Conveyancing Articles
Property Solicitor, Conveyancer Sydney
14 May 2011
When looking for a Property Solicitor or Conveyancer Sydney, then you’ve come to the right place.
I want to let you know about the three most important factors you need to consider when looking for a Conveyancer or Property Solicitor, when you are buying or selling a property.
1. Is the Conveyancer or Property Solicitor qualified?
This one might seem really obvious, but it is an essential part of the selecting a Conveyancer Sydney or Property Solicitor to do your conveyancing, when you are buying or selling a property.
In NSW Conveyancer Sydney need to be licensed by the NSW Office of Fair Trading, and Property Solicitor must have a practising certificate in NSW to be able to practice law in NSW. Some Conveyancing Solicitors will also use a paralegal to assist them with the work. This is quite okay so long as the Property Solicitor has their practising certificate and is supervising the paralegal’s work.
2. Is the Price Right?
This is always a priority for a lot of people. Conveyancing can cost anywhere from $900 to $2000 or more, for a residential property. Conveyancer Sydney are usually cheaper however consider if they will be able to assist you when things go wrong? A Property Solicitor will certainly be able to advise you on any legal matters that may arise during the transaction, and give you the confidence to proceed.
Another factor that you need to consider for your conveyancing and when selecting a Conveyancing Solicitor is whether their pricing is a flat fee or whether they charge for additional services and disbursements.
3. Are you getting five (5) star customer service?
There are an abundance of cheap online Conveyancing Sydney Services, and although I have not used these services and cannot comment on them, I would imagine that in order to process a large volume of conveyancing files for them to make a living, the service would not be great, and of course the age old principle would have to be considered – “You get what you pay for”.
Our Property Solicitor provides you with 5 star exceptional customer service throughout your conveyancing or property transaction, while still being priced competitively. Our Conveyancing Solicitor is easily accessible, and you will be able to speak directly with her on the phone when you call.
So call us now for a free consultation on 02 9984 8788.
14 May 2011
When looking for a Property Solicitor or Conveyancer Sydney, then you’ve come to the right place.
I want to let you know about the three most important factors you need to consider when looking for a Conveyancer or Property Solicitor, when you are buying or selling a property.
1. Is the Conveyancer or Property Solicitor qualified?
This one might seem really obvious, but it is an essential part of the selecting a Conveyancer Sydney or Property Solicitor to do your conveyancing, when you are buying or selling a property.
In NSW Conveyancer Sydney need to be licensed by the NSW Office of Fair Trading, and Property Solicitor must have a practising certificate in NSW to be able to practice law in NSW. Some Conveyancing Solicitors will also use a paralegal to assist them with the work. This is quite okay so long as the Property Solicitor has their practising certificate and is supervising the paralegal’s work.
2. Is the Price Right?
This is always a priority for a lot of people. Conveyancing can cost anywhere from $900 to $2000 or more, for a residential property. Conveyancer Sydney are usually cheaper however consider if they will be able to assist you when things go wrong? A Property Solicitor will certainly be able to advise you on any legal matters that may arise during the transaction, and give you the confidence to proceed.
Another factor that you need to consider for your conveyancing and when selecting a Conveyancing Solicitor is whether their pricing is a flat fee or whether they charge for additional services and disbursements.
3. Are you getting five (5) star customer service?
There are an abundance of cheap online Conveyancing Sydney Services, and although I have not used these services and cannot comment on them, I would imagine that in order to process a large volume of conveyancing files for them to make a living, the service would not be great, and of course the age old principle would have to be considered – “You get what you pay for”.
Our Property Solicitor provides you with 5 star exceptional customer service throughout your conveyancing or property transaction, while still being priced competitively. Our Conveyancing Solicitor is easily accessible, and you will be able to speak directly with her on the phone when you call.
So call us now for a free consultation on 02 9984 8788.
Land Tax 2011 - Investment Properties
Picture by Suto Norbert
For property held as at midnight on 31 December 2010, land tax is payable if the land value of your property is over $387,000.00 (but excluding any property which is your principal place of residence). Land Tax is payable on the land value of all taxable land at the rate of $100.00 for the first $387,000.00 in land value and thereafter at 1.6% of the remaining value.
