Don’t Confuse the Australian Property Buying Process - Three Critical Legal Issues Taiwanese Buyers Most Commonly Overlook

Understanding the Differences Between Taiwan and Australia: Why Knowing the System Is the Key to Reducing Risk

Introduction: Why System Differences Are the Biggest Risk for Overseas Buyers

Many Taiwanese buyers rely on their local property purchasing experience when buying overseas. In Taiwan, real estate agents and scriveners (代書) often manage most of the transaction process, while legal and administrative risks are largely absorbed by the system itself. Buyers typically have limited direct interaction with multiple professionals.

Australia, however, operates under a highly specialised and segmented property transaction system. Real estate agents, solicitors, conveyancers, accountants, building inspectors, and mortgage brokers each play distinct and non-overlapping roles.

For overseas buyers, the greatest risk is often not the market, but rather a misunderstanding of who is responsible for what, and at which stage professional advice is required.

Understanding these roles—and engaging the right professionals at the right time—is essential for purchasing property safely and successfully in Australia, whether for owner-occupation or long-term investment.

Key Point 1: Understanding the Distinct Roles of Real Estate Agents and Legal Professionals

In Australia, the responsibilities of real estate agents and legal professionals are clearly separated to reduce transaction risk.

1. Role of a Real Estate Agent

A licensed real estate agent’s primary responsibilities include:

• Providing market information and property options

• Assisting buyers in understanding local market conditions

• Coordinating inspections, negotiations, and auctions

• Managing communication between buyer and seller

Important: Under Australian law, real estate agents cannot provide legal advice, nor are they permitted to review or interpret contract clauses on behalf of buyers. They are regulated by state authorities and must hold a valid licence.

2. Role of Solicitors and Conveyancers

Solicitors and conveyancers are responsible for the legal protection of the buyer, including:

• Reviewing the contract of sale and explaining legal obligations

• Conducting title searches to confirm legal ownership

• Identifying easements, restrictions, or caveats on the property

• Advising on special conditions that may affect buyer rights

• Managing settlement to ensure correct transfer of funds and title

Their role is critical in identifying risks that are not visible from inspections or marketing materials.

Key Point 2: Contract and Title Review Before Signing Is the Core of Risk Management

Compared to Taiwan, Australian contracts are significantly more detailed and legally binding. Their clauses can have long-term implications for ownership, liability, and resale.

Key Areas of Legal Review

1. Special Conditions

Contracts often contain special conditions that may shift costs or responsibilities to the buyer, such as:

• Buyer paying the seller’s legal fees

• Acceptance of the property “as is” under all circumstances

These clauses can materially affect buyer rights if not properly understood.

2. Title Search

A title search may reveal:

• Existing mortgages

• Easements for utilities or access

• Caveats or land-use restrictions

• Ongoing legal disputes

This is one of the most critical steps in the due-diligence process.

3. Building Compliance

Legal review should confirm whether renovations or extensions received council approval. Unapproved works may result in fines or demolition orders imposed on the buyer after settlement.

4. Strata (Owners Corporation) Review

For apartments or townhouses, buyers must review:

• Financial health of the owners corporation

• Planned major repairs or levies

• Existing disputes within the strata scheme

These issues can significantly affect ongoing costs and resale value.

Key Point 3: Correctly Understanding Cooling-Off Periods and Auction Rules

Most Australian states provide a cooling-off period, allowing buyers to withdraw from a contract within a short timeframe. However, the duration, cost, and applicability vary by state and transaction type.

Cooling-Off Period by State

State / Territory	Cooling-Off Period	Cancellation Cost	Applies to Auctions
NSW	5 business days	0.25% of purchase price	No
VIC	3 business days	$100 or 0.2% (whichever is higher)	No
QLD	5 business days	0.25% of purchase price	No
SA	2 business days	Deposit refunded except first $100	No
ACT	5 business days	0.25% of purchase price	No

Source: Official state government websites

Important Cooling-Off Details

1. Business days only (excluding weekends and public holidays)

2. Cancellation must be made in writing before expiry

3. It is strongly recommended that solicitors or conveyancers issue cancellation notices

4. Off-the-plan purchases may have extended cooling-off periods (e.g., 10 business days in NSW)

Auction Purchases: No Cooling-Off Protection

Properties purchased at auction do not carry a cooling-off period. Once the hammer falls:

• The contract is immediately binding

• The deposit must be paid on the spot

• Withdrawal is not permitted

Before bidding at auction, buyers should ensure:

• Contract has been reviewed by a solicitor/conveyancer

• Building & pest inspection is completed

• Finance pre-approval is in place

• Title search reveals no legal issues

Taiwan vs Australia: Key System Differences

Aspect	Taiwan	Australia
Role structure	Centralised	Highly specialised
Legal review	Limited	Mandatory in practice
Contract complexity	Relatively simple	Detailed and legally extensive
Cooling-off period	No statutory cooling-off	2–5 business days (state-based)
Auctions	Rare	Common; no cooling-off

Frequently Asked Questions

Can non-PR holders buy residential property in Australia?

Yes, but under strict conditions. Non-PR holders (including student and work visa holders) may generally only purchase new dwellings or off-the-plan properties, subject to FIRB approval.

Can buyers claim compensation for defects discovered after settlement?

Generally difficult, unless the seller intentionally concealed defects or provided misleading information. Australian property law follows the “buyer beware” principle.

Is a Building & Pest Inspection mandatory?

Not legally required, but strongly recommended. Without it, all post-settlement repair costs fall entirely on the buyer.

Is hiring a solicitor or conveyancer mandatory?

Not legally required, but highly necessary. Buyers who proceed without professional advice assume full legal risk.

Three Practical Recommendations for Overseas Buyers

1. Develop a Correct Understanding of the System

Australian property transactions rely on professional collaboration, not a single all-in-one service provider.

2. Ensure Every Critical Stage Has Professional Oversight

Legal review, title checks, finance structuring, and tax planning should each be handled by qualified professionals—especially for overseas buyers.

3. Understand State-Specific Rules Before Making Offers

Rules vary significantly by state, including cooling-off periods, auction laws, stamp duty, and foreign buyer surcharges.

Conclusion: Understanding the System Is the Foundation of Long-Term Investment

Buying property in Australia is not merely about choosing the right asset—it is about entering a different legal and institutional framework.

The system may appear complex, but its strength lies in clear professional accountability and legal safeguards. Successful overseas investors consistently report that time spent understanding the system upfront leads to safer, more sustainable long-term returns.

In Australia, professional advice is not a cost—it is an investment safeguard. Choosing the right team from the beginning is far less expensive than correcting mistakes later.

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Alison’s Story

Born in Hong Kong an moved to Australia, I have been associated with real estate all my life. As the plane slowly landed on the runway of Melbourne Airport, my life and career also changed to another runway. I changed from a Hong Kong real estate agent to an Australian real estate agent, and successfully obtained the Australian lawyer qualification.

When I was working in a law firm, I was surrounded by highly educated professionals. Even though their wages are very well, and they are absolutely the elites in society, but their lives are full of hard labor, and it’s hard for them to get rich through buying properties.

So I spend all my time and effort on learning financial and real estate investment knowledge, hoping to achieve financial freedom as soon as possible, and let my parents who have worked hard for many years live a good life.

Now I will share with you the knowledge and experience of investing in Australian real estate, and embark on the road to financial freedom together.

Alison Australian real estate information platform

The original intention of Miss Alison to establish investwithalison.com is to provide neutral Australian real estate information through this platform and help investors establish the most suitable investment strategy.

👉Website: investwithalison.com

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