What is the First Home Owners Scheme?

As part of the Inter governmental Agreement on the reform of Commonwealth-State Financial Relations, the States and Territories have agreed to provide financial assistance to Australians who are buying their first home through the establishment of the First Home Owner Grant.

The scheme is presently operating with eligible applicants entitled to a one-off $7,000 grant providing they meet the eligibility criteria.

Legislation to support this scheme was assented to on 9 June 2000.

A copy of the Act can be purchased from the State Law Publisher, 10 William Street, Perth

Who is an eligible person?

To be eligible:

At least one of the applicants must be an Australian citizen or have permanent residency in Australia. None of the applicants must have previously owned a home anywhere in Australia. Applicants must occupy the home purchased as their principal place of residence. If an applicant's spouse or de-facto partner has previously owned a home, no grant will be available. Except in the case of legal disability, applicants must be natural persons (that is not a company). Everyone with an interest in the home is considered an applicant.

What type of dwelling qualifies for the grant?

It can be a single dwelling, duplex, flat, townhouse etc. Any dwelling that is suitable as a residence. It must be connected, through the land, to water and sewerage services. A houseboat or caravan is not eligible. The grant will not be available for renovations to an existing building or for the purchase of vacant land,

Does my income affect the grant?

 
No. The grant is not means tested. The income of applicants is not taken into account when establishing eligibility for the grant,

Where do I obtain an application form?

Application forms and brochures may be obtained from the State Revenue Department or Approved First Home Owners' Scheme Participants

Are there any conditions attached to how the Grant may be used?

No. If you are eligible, there are no conditions as to how the grant funds may be used.

What evidence do I need to provide with my application?

Documentary evidence will need to be provided to establish your eligibility for the Grant.

If you were born in Australia - a certified copy of your Birth Certificate or Australian Passport.
If you are a Naturalised Australian, a copy of your Certificate of Australian Citizenship or Australian Passport.
If you are a permanent resident - a copy of your Permanent Resident Visa.
If you are purchasing an established home - a signed copy of the Offer and Acceptance or Transfer of Land document.
If you are contracting to have a home built - a signed copy of the Building Contract.
If you are an owner builder - evidence of the acutal costs to you and evidence confirming the home is ready for occupation.

What is Conveyancing?

In property terms, it is the transfer of Title from Vendor (seller) to the Purchaser.

It takes into account mortgages, caveats, restrictive covenants and the many and varied which arise in the "Transfer of Title".

Rating authorities are advised of the change of ownership and the rates and charges are apportioned. Water consumption is also provided for.

What else can a conveyancer do?

While settling a Real Estate transaction is their most common function, they may also be able to assist with;

Related Party Transfers

Survivorship Applications

Registrations of Strata Plans, Plans and Diagrams

Land Title Searches (and related documents).

What happens to the Deposit?

When a Real Estate Agent is involved the deposit is held in their Trust Account until settlement. In the absence of a Real Estate Agent it should similarly be held by the settlement agent for the Vendor, until settlement.

In the event that a dealing does not procees the deposit is normally refunded to the Purchaser.

Who pays Stamp Duty and when it is payable?

Prior to settlement the Purchaser (via their settlement agent/conveyancer) must provide the Vendor's settlement agent/conveyancer with a signed and stamped Transfer of Land document, which when signed by the Vendor is held by the Settlement Agent until settlement.

Concessional Stamp Duty and First Home Buyers allowances are available in special circumstances.

Do I have to attend settlements?

No, that's what you pay your settlement agent/conveyancer to do - although there is nothing stopping you from attending.

When do I get keys?

Most often the purchaser is entitled to possession once settlement has been effected. Legally the Vendor has until 12 noon of the following day to vacate the premises.

Generally it's a matter of communication between the buyer and seller and this is normally done via the Real Estate Agent representative.

The Question and Answer...

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