In the case of a house or vacant land, "Land value" is the value of the land, ignoring the value of the house. It is not the purchase price of the property. In the case of a unit, "Land value" is the value of the land upon which the building has been erected. That value is then apportioned among the units in the Strata Scheme using the unit entitlement (see my comments above under the heading "Unit Entitlement"). The land value is not the purchase price of the unit.
As a result of a High Court of Australia decision concerning the taxing of unit trusts, nearly all unit trusts in NSW are liable to be assessed as ‘special trusts’ under Section 3A of the Land Tax Management Act 1956. Special trusts are assessed at the rate of 1.6 per cent on the combined taxable value of the land and are not entitled to receive the 2011 threshold of $387,000.00 and will be liable for land tax.
It may be necessary for you to lodge an initial Land Tax Return or a Variation, depending upon the circumstances. I would be more than happy to assist you in this regard or you might contact your accountant or the Land Tax Office directly on 02 9685 2155 or 02 9689 6200.
Disclaimer: The information in this article is correct as at 14 May 2011. This information is not to be taken as legal advice and at all times we recommend you seek independent legal advice regarding your own individual circumstances from your legal representative.
Call us now for a FREE consultation 02 9984 8788.
Pre-purchase inspections - Pest, Building and Strata
14 May 2011
Before you exchange on a property you need to decide whether you want to have any inspections done on the property.
The contract does not cover the quality of the buildings on the property, or any issues with the Owners Corporation, it only covers title matters.
The property you are buying is probably going to be one of the biggest investment you will ever make, so the costs of these reports are minimal compared to the purchase price of your property.
House
Where you are buying a house then you will want to know the building is structurally sound and that it is not infected by ants or any other pests. You should expect that a building that is not brand new will have some defects. You may be able to see defects of a minor cosmetic nature yourself however a qualified building inspector will advise on any structural issues that may not be obvious to the average person.
A pest inspector will report on any pests that may be present such as termites or white ants, or any pest activity or damage on the property such as wood rot, or damage to tree stumps.
For peace of mind, it is recommended that you obtain both a pest and building inspection.
Strata Scheme
Where you are buying a unit, townhouse, villa and sometimes a duplex, you are buying into a strata scheme.
You can choose to obtain a Pest and Building Inspection if you wish. Some people only do so if the strata inspection report makes reference to any defects or pests within your unit or the complex.
We recommend you obtain an inspection of the strata books and records of the Owners Corporation, which is called a Strata Inspection Report. You can inspect the strata records yourself or there are firms which specialise in these and are experts in their field. They will not inspect the building only the books and records of the Owners Corporation who usually appoint a strata manager so the inspections if therefore done at the office of the strata manager.
The inspection will include such things as: what the quarterly levies are, what the financial position of the scheme is, whether there are any arrears, whether there are any defect or maintenance issues, whether there are any issues with tenants or between lot owners, whether insurance has been paid, and when the last building valuation was done for insurance purposes.
Be aware that the report will only record those matters which have been reported to the Owners Corporation and not any matters that have not as yet been reported.
Get a recommendation from a friend or we can recommend Pest, Building and Strata Inspectors to you. You should also check that your inspector has Professional Indemnity Insurance so that if they miss something then you have a chance of being compensated for the error.
Disclaimer: The information in this article is correct as at 14 May 2011. This information is not to be taken as legal advice and at all times we recommend you seek independent legal advice regarding your own individual circumstances from your legal representative.
Call us now for a FREE consultation 02 9984 8788.
Before you exchange on a property you need to decide whether you want to have any inspections done on the property.
The contract does not cover the quality of the buildings on the property, or any issues with the Owners Corporation, it only covers title matters.
The property you are buying is probably going to be one of the biggest investment you will ever make, so the costs of these reports are minimal compared to the purchase price of your property.
House
Where you are buying a house then you will want to know the building is structurally sound and that it is not infected by ants or any other pests. You should expect that a building that is not brand new will have some defects. You may be able to see defects of a minor cosmetic nature yourself however a qualified building inspector will advise on any structural issues that may not be obvious to the average person.
A pest inspector will report on any pests that may be present such as termites or white ants, or any pest activity or damage on the property such as wood rot, or damage to tree stumps.
For peace of mind, it is recommended that you obtain both a pest and building inspection.
Strata Scheme
Where you are buying a unit, townhouse, villa and sometimes a duplex, you are buying into a strata scheme.
