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Beware First Home Buyers!!!

Beware First Home Buyers!!!

In a recent decision handed down by QCAT a first home buyer has been denied the first home buyer's grant. The full decision of QCAT appears here: http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/qld/QCAT/2020/231.html

The essence of the case comes down to the character of the property. Here, we had Springfield, the original land developer, sell land and a dwelling to Ownit Homes, who then on sold to the applicant. The intent of the Parliament in providing a first home owner grant, is to provide a grant to a first home buyer who builds or buys a new home, AND thereby boosts the housing construction sector. The Tribunal provided that this was already achieved when the home was first built and then transferred to Ownit Homes - before the Applicants purchased it: "This means that the home was previously sold as a place of residence before the Applicants bought it...the contract between the Applicants and Ownit was therefore not for the purchase of a new home and was not eligible for the first home owner grant". The fact that the home was a display home was irrelevant for this purpose. It was also stated by the Tribunal that the description of the property in the contract may, although not in this case, be a determining factor. It is important to always have your contracts reviewed BEFORE you sign, as the outcome may have been different if the description was different AND there was a special condition. It will always depend on the circumstances of each individual case, but this is definitely a heads up for those first home buyers who may assume they are entitled to the grant in a similar situation.

Despina Priala

Posted By Despina Priala
Despina Priala has practised in property and commercial law on the Gold Coast for over 25 years and has extensive experience in this area.

Updated : 18th June 2022 | Words : 273 | Views : 573

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