Conveyancing property

NSW OSR Client Identification

2011-10-18T21:06:00.000-07:00

Office of State Revenue will be collecting Client Identification (CI) information for all parties liable to or exempt from transfer duty
Here is their page with the details:
osr.nsw.gov.au/taxes/transfer_land

Obligations of witnesses

2011-08-10T18:38:00.000-07:00

From 10 June 2011 the Real Property Act 1900 (Section 117(4)) requires a witness to a land dealing or caveat to have known the person signing the dealing or caveat for more than 12 months
OR
They must sight an original primary identification document containing a photograph of the person. (See PDF for list of documents)
Failure to comply may result in fines of up to $2200.
lpma.nsw.gov.au/../2011_05_Confirmation_identity_Mortgagee_Witness_Obligations.pdf

The millionaire mums and dads

2011-04-19T18:56:00.000-07:00

The RP Data list of Australia’s top 25 most expensive suburbs.
NSW has the largest proportion of the most expensive suburbs.

Suburbs that we do conveyancing in are in these positions on the list:
7. Woolwich, NSW - $2.475M
10. Longueville, NSW - $2.31M
17. Mosman, NSW - $2.1M
18. Kirribilli, NSW - $2.088M
19. Clontarf, NSW - $2.075M
20. Balmain East, NSW - $2.073M

The sequence is a bit of a surprise to us.
For the full article see:
switzerbroker.com.au/the-experts/john-mcgrath
*Source: RP Data – numbers rounded to three decimal places

Renter-investors

2011-04-12T18:30:00.000-07:00

Renter-investors can live in a rental by the beach and close to work while still owning property.. The capital gains are important.
switzerbroker.com.au/..mcgrath/the-rise-of-renter-investors

These buyers have to be sensible about their rents (maybe share wisely with others) and also handle the repayments on their investment loans. One person said to us that they can't afford to buy what they lived in and they would not be able to afford the rent that they charged on the unit they owned.

Australia house prices March 2011

2011-03-09T21:35:00.000-08:00

In theory, the price of a home should reflect the value of the services it provides. People who choose to rent their homes buy those services on a monthly basis.
Home prices should therefore reflect the rents that tenants pay. The Economist's index calculates the ratio of prices to rents in 20 economies.
economist.com index

In Australia, that ratio is 56% above the long-run average.
House prices fell from March 2008 to March 2009 (as measured by the weighted average of the eight state capitals), then resumed their rise. In the year to the first quarter of 2010, they jumped by 18.8%!
Maybe something has changed in Australia that now warrants a higher ratio. The Economist's chart suggests some kind of structural break after 2000.
economist.com/../australias_house_prices

If you compare today's price-to-rent ratio with its average over the past ten years, it is overvalued by 12%, not 56%.

Compared with its five-year average, it is overvalued by just 3%.

Protecting the beachhouse

2011-02-01T20:03:00.000-08:00

New laws from January 2011 may help resolve some of the problems arising from property damage due to rising seas, but the strict conditions applying to protection works will make it very difficult for landholders in emergency conditions.

Coastal erosion has been a longstanding problem for many beachfront properties right across the NSW coastline. It is even more of a concern now that climate change is predicted to result in rising sea levels and increased frequency and ferocity of storms.

The emphasis in the new coastal management laws in NSW is on planning, and local councils will now have to develop plans which deal with the impacts of rising seas, the maintenance of any protection works, and their impact – such as increased beach erosion elsewhere.

Consent will only be given for coastal protection works that do not unreasonably limit public access to a beach or headland and when adequate funding is in place to ensure the works can be restored and maintained.