You can choose to obtain a Pest and Building Inspection if you wish. Some people only do so if the strata inspection report makes reference to any defects or pests within your unit or the complex.
We recommend you obtain an inspection of the strata books and records of the Owners Corporation, which is called a Strata Inspection Report. You can inspect the strata records yourself or there are firms which specialise in these and are experts in their field. They will not inspect the building only the books and records of the Owners Corporation who usually appoint a strata manager so the inspections if therefore done at the office of the strata manager.
The inspection will include such things as: what the quarterly levies are, what the financial position of the scheme is, whether there are any arrears, whether there are any defect or maintenance issues, whether there are any issues with tenants or between lot owners, whether insurance has been paid, and when the last building valuation was done for insurance purposes.
Be aware that the report will only record those matters which have been reported to the Owners Corporation and not any matters that have not as yet been reported.
Get a recommendation from a friend or we can recommend Pest, Building and Strata Inspectors to you. You should also check that your inspector has Professional Indemnity Insurance so that if they miss something then you have a chance of being compensated for the error.
Disclaimer: The information in this article is correct as at 14 May 2011. This information is not to be taken as legal advice and at all times we recommend you seek independent legal advice regarding your own individual circumstances from your legal representative.
Call us now for a FREE consultation 02 9984 8788.
Risks when "buying off the plan"
14 May 2011
Strata units are often advertised for sale before construction commences or the building is completed, and sometimes it can be two or three years before the building is completed. Buying a strata unit in this way is known as “buying off the plan”.
Purchasers often believe that buying off the plan before the building is built is a great way to make a good investment because by the time the property is built and ready for settlement the property prices will have increased.
The purchaser does however need to be aware that there are certain risks when buying off the plan, and such risks include:
Prices may go down
Prices may go up on the off the plan unit but they may also go down by the time the property is ready for settlement, and particularly in the current market after the Global Financial Crisis (GFC) and when it is a “soft real estate market“ then it is possible valuations done by the lending institutions may actually come in under the value of the original purchase price.
The unit may not be built as expected
Sometimes the builder may vary the off the plan unit from the original plan. This can be due to a number of reasons including Council requirements to make certain changes, or the Department of Property and Land Management (LPMA) requiring these changes, or simply because the Vendor changes his mind.
Off the plan contracts always contain a clause that the Purchaser cannot rescind (or get out of) the contract where there is a difference between the draft strata plan and the actual strata plan when registered, which is less than a minor variation. The minor variation is specified in your contract and is often about 5%. This means that should the builder reduce your unit by 1 or 2 square metres, it is unlikely you will be able to do anything about it.
Delays are inevitable
Purchaser often get upset when completion of an off the plan property is delayed 6 and sometimes even 9 months from the original expected due date and often blame the builder and want compensation for the delay. Purchasers need to be aware that there is no compensation clause for them in the contract should completion be delayed for an off the plan property. Most contracts specify a Sunset Date (a final date for the building to be completed) and this is often a year or so after the expected completion date anyway so the builder is within his rights. The off the plan contracts also have a clause which allows the Vendor to extend the Sunset Date even further due to inclement weather and strikes etc.
It is possible that you won’t be able to get finance when the building is completed
Sometimes situations change, people lose jobs, or change jobs to one with lesser pay, or the banks tighten up their policies so where you may have been able to get finance when you exchanged contracts you may not be able to obtain finance when the building is completed. Should you not be able to obtain finance in time for settlement, or within a reasonable time thereafter (usually 14 days) then it is possible the Vendor will be able to terminate the contract, keep your deposit and sue you for any damages he has suffered as a result. These are the risks you need to be aware of and be prepared to take when buying off the plan units.
Tips when buying off the plan
Disclaimer: The information in this article is correct as at 14May 2011. This information is not to be taken as legal advice and at all times we recommend you seek independent legal advice regarding your own individual circumstances from your legal representative.
Call us now for a FREE consultation 02 9984 8788.
Strata units are often advertised for sale before construction commences or the building is completed, and sometimes it can be two or three years before the building is completed. Buying a strata unit in this way is known as “buying off the plan”.
Purchasers often believe that buying off the plan before the building is built is a great way to make a good investment because by the time the property is built and ready for settlement the property prices will have increased.
