QLD Can a house be bought by a minor

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shilo

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1 October 2020
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Ok so my question is, Can a minor buy a house in queensland, is it simply that the title cannot be transferd into their name until they turn 18, but producing a birth certificate at the titles office?
assuming they are still alive. So if the property was bought when they were 12, there would be no stamp duty paid until the title went to them at 18.
 

Rob Legat - SBPL

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Can a minor buy a house? Yes.
Is it straightforward? No.
Can they be registered in title as a proprietor? Yes. They will be noted on title as a minor, together with their date of birth.
Is transfer duty (stamp duty in old speak) payable? Yes, even if the property is gifted to them. If the currently owner is related to the minor, you’ll have to get an appraisal/valuation done as well and pay transfer duty on that amount.

The biggest difficulty in a minor buying property is often giving assurance to the seller. As buying a property Is predominantly contract law, making it enforceable against the minor can be impossible (that devolves down into a whole ‘contract of necessity’ style argument). A potential way around is to get a guarantee from an adult for completion of the contract, which could be too big an ask. Then there’s the aspect of the minor securing finance (contract of necessity/guarantee scenario again).

The minor will also generally need a solicitor to act on their behalf for the purchase. The Registrar of Titles will not accept a transfer signed by a minor as transferee unless it is accompanied by a solicitor’s letter setting out relevant information. The other options are for a solicitor to sign as transferee (which is common anyway), or a court order must be produced allowing the transaction.

Also be aware that unless the minor intends to hold that property until after they turn 18 then a court order could be required to allow them to sell it.
 

shilo

Member
1 October 2020
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Thank you for this Rob,
Can i ask then about land tax?, assuming the minor was to only own that house and both parents lived in it with them. (Only child)
Kind Regards
 

Rob Legat - SBPL

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shilo

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1 October 2020
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Hello Rob,
thank you again,
Can i ask then, Can the parents own a house as their PPR and the Minor, if they were in fact side by side?
Regards
 

Rob Legat - SBPL

Lawyer
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16 February 2017
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Gold Coast, Queensland
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As long as they all live there - yes. Care must also be taken that renting out a room to a third party could invalidate the transfer duty reduction for buying a home.