New changes to the NSW Home Building Act.
Pic by Attanasis
On 19 October 2011, the NSW Parliament passed a package of reforms to the Home Building Act 1989 which includes changes to:
- home warranty insurance
- statutory warranty
- contract requirements.
The changes will commence in two stages, the first took effect on 25 October 2011, while second will begin on 1 February 2012.
Particularly for our clients, Investors buying house and land packages, off the plan units, new units, and home renovators should be aware of the following:
New small job contracts category
Residential building contracts must be in writing and include a number of requirements.
Commencing 1 February 2012, a new category of written contracts for ‘small jobs’ worth between $1,001 and $5,000 will come into effect. A small job contract must be in writing, dated and signed on behalf of both of the parties and contain the following information:
- the names of the parties, including the name and number of the holder of the contractor licence
- a description of the work (including any plans and specifications for the work)
- the contract price, if known.
So if you are renovating say a kitchen or a bathroom and the works are between $1,001.00 and $5,000.00 make sure you get it in writing with the builder or contractor.
Click on this link for full details of the changes.
Definition of completed
The term ‘completed’ has a very important role in the legislation because it marks the beginning of the time periods for statutory warranties and home warranty insurance.
There is now a clear definition of what is meant by ‘completion’.
Residential building work is ‘complete’ when it is completed in accordance with the requirements of the contract.
If there is no contract, or the contract doesn’t specify ‘completion’, the work is regarded as ‘complete’ when it can be used for its intended purpose and is free of major defects. The earliest of the following events can be used to determine when this occurs:
- the date the builder ‘handed over’ the project to the owner
- the date the contractor last carried out work (other than remedying minor defects)
- the date of the issue of an occupation certificate, or
- 18 months after the owner–builder permit was issued (in the case of an owner–builder).
Proportionate liability
Under the new laws when a homeowner takes action against their builder or developer for defective or incomplete work, the builder or developer will not be able to limit their responsibility to the part of the work for which they were directly responsible, regardless of the provisions contained in the Civil Liability Act 2002.
This does not mean that the builder or developer cannot use the provisions contained in the Civil Liability Act in separate legal proceedings
A full list of the changes are below:
October 2011 changes
Requirement to notify home warranty insurers in writing
Time limits on home warranty insurance claims
Claiming outside the home warranty insurance period
A notification of a loss includes a 'related' loss
Ten year limit
Definition of completed
Definition of developer
Proportionate liability
Trader–initiated disputes
February 2012 changes
Statutory warranty periods
Threshold for mandatory home warranty insurance
New small job contracts category
Additional home warranty insurance benefits for homeowners
Definition of ‘related’ corporations to a builder or developer
Click on this link for full details of the changes.
Regional Relocation Grant – Are you moving to a rural area in NSW?
Pic by Olexandr Lishchinskyi
1 July 2011
A once off payment of $7,000 to relocate to a regional home!
The Regional Relocation (Home Buyers Grant) Act 2011 will operate for four years, commencing 1 July 2011. The scheme will provide applicants with a one-off payment of $7,000 to assist them with the cost of relocating from their metropolitan home to a regional home.
The metropolitan area means the local government areas of the Sydney metropolitan area, Blue Mountains, Hawkesbury, Gosford, Wyong, Wollondilly, Wollongong and Newcastle.
The regional areas are participating local government areas which are located outside of the metropolitan area.
Eligibility Requirements
To be eligible for the $7,000 Regional Relocation Grant, the following criteria apply:
· All applicants must be natural persons and must not purchase the regional home in his or her capacity as
trustee
· At least one applicant must be an Australian citizen or permanent resident as at the completion date of
the regional home purchase
· All applicants must have entered into an agreement to purchase a home within a regional area, on or after
1 July 2011 and on or before 30 June 2015
· All applicants must have owned and occupied the metropolitan home as their principal place of residence
within 12 months before the commencement date (contract exchange date) of the regional home
purchase
· The consideration for the purchase or the unencumbered value of the regional home must not exceed
$600 000
· All applicants must sell the metropolitan home either before or within 12 months after the completion
date of the regional home purchase
· All applicants must occupy the regional home as their principal place of residence for at least 12
continuous months commencing within 12 months after the completion date of the regional home
purchase
· An applicant must not have received an earlier grant under the Regional Relocation (Home Buyers Grant)
Act 2011.