The purchaser does however need to be aware that there are certain risks when buying off the plan, and such risks include:
Prices may go down
Prices may go up on the off the plan unit but they may also go down by the time the property is ready for settlement, and particularly in the current market after the Global Financial Crisis (GFC) and when it is a “soft real estate market“ then it is possible valuations done by the lending institutions may actually come in under the value of the original purchase price.
The unit may not be built as expected
Sometimes the builder may vary the off the plan unit from the original plan. This can be due to a number of reasons including Council requirements to make certain changes, or the Department of Property and Land Management (LPMA) requiring these changes, or simply because the Vendor changes his mind.
Off the plan contracts always contain a clause that the Purchaser cannot rescind (or get out of) the contract where there is a difference between the draft strata plan and the actual strata plan when registered, which is less than a minor variation. The minor variation is specified in your contract and is often about 5%. This means that should the builder reduce your unit by 1 or 2 square metres, it is unlikely you will be able to do anything about it.
Delays are inevitable
Purchaser often get upset when completion of an off the plan property is delayed 6 and sometimes even 9 months from the original expected due date and often blame the builder and want compensation for the delay. Purchasers need to be aware that there is no compensation clause for them in the contract should completion be delayed for an off the plan property. Most contracts specify a Sunset Date (a final date for the building to be completed) and this is often a year or so after the expected completion date anyway so the builder is within his rights. The off the plan contracts also have a clause which allows the Vendor to extend the Sunset Date even further due to inclement weather and strikes etc.
It is possible that you won’t be able to get finance when the building is completed
Sometimes situations change, people lose jobs, or change jobs to one with lesser pay, or the banks tighten up their policies so where you may have been able to get finance when you exchanged contracts you may not be able to obtain finance when the building is completed. Should you not be able to obtain finance in time for settlement, or within a reasonable time thereafter (usually 14 days) then it is possible the Vendor will be able to terminate the contract, keep your deposit and sue you for any damages he has suffered as a result. These are the risks you need to be aware of and be prepared to take when buying off the plan units.
Tips when buying off the plan
- Make sure you obtain a pre-approval from your lender prior to exchange of contracts to ensure you will get approval and have the capacity to service a loan for the off the plan property when is completed.
- Make sure you have some surplus funds available just in case the valuation comes in under the purchase price of the property so you can still proceed to settlement.
- Stamp duty is due 12 months after the date of the off the plan contract, and the Office of State Revenue requires stamp duty be paid within 3 months of this. This means you have 15 months from the date of the off the plan contract to pay the stamp duty. It could also be earlier if settlement occurs before this. Remember to put some money aside so that you can pay the stamp duty when it becomes due.
- Make sure there is a floor plan in the off the plan contract and a schedule of finishes which specifies all the items you are expecting in the property. If a sales brochures says that you will get an entertainment unit in the off the plan property but this is not in the contract, and the Vendor does not provide it, then it is very unlikely you will be able to get the Vendor to provide one on or after settlement.
Disclaimer: The information in this article is correct as at 14May 2011. This information is not to be taken as legal advice and at all times we recommend you seek independent legal advice regarding your own individual circumstances from your legal representative.
Call us now for a FREE consultation 02 9984 8788.
NSW Housing Construction Acceleration Plan (HCAP) – Stamp Duty Discount
Picture by Madartists
24 September 2009
Information provided for The Investor Club (TIC) membes
The NSW Government has introduced the NSW Housing Construction Acceleration Plan (HCAP) from 1 July 2009 which is a housing stimulus for people outside the first home buyer market, cutting stamp duty by 50 per cent for people buying newly constructed properties or new home in NSW with a value not exceeding $600,000.00.
A new home is defined as a home that has not previously been occupied or sold as a place of residence, and includes a substantially renovated home.
It will therefore be important for the Investor Club members to be aware whether they may be eligible for the new HCAP stamp duty discount and to ensure to check this with their solicitor when buying property in New South Wales.
The Investor Club members who are eligible for the HCAP stamp duty discount will need to sign a Statutory Declaration that the property is a new home and has never been occupied, so purchaser’s will need to be very careful to ensure that the property has never been occupied prior to exchange of contracts, and this is the purchaser’s responsibility to ensure this is correct. This means the Investors Club and the Vendor must be made aware that the property should not be leased (or even merely occupied by the builder) prior to exchange of contracts, and that the contract must say the property is sold as “Vacant Possession” and not “Subject to a tenancy”.