More.. luchetti.com.au/newletter
Also in the newsletter:
Landlord and tenant: Renting laws have been rewritten
Wills: Can I change my mind?
Breaking the contract: When employee can’t just walk away

Holiday Arrangements

2010-11-02T21:12:00.000-07:00

Our offices will be closed
from: 18 December 2010
to: 14 January 2011
(these dates are inclusive)

When it is news it is here

2010-10-02T22:07:00.000-07:00

When the information changes from news to "classic" information (if not advice) we re-write it and put it up on our website.
luchetti.com.au

Contract page 2a

2010-08-29T19:12:00.000-07:00

Conveyancing Alert
There is a new Prescribed Document for annexure to the Contract for Sale of Land from 1 September 2010. The notice with the heading "Warning- Swimming Pools" as a new prescribed document (Item 14, Schedule 1). It also provides that the other prescribed notices currently included in the Contract for Sale of Land -2005 edition (Contract) should be printed in a designated font size.
If the correct prescribed Notices are not attached to a Contract from 1 September 2010, a purchaser may rescind the Contract at any time prior to completion in the case of the "cooling off" notice (clauses 11 and 14) and within 14 days of exchange in the case of the remaining prescribed notices (Clause 16).
The new prescribed notice is required for ALL contracts whether or not there is a swimming pool located on the property.

Buyers market

2010-08-08T20:11:00.000-07:00

We suspect that Sydney property market has entered into a "Buyer's" market.
While we can't substantiate this from the small sample that is our client base we will be on the lookout for internet connections to market outlook information.
Maybe currently the weather is too cold to sell or that the property will get a better price when the garden is in bloom.
But if it is a "Buyer's" market then this means that you, the buyer, call the shots. You might be able to haggle the price or some other thing of value to you.
You may also find that people are suspiciously helpful. They now have the time to spend on you that they did not have six months ago.
If you are buying property for the long term and are financing it with earning from secure employment then all will be well in the long term.
A forced sale shortly after you have bought the property is the major concern. Take the time to check all the things in your circumstances that may make a forced sale happen.
The website realestate.com does not agree with a pessimistic outlook see:
realestate.com.au/../2010-nsw-outlook.htm.
Make up your own mind.
Even though it is a little out of date and not designed for home buyers, see the research for your target NSW area:
housing.nsw.gov.au/..Understanding+the+Housing+Market.htm
The bottom of that page has a list of local housing market analyses.

Electronic Conveyancing System - soon

2010-03-05T16:09:00.000-08:00

National E-Conveyancing Development Ltd (NECDL) is expected to create the system to settle property transactions, lodge instruments with land registries, and pay associated duty and tax obligations electronically. This should mean no increase in the cost of conveyancing services.
How It Will Work
necs.gov.au/Overview
Legal practitioners, conveyancers, banks and mortgage processors will access the system either through system-to-system web services or an Internet browser.
Within the system a shared electronic workspace will be created for each property transaction. Within the shared workspace, the parties will be able to electronically provide, certify and sign information that can be relied upon to update the Title Registers.
Digital Signature Certificates will ensure all information lodged with or delivered from a shared workspace is authenticated and cannot be repudiated.
Financial settlement through the RBA’s Information and Transfer System (RITS) system will ensure all payments and disbursements are received promptly as cleared funds (ie. available immediately).
[more]
When? very soon now, one or two years.
What will it mean to people buying & selling property?
Confusion is likely at first but speed an efficiency will come later.
How connected is your conveyancer?

Strata common property

2009-10-05T16:12:00.000-07:00

The owners corporation can decide by special resolution that it is inappropriate for a particular item to be part of the common property. This decision must not affect the safety or appearance of the strata scheme.
The owners corporation looks after common property and does all the repairs. This includes replacing and renewing common property when needed.
For a checklist of common property see this FairTrading NSW link.

Google RE -v- Domain Radar

2009-10-01T10:25:00.000-07:00

Domain.com.au has responded to Google Real Estate Search with Radar search. It lets you find what specific 'points of interest' you would like to live near or away from, whether it is 'important' or a 'nice to have' and how close to or far away from the point of interest you would like to be.
Google Real estate map search:

We are interested to find out points of difference between Domain and this new service.
So far we have found:
Google is more difficult for sellers, vendors & lessors to add their property
Domain is more expensive (ie. not free).
More information:
maps.google.com.au/realestate
Or go straight to Google real estate search:
http://bit.ly/MN475
Or to Domain's Radar
domain.com.au/../RadarSearch/Search

Land Tax FAQ

2009-09-15T19:20:00.000-07:00

Here are the questions answered on the FAQ (Frequent Questions) page on the NSW Office of State Revenue website:
osr.nsw.gov.au/taxes/land/faqs

Do I have to pay land tax on my principal place of residence?