For more information visit: http://www.osr.nsw.gov.au/benefits/rrg/
A once off payment of $7,000 to relocate to a regional home!
The Regional Relocation (Home Buyers Grant) Act 2011 will operate for four years, commencing 1 July 2011. The scheme will provide applicants with a one-off payment of $7,000 to assist them with the cost of relocating from their metropolitan home to a regional home.
The metropolitan area means the local government areas of the Sydney metropolitan area, Blue Mountains, Hawkesbury, Gosford, Wyong, Wollondilly, Wollongong and Newcastle.
The regional areas are participating local government areas which are located outside of the metropolitan area.
Eligibility Requirements
To be eligible for the $7,000 Regional Relocation Grant, the following criteria apply:
· All applicants must be natural persons and must not purchase the regional home in his or her capacity as
trustee
· At least one applicant must be an Australian citizen or permanent resident as at the completion date of
the regional home purchase
· All applicants must have entered into an agreement to purchase a home within a regional area, on or after
1 July 2011 and on or before 30 June 2015
· All applicants must have owned and occupied the metropolitan home as their principal place of residence
within 12 months before the commencement date (contract exchange date) of the regional home
purchase
· The consideration for the purchase or the unencumbered value of the regional home must not exceed
$600 000
· All applicants must sell the metropolitan home either before or within 12 months after the completion
date of the regional home purchase
· All applicants must occupy the regional home as their principal place of residence for at least 12
continuous months commencing within 12 months after the completion date of the regional home
purchase
· An applicant must not have received an earlier grant under the Regional Relocation (Home Buyers Grant)
Act 2011.
For more information visit: http://www.osr.nsw.gov.au/benefits/rrg/
NSW Torrens Assurance Levy Repealed
14 June 2011
The Real Property Amendment (Torrens Assurance Levy Repeal) Act 2011 commences on 1 July 2011 and abolishes the Torrens Assurance levy from that date.
The transitional provisions provide that the levy will still be payable in relation to transfers executed to give effect to a contract for the sale of land entered into on or after 1 July 2010 but before 1 July 2011 and lodged for registration on or after 1 July 2011 as if the relevant provisions had not been repealed.
The Real Property Amendment (Torrens Assurance Levy Repeal) Act 2011 commences on 1 July 2011 and abolishes the Torrens Assurance levy from that date.
The transitional provisions provide that the levy will still be payable in relation to transfers executed to give effect to a contract for the sale of land entered into on or after 1 July 2010 but before 1 July 2011 and lodged for registration on or after 1 July 2011 as if the relevant provisions had not been repealed.
The First Home Owner Grant cap now $835,000.00
7 December 2010
The First Home Owner Grant cap amount will be increased to $835,000 and will apply from 1 January 2011. The updated FHOG Application Form and Factsheet are now available from the OSR website.
Read more about the First Home Owner Grant cap amount at:http://www.osr.nsw.gov.au/benefits/first_home/
The First Home Owner Grant cap amount will be increased to $835,000 and will apply from 1 January 2011. The updated FHOG Application Form and Factsheet are now available from the OSR website.
Read more about the First Home Owner Grant cap amount at:http://www.osr.nsw.gov.au/benefits/first_home/
Torrens Assurance Levy (Transfer Registration Fee)
3 July 2010
The NSW Government announced it has introduced an “ad Valorem” component to the Torrens Assurance Levy in relation to transfers of properties purchased for more than $500,000.00.
