For people buying residential property in
Queensland, there are three main transfer
duty concessions available. These are:
- the first home concession;
- the first home vacant land concession; and
- the home concession.
I’m John Gallagher form Argon Law and I
would like to discuss some of the key conditions
applicable to those concessions.
All the concessions are generally conditional
upon the Buyer:
- living in the property for a period of at
least 12 months within a certain time after
settlement; and
- not entering into any disposal in respect
of the property at any time before that 12
month period expires.
What constitutes a ‘disposal’ is something
I want to explore further as any disposal
will trigger a reassessment of transfer duty
under the Duties Act. A disposal occurs when
a Buyer sells or grants a lease or exclusive
possession over any part of the property before
the 12 month owner occupancy period expires.
But what happens if a property is purchased
with a tenant in place? Is it a disposal if
the tenant remains for a time until the Buyer
moves in? The answer is it depends on when
their lease ends under Queensland tenancy
law.
Under the Duties Act, concessions are only
available if the tenant vacates at the end
of their current term or within six months
of the settlement date (whichever is earlier).
When is the end of their current term? Under
tenancy law the ‘current term’ is ultimately
determined by the landlord or the tenant,
giving the correct period of notice, in the
right way.
If you intend to buy a property that has a
tenant and you are you worried about your
eligibility to receive the concessions, feel
free to give us a call.
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