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The purchase price is only part of what a Queensland property costs you upfront. This guide covers the deposit, how finance conditions work, and the other costs that add up before you get the keys, so you can budget with a realistic picture rather than just the headline price.
Contract Deposit Basics
A deposit is commonly around 5 to 10 percent of the purchase price, though the exact amount is a matter of negotiation between buyer and seller rather than a fixed legal requirement. The deposit is generally held in trust, often by the selling agent or a solicitor, until settlement or another point specified in the contract.
Initial vs Balance Deposit
Some contracts split the deposit into an initial amount paid on signing and a balance deposit due later, such as once the finance condition is satisfied. Check exactly what your specific contract requires and when, rather than assuming a single lump sum applies.
The Finance Condition
Under the standard REIQ contract, a finance clause makes the purchase conditional on the buyer obtaining approval by a set due date. The buyer is generally required to give written notice to the seller by 5pm on that date confirming whether finance has been approved. If approval has not been obtained despite reasonable steps, the buyer can generally terminate and recover their deposit by giving notice before the deadline.
Pre-Approval vs Unconditional Finance
A general pre-approval from your lender is not the same as unconditional approval for the specific property and contract you have signed. Pre-approval gives you a working budget, but formal approval tied to the actual contract and, typically, a lender valuation of the property, is what satisfies the finance condition.
Lender Valuation Risk
Lenders generally arrange their own valuation of the specific property as part of approving your loan. If that valuation comes in below the contract price, your lender may reduce how much they are willing to lend, which can affect your ability to complete the purchase on the agreed terms. This is a genuine risk worth understanding before you sign, not just after.
Building and Pest Inspection Costs
Arranging a licensed building and pest inspection is an out-of-pocket cost separate from the deposit and purchase price. See our guide to building and pest inspections in Queensland.
Conveyancing and Legal Costs
Your conveyancer or solicitor’s professional fees are a separate cost, generally payable around settlement. See our guide to choosing a conveyancer or solicitor for how these services and costs differ.
Search Fees
Title searches and other property searches carried out during due diligence generally carry their own government or provider fees, on top of any professional fees for interpreting them.
Transfer Duty
Transfer duty is a significant upfront cost unless a concession applies. See our guide to first home buyer grants and transfer duty concessions in Queensland for how concessions can reduce this.
Registration and Settlement Costs
Registering the transfer of title and completing settlement, generally through the electronic PEXA settlement platform, carries its own administrative fees, usually handled by your conveyancer as part of settlement.
Moving and Insurance Costs
Beyond the transaction itself, budget for moving costs and building insurance, which should generally be arranged from the contract date given how early risk can pass to the buyer. See our guide to home and contents insurance in Queensland.
Why You Need a Cash Buffer Beyond the Deposit
Between the deposit, inspection costs, legal fees, search fees, duty, registration costs, and insurance, the cash required before and around settlement is meaningfully more than the deposit alone. Budgeting a buffer for these costs, rather than assuming the deposit is the only upfront figure, avoids an unwelcome surprise close to settlement.
Where Narevella Can Help
Our free Queensland Property Research Checklist covers the wider pre-purchase research process. For a specific address, our Property Review can help.
Disclaimer
This guide provides general research information only and is not financial or legal advice. Confirm exact costs, deposit terms, and finance clause obligations for your specific contract with your lender, conveyancer, or solicitor.
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