Please see the Department of Lands and Property Management (LPMA) Fact Sheet below for your information, and we note the essentials for you below.
· The levy is payable on contracts exchanged on or after 1 July 2010.
· The levy is a sliding scale according to purchase price.
· The additional levy applies where the purchase price is $500,500 or more.
· For transfers where the purchase price is at least $500,500 but not more than $1,000,000, the ad valorem levy is 0.2% of the amount by which the purchase price exceeds $500,000.
· For properties purchased for more than $1,000,000, the levy is $1000 plus 0.25% of the amount by which the purchase price exceeds $1,000,000.
· Levies are payable to LPMA when the transfer is lodged for registration.
Should you require any further information please do not hesitate to contact us.
The NSW Government announced it has introduced an “ad Valorem” component to the Torrens Assurance Levy in relation to transfers of properties purchased for more than $500,000.00.
Please see the Department of Lands and Property Management (LPMA) Fact Sheet below for your information, and we note the essentials for you below.
· The levy is payable on contracts exchanged on or after 1 July 2010.
· The levy is a sliding scale according to purchase price.
· The additional levy applies where the purchase price is $500,500 or more.
· For transfers where the purchase price is at least $500,500 but not more than $1,000,000, the ad valorem levy is 0.2% of the amount by which the purchase price exceeds $500,000.
· For properties purchased for more than $1,000,000, the levy is $1000 plus 0.25% of the amount by which the purchase price exceeds $1,000,000.
· Levies are payable to LPMA when the transfer is lodged for registration.
Should you require any further information please do not hesitate to contact us.
torrens_assurance_fact_sheet.pdf | |
File Size: | 305 kb |
File Type: |
The NSW Home Builders Bonus (HBB)
1 July 2010
The NSW Government is abolishing stamp duty for dwellings purchased off the plan, and making concessions for newly completed homes.
Check out the OSR NSW HBB Fact Sheet below.
The essential points are below for Off the Plan purchases:
· The HBB provides for full exemption for vacant land and off the plan purchases where building has not commenced.
· A partial concession of 25% applies to completed new homes or off the plan purchases where construction has commenced.
· To be eligible the value of new homes must not exceed $600,000.
· For an off the plan purchase to be eligible for HBB the agreement for sale must be entered into:
1. on or after 1 July 2010 and before 1 July 2011 and completed by 31 December 2012, OR
2. on or after 1 July 2011 and before 1 July 2012 and completed by 31 December 2013.
For a new completed home to be eligible for HBB the contract must be entered into on or after 1 July 2010 and before 1 July 2012.
Important : Applications for exemptions or concessions under HBB must be made within 3 months of the date of the agreement for sale.
The NSW Government is abolishing stamp duty for dwellings purchased off the plan, and making concessions for newly completed homes.
Check out the OSR NSW HBB Fact Sheet below.
The essential points are below for Off the Plan purchases:
· The HBB provides for full exemption for vacant land and off the plan purchases where building has not commenced.
· A partial concession of 25% applies to completed new homes or off the plan purchases where construction has commenced.
· To be eligible the value of new homes must not exceed $600,000.
· For an off the plan purchase to be eligible for HBB the agreement for sale must be entered into:
1. on or after 1 July 2010 and before 1 July 2011 and completed by 31 December 2012, OR
2. on or after 1 July 2011 and before 1 July 2012 and completed by 31 December 2013.
For a new completed home to be eligible for HBB the contract must be entered into on or after 1 July 2010 and before 1 July 2012.
Important : Applications for exemptions or concessions under HBB must be made within 3 months of the date of the agreement for sale.
nsw_home_builders_bonus.pdf | |
File Size: | 153 kb |
File Type: |
Seniors Principal Place of Residence Exemption (SPPR)
The SPPR provides full exemption for eligible seniors purchasing a new home that is to be occupied as their principal place of residence. Applicants must be 65 or over and selling their current residence