Frequently Asked Questions About Buying Property in Tasmania
- Simone Cooper
- Apr 30
- 4 min read
Updated: May 20
Q1: How does making an offer work in Tasmania?
In Tasmania, making an offer must be done using a formal written contract, either through a real estate agent or via private sale. Verbal offers are not legally binding. Once you submit a signed offer to the seller (vendor), they can accept it, reject it, or counter with a different price or conditions. Negotiations may go back and forth until both parties agree on the terms and sign the contract.
Q2: What does "subject to finance" mean in an offer?
An offer "subject to finance" means the purchase is conditional on the buyer securing a home loan. If the buyer is unable to obtain finance after making a genuine attempt within the agreed timeframe, the contract can be cancelled without penalty. Other common conditions include “subject to the sale of an existing property” or “subject to a satisfactory building inspection.”
Q3: What is the offer and acceptance process?
The offer and acceptance process is a negotiation. The buyer makes an offer, and the seller can accept it, reject it, or negotiate the terms. It’s important to understand that sellers are not obliged to accept the highest offer—they can choose any offer they prefer. As a buyer, it's wise to make your best offer up front, especially in competitive markets.
Q4: What does "going unconditional" mean?
"Going unconditional" means all contract conditions—such as finance approval, building inspection, or sale of a previous home—have been satisfied. Once the contract becomes unconditional, it is legally binding, and neither party can withdraw without serious financial consequences. Settlement then proceeds as the next step.
Q5: What is Buyer Beware, and how does it apply in Tasmania?
Tasmania operates under the principle of “buyer beware.” This means it is the buyer’s responsibility to investigate the property before committing to the purchase. Importantly, in Tasmania, council and property searches are not automatically provided—you must conduct your own due diligence before signing the contract, or you risk missing critical information such as zoning issues, illegal structures, flood risks, or heritage restrictions. If you sign without doing these checks, you typically have no legal recourse after settlement if issues arise.
Q6: Do I need a Tasmanian conveyancer or solicitor?
While it's not legally required, using a Tasmanian-based licensed conveyancer or solicitor is strongly recommended. They understand the local laws and procedures, including how to carry out title searches, interpret local planning schemes, draft special conditions, and manage the settlement process. A good conveyancer or solicitor will protect your interests throughout the transaction.
Q7: What deposit is required?
A standard deposit in Tasmania is typically 10% of the purchase price, paid when the contract is signed and accepted. This deposit is held in the real estate agent’s trust account until settlement. The deposit amount is negotiable, and can be reduced if both parties agree.
Q8: What is stamp duty (or "duty") and how much will I pay?
Stamp duty is a tax payable by the buyer. It is calculated on the property’s purchase price. For example:
$375,000 to $725,000: Duty is $12,935 plus $4.25 for every $100 above $375,000.
Over $725,000: Duty is $27,810 plus $4.50 for every $100 above $725,000.
For up-to-date calculations, visit www.sro.tas.gov.au.
Q9: Is there a cooling-off period in Tasmania?
Tasmania does not have an automatic cooling-off period. However, the Standard Form Contract (2023) allows buyers to elect a 3-business-day cooling-off period, unless it is specifically waived in the contract. Always check whether this option has been included or crossed out.
Q10: What is land tax and who pays it?
Land tax is charged annually on non-owner-occupied land as of July 1 each year. Your principal residence and primary production land are typically exempt. If you're buying an investment property or vacant land, you may be liable for land tax depending on the property's value.
Q11: What happens after my offer is accepted?
Once the seller signs and accepts your offer, the contract becomes legally binding (subject to any included conditions). You must pay the deposit and begin working with your conveyancer or solicitor to meet the contract conditions, such as finalizing finance or arranging inspections. When all conditions are met, the contract becomes unconditional, and you move toward settlement.
Q12: What happens at settlement?
Your conveyancer or solicitor will coordinate with your lender and the seller’s representative to ensure all legal documents are signed, funds are transferred, and any adjustments for rates or utilities are made. You’ll typically do a pre-settlement inspection to ensure the property is in the same condition. Once settlement is complete, you receive the keys and legal ownership of the property.
Q13: Can I get any grants or concessions as a buyer?
Yes. Tasmania offers a $30,000 First Home Owner Grant (FHOG) for eligible buyers purchasing new homes. There are also stamp duty concessions for eligible first home buyers and pensioners downsizing to a smaller home. Check with the State Revenue Office for eligibility and application details.
Buying property in Tasmania is an exciting journey, but it requires careful planning and due diligence. From making an offer to navigating settlement, each step involves important legal, financial, and practical considerations. Engaging a qualified local conveyancer or solicitor, conducting thorough pre-purchase searches, and understanding your obligations under the “buyer beware” principle are essential to protect your interests. By following a good checklist and seeking professional advice where needed, you can move forward with confidence and secure your property with clarity and peace of mind.