Does GST apply to the price of an existing residential property?
No. GST is not generally apply to the purchase price of residential properties that are not new (whether for investment or owner occupation), where the property is occupied as a residence.
Does GST apply to the price of newly constructed residential property?
GST applies to the cost of new residential property purchased directly from a developer and is included in the price for the construction of a new home. The application of the "margin scheme" may significantly reduce the GST payable.
Is stamp duty still payable on the purchase price of property?
Yes. Stamp duty is still payable on the purchase price of a property. If the price of the property includes GST (such as in new residential premises) then stamp duty is payable on the GST inclusive price.
What happens if there are more than one offer on a property?
When a seller is to be presented with multiple offers, a prudent agent will inform prospective buyers of that fact in writing and obtain a written acknowledgement. This gives potential buyers an opportunity to submit an offer if they have not already done so, or to revise an existing offer that has not yet been accepted by the seller.
Real estate agents have an obligation under the Property Agents and Motor Dealers Act 2000 to submit all offers that comply with the seller’s instructions to the agent. Exceptions occur when, for example, the seller instructs their agent not to submit offers under a certain dollar figure.
Agents also have a statutory obligation to attempt to get the highest possible price for the seller. The law further requires that agents be fair to buyers.
What is a covenant?
A covenant is a promise executed under a seal whereby one party promises to another that something has or will be done. For example, restrictions in canal estates on the building of jetties and placement of pontoons.
What is an easement?
An easement is a right to use the land of another. The most common of easements are usually rights of way.
What is an encumbrance?
An interest or right in real property which may diminish the value of the land but does not prevent transfer or ownership. Encumbrances include covenants, easements or caveats.
What is freehold or fee simple?
Owners of property have a fee simple or freehold estate which is the highest form of ownership. An owner can use the land in any way desired subject to the usual environmental, building zoning, mining and other controls.
What is group title?
A system of land title similar to freehold title except the title also includes an element of common property owned jointly and therefore must involve a body corporate.
What is strata title?
A system of land title based on the horizontal subdivision of air space. The most common form of strata title is home units.
What is zoning?
The legal control of the use of land as prescribed by the local government or any other planning authority. In Queensland, zoning or legal land use is regulated by the Integrated Planning Act.