The Office of State Revenue (OSR) have confirmed for us that so long as the contract is exchanged as noted above with Vacant Possession, then should the Vendor and Purchaser agree thereafter that the property is then to be tenanted and a tenant moves into the property after exchange of contracts and before settlement, then the purchaser will still be eligible for the stamp duty discount. It would also be wise for members to seek a “Vendor Statement” from the Vendor, if they will provide one, to the effect that the property is eligible for the HCAP stamp duty discount. We are aware that some Vendors may not agree to provide this statement for the HCAP stamp duty discount. Members should also seek and keep a copy of the Certificate of Occupation for the building as evidence that the building is in fact a new building.
The NSW Office of State Revenue when it comes to providing such stamp duty discounts and exemptions is very vigilant. Evidence will often be required should the OSR come knocking on your door to check your eligibility for the stamp duty discount down the track. First Home Buyer’s have been known to have to pay back the First Home Owners Grant (the Grant) of stamp duty because they could not provide evidence that they had lived in the property for the six (6) out of the first twelve (12) months from the completion date as required by the conditions of the Grant.
So members don’t get caught, and make sure you retain your evidence that the property is a new home to provide evidence that you are entitled to the HCAP stamp duty exemption and that the property has not previously been occupied or sold as a place of residence.
Disclaimer: The information in this article is correct as at 17 September 2009. This information is not to be taken as legal advice and at all times we recommend you seek independent legal advice regarding your own individual circumstances from your legal representative.
Call us now for a FREE consultation on 0409 813121.
Information provided for The Investor Club (TIC) membes
The NSW Government has introduced the NSW Housing Construction Acceleration Plan (HCAP) from 1 July 2009 which is a housing stimulus for people outside the first home buyer market, cutting stamp duty by 50 per cent for people buying newly constructed properties or new home in NSW with a value not exceeding $600,000.00.
A new home is defined as a home that has not previously been occupied or sold as a place of residence, and includes a substantially renovated home.
It will therefore be important for the Investor Club members to be aware whether they may be eligible for the new HCAP stamp duty discount and to ensure to check this with their solicitor when buying property in New South Wales.
The Investor Club members who are eligible for the HCAP stamp duty discount will need to sign a Statutory Declaration that the property is a new home and has never been occupied, so purchaser’s will need to be very careful to ensure that the property has never been occupied prior to exchange of contracts, and this is the purchaser’s responsibility to ensure this is correct. This means the Investors Club and the Vendor must be made aware that the property should not be leased (or even merely occupied by the builder) prior to exchange of contracts, and that the contract must say the property is sold as “Vacant Possession” and not “Subject to a tenancy”.
The Office of State Revenue (OSR) have confirmed for us that so long as the contract is exchanged as noted above with Vacant Possession, then should the Vendor and Purchaser agree thereafter that the property is then to be tenanted and a tenant moves into the property after exchange of contracts and before settlement, then the purchaser will still be eligible for the stamp duty discount. It would also be wise for members to seek a “Vendor Statement” from the Vendor, if they will provide one, to the effect that the property is eligible for the HCAP stamp duty discount. We are aware that some Vendors may not agree to provide this statement for the HCAP stamp duty discount. Members should also seek and keep a copy of the Certificate of Occupation for the building as evidence that the building is in fact a new building.
The NSW Office of State Revenue when it comes to providing such stamp duty discounts and exemptions is very vigilant. Evidence will often be required should the OSR come knocking on your door to check your eligibility for the stamp duty discount down the track. First Home Buyer’s have been known to have to pay back the First Home Owners Grant (the Grant) of stamp duty because they could not provide evidence that they had lived in the property for the six (6) out of the first twelve (12) months from the completion date as required by the conditions of the Grant.
So members don’t get caught, and make sure you retain your evidence that the property is a new home to provide evidence that you are entitled to the HCAP stamp duty exemption and that the property has not previously been occupied or sold as a place of residence.
Disclaimer: The information in this article is correct as at 17 September 2009. This information is not to be taken as legal advice and at all times we recommend you seek independent legal advice regarding your own individual circumstances from your legal representative.
Call us now for a FREE consultation on 0409 813121.