling off period in the Northern Territory is 4 business days.
AUSTRALIAN CAPITAL TERRITORY (CANBERRA)
In the Australian Capital Territory has a similar process to New South Wales as usually a solicitor / conveyancer will prepare the contract. Further their cooling off period is a standard 5 business days.
However, in the other states and territories when you enter into a contract, you are agreeing to purchase the land and any dwellings constructed on the land. This is not the case when purchasing in the Australian Capital territory, you are agreeing to enter into a 99-year lease with the Crown being the Government.
TASMANIA
In Tasmania, the agent will prepare the contract as in Western Australia and Queensland. You will also need to negotiate the important deadlines with the agent before signing the contract.
Tasmania is the only state we are unable to assist our clients in due to the fact they are still doing paper settlements.
CONCLUSION:
Each State and Territory have consistencies, however they all have a lot of differences with the way their conveyancing processes operate. As a buyer or seller, these variables can have a major impact on your rights. It is important to understand how the state you are selling or buying in operates.
The Property team at Coutts has lawyers who can act in all interstate transactions, if you are thinking to buy or sell a property that is interstate then you can get all your legal services locally with our property team
ABOUT ALICIA HAULE:
Alicia joined the Coutts team in June 2023 as a Paralegal working within the Wills & Estates and Property Law & Conveyancing teams, from our Narellan office.
Alicia has extensive experience in property law, after working in real estate for three years and has almost obtained her Real Estate Licence.
For further information please don’t hesitate to contact:
Alicia Haule
Paralegal
info@couttslegal.com.au
1300 268 887
Contact Coutts today.
This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.
