Hi there,
I am in the process of buying a bank repossession in Queensland. I have purchased property in the UK but not in Australia as yet so this is all pretty new to me. I was just wondering what financial liabilities are attached to a property in Queensland and would pass to a new owner. Re. council rates, land tax, utilities, water etc, would any outstanding sums be the repossessed owner's liability or would they be attached to the property and pass to me as the new owner? Unfortunately I cannot add a clause in the Contract to cover me in this respect as the property is sold as seen by the mortgagee in possession - no conditions allowed. If anyone can think of anything else I would need to
check or watch out for, I am all ears.
Many thanks.
Financial Liabilities attached to a Property - Queensland
Re: Financial Liabilities attached to a Property - Queenslan
Hi r2g
If you are purchasing a property which has been repossessed by the bank, it’s a win-win for you. Generally, you will purchase this property at a lower price and you will not incur the arrears from the previous owner.
The bank will try to recover as much funds from the sale of the property to cover the previous owner’s outstanding liabilities.
All costs such as council rates, utilities and water rates will start fresh for you from the date the property is transferred to your name.
All stamp duty and land tax will be calculated as per normal.
Hope this helps. Please feel free to contact me if you would like to further discuss your home loan enquiry.
If you are purchasing a property which has been repossessed by the bank, it’s a win-win for you. Generally, you will purchase this property at a lower price and you will not incur the arrears from the previous owner.
The bank will try to recover as much funds from the sale of the property to cover the previous owner’s outstanding liabilities.
All costs such as council rates, utilities and water rates will start fresh for you from the date the property is transferred to your name.
All stamp duty and land tax will be calculated as per normal.
Hope this helps. Please feel free to contact me if you would like to further discuss your home loan enquiry.
Re: Financial Liabilities attached to a Property - Queenslan
r2g firstly welcome to the forum.
Being a fellow Pom who has lived in Qld for 15 years i can understand your initial confusion.
I have purchased many a Bank repossession here in Qld and whilst you might be buying the property at a below market value remember your financier will only lend against purchase price / valuation whichever is the lower.
Dont just take the Contract at face value irrespective of who the Vendor is as if you wish to add a clause or special condition just do so. The Seller doesnt have to accept but i most cases i have found that as long as it is reasonable the Bank will have no issues.
Cheers
Being a fellow Pom who has lived in Qld for 15 years i can understand your initial confusion.
I have purchased many a Bank repossession here in Qld and whilst you might be buying the property at a below market value remember your financier will only lend against purchase price / valuation whichever is the lower.
Dont just take the Contract at face value irrespective of who the Vendor is as if you wish to add a clause or special condition just do so. The Seller doesnt have to accept but i most cases i have found that as long as it is reasonable the Bank will have no issues.
Cheers