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Settle the length of the due diligence period before you sign. It must allow enough time to complete every check below. Once the contract goes unconditional, most of the risk passes to you.
Confirms the property can be used as you intend, both now and in future.
Unapproved works can become your problem, including the cost of making them compliant.
These can limit where you build, park or extend, and are not always visible.
The leases set your income, so check the rent, term, options and any arrears.
Ongoing charges affect your real return and should match what the seller has disclosed.
Confirms water, sewerage, power and telecommunications are connected and adequate for your use.
Former industrial or fuel uses can leave contamination that is costly to clean up.
A survey confirms the land and buildings match what the contract actually describes.
Agree in writing who owns items such as air conditioning, solar panels and fitout.
Commercial lending often takes longer, so the finance date must allow for that.
Anything the seller or agent has promised you should be recorded in the contract.
Usually, yes. The sale of commercial property by a seller registered for GST is generally a taxable sale. Whether GST is added, included or not charged at all can move the price by ten percent. Two exceptions matter most.
Under the margin scheme, GST is calculated on the seller’s margin rather than the full sale price. The parties must agree in writing to use it before settlement. A buyer who purchases under the margin scheme cannot claim a GST credit for that GST. Not every property is eligible, so this depends on how the seller acquired it.
We review the GST clauses alongside your accountant, so the contract reflects the treatment you intend.
Transfer duty is payable by the buyer on commercial property in Queensland. The liability generally arises when the contract is signed or after the contract becomes unconditional. This may occur prior to settlement. Duty must then be lodged and paid within the Queensland Revenue Office timeframes. Commercial purchases do not attract the home concessions, so duty should be included in your budget from the start.
Land tax is an annual Queensland tax on investment land. It is assessed on the land you own at midnight on 30 June. It is based on the land valuation, not the purchase price. Tax is only payable once the total taxable value of your Queensland land exceeds a threshold. Above that threshold, it is charged on a sliding scale, so the rate rises as your land value increases.
Commercial property is often held separately from the business that uses it. That keeps the property clear of business risk and makes either asset easier to sell. Common options include an individual, a company, a family trust, a unit trust or a self managed super fund.
A self managed super fund can buy business real property at market value. That includes premises leased to a related business. Strict rules apply to the lease, the borrowing and the fund’s investment strategy. Changing the buyer after signing can trigger duty a second time. Make this decision before the contract is signed.
A foreign person may need approval under the Foreign Acquisitions and Takeovers Act 1975 (Cth) before buying commercial land.
A foreign person can include an Australian company or trust with significant foreign ownership. Where approval is needed, the contract should be conditional on it. Buying without a required approval can lead to substantial penalties.
Sellers should prepare before going to market, not after an offer arrives.
Start by settling what is included in the sale. Buildings with several tenancies often raise questions about air conditioning, solar systems and fitout. Some of those items may belong to tenants rather than to you.
Next, assemble the documents a buyer will ask for. That includes leases, the tenancy schedule, outgoings statements and building approvals. Having these ready shortens due diligence and reduces the chance of a late renegotiation.
Lease terms and financial information are often confidential. Where needed, we prepare a confidentiality agreement for prospective buyers to sign before documents are released. We can also help you set criteria for screening buyers before anything is disclosed.
Since 1 August 2025, most sellers of Queensland freehold land must give the buyer a disclosure statement before signing. Getting this wrong can give the buyer a right to terminate.
Whether you are buying, selling, investing, or preparing for due diligence, our commercial property lawyers are ready to guide you through every stage of the transaction with practical legal advice and responsive service.
Commercial settlements involve more adjustments than a residential sale. Rates and water are apportioned as usual except where these are payable by a tenant or tenants. Rent and outgoings under existing leases are also apportioned between buyer and seller. Bank guarantees and bonds held for tenants need to be transferred or replaced. Land tax may be adjusted, depending on the terms of the contract.
We check the settlement statement line by line before any funds change hands.
We quote a fixed fee once we understand the property and the transaction. The quote sets out each step we will take, so you can see what the fee covers. We aim to contact you within 24 hours of your enquiry.
