After you sign a contract of sale for the purchase of a property, one of your first tasks will be to find a property lawyer to manage the conveyancing process for you. When you’re ringing around various law firms to get a quote on this conveyancing you will often hear the term ‘searches’; but what are these searches?
The term ‘searches’ refers to a variety of various property searches designed to find out if there are any problems with the property or the seller that would have a material effect on the buyer. The aim is to ensure the property, is exactly as described to the buyer when they signed the contract, is free from defects and is able to be sold by the seller.
In Queensland there are many searches which can be conducted, some of them are a requirement of the transaction, while others are optional and only necessary if you have a particular concern about the property or its location. Most buyers will only undertake the standard searches in order to save costs, however it is worth considering undertaking the extra searches as you have to remember that you are spending hundreds of thousands of dollars on the property and a search that costs less than $100 can save you a lot more down the track.
Standard Property Searches in Queensland:
Some of the standard property searches that are conducted as part of the conveyancing process in Queensland include:
- Title Search:
- This search details all of the specifics of the property, including its identifiers, its true owner and any encumbrances that exist over it.
- Registered Plan:
- This search provides you with a copy of the plan for the property, showing its position in the street and the size and shape of the land.
- Contaminated Land Search:
- This search will tell you whether the property is included on the Queensland Government Contaminated Land Register and if so whether it was previously a mine, dump, or other operation that involved hazardous substances.
- Land Tax Search:
- This search will tell you if the seller owes any land tax on the property. It is essential to determine this as if this tax is not paid prior to settlement, it will pass onto you the buyer, as the new owner.
- Bankruptcy/Company Search:
- This search will tell you whether the seller is bankrupt/wound up, as if so, they are not able to hand over ownership of the property to you without the Official Receiver in Bankruptcy’s approval.
- Main Roads Search:
- This search will tell you whether the property will be affected by any road planning, airport noise, or bikeway proposals.
- Council Rates and Water Search:
- This search will provide information on the rates and water charges on the property and whether this are paid or unpaid. This information will be used in calculating the settlement figures for the property.