Who is considered to be a land owner for land tax purposes?

How is land tax calculated?

Do I have to pay land tax on a property that isn't earning any income?

Do I have to pay land tax on properties outside of NSW?

If I sell land part-way through a year, do I get a refund of part of the tax paid?

Do I have to pay land tax if, on 31 December I am in the process of selling my principal place of residence but I have already purchased a new residence?

Do I have to pay land tax on my newly constructed residence if it is not ready for occupancy until after 31 December?

Do I receive a rebate if my land is rented at 31 December and I occupy it as my principal place of residence after this?

Am I liable for a previous owner's unpaid tax?

How does the threshold work if I own several land items?

What happens if my land ownership changes?

I received a land tax assessment in 2005 but have not received an assessment in any other year. Why is this?

In the 2005 tax year, the land tax threshold was abolished and a progressive tax rates scale introduced. For years prior and subsequent to 2005 there is a land tax threshold. This means if the combined land value of your taxable land was under this threshold you are not liable to pay land tax.

Registering for land tax
When do I have to submit a land tax registration?
How many registrations do I need to submit if I own land in various partnerships?
The notice of assessment
What do I do if the information on my notice of assessment is incorrect?
How am I assessed if I own some land individually and some land with other owners?
Why does my land appear on more than one assessment - am I being taxed twice?
Other headings for questions
Clearance certificates
Exemptions and concessions
Companies, concessional companies and trusts
Valuations
Payments

Buyer's agents

2009-09-05T16:39:00.000-07:00

People are quick to get an agent to sell property but slow to use an agent to buy. Buyer's agent have the job of helping people purchase the best property at the lowest price.
They should:

develop a target property profile through discussing the client's objectives and preferences;
search all potential sources of properties that might fit the target property profile;
evaluate properties against the target property profile, making their own investigations of suitable properties and providing their own market appraisal;
disclose all relevant information, both positive and negative;
advise the client to have appropriate inspections done and have the contract reviewed by a solicitor or conveyancer;
develop contract negotiation or bidding strategies with the client;
negotiate or bid as per the client's instructions.

[more]
For more reasons why to use a buyers agent see this article from the magazine Your Mortgage. How buyers agents work

Families in flats built for yuppies

2009-08-14T05:16:00.000-07:00

An academic survey of flat-dwellers in Sydney challenges the common assumption that apartments are predominantly the domain of "yuppie" couples and singles who choose to live there.
High-density housing to solve Sydney's suburban sprawl is increasingly forcing low-income families into unsuitable apartment blocks characterised by poor management and clashes over limited open space.
smh.com.au/../more-families-living.
See also:
luchetti.com.au/../sydney-metropolitan-strategy

Changes to NSW CTs

2009-06-10T04:08:00.000-07:00

Among the changes to the NSW Certificate of Title from 1 June 2009 is a new watermark (you see this when an authentic Certificate of Title is held up to the light). The watermark depicts a series of the NSW floral emblem, the waratah, diagonally placed within an outline of the state of NSW. The complete watermark appears multiple times throughout the Certificate of Title.
Also note the paper specifications, the security paper is 120gsm slightly less (weight and thickness) than previously.
For a look at the new look certificate see the PDF file:
lands.nsw.gov.au/..fact_sheet.pdf

Selling the family home

2009-05-20T04:10:00.000-07:00

Selling the family home is almost always a big deal whether it is because of a death, divorce or even downsizing. It can be a huge wrench when you make the decision to sell, especially if the home is filled with memories. Catherine Bridge explains what can be done to help people 'age in place'.
ABC RN Life Matters - Download the MP3:
abc.net.au/rn/.../lms_20090515_0905.mp3

Heritage listed

2008-10-05T16:52:00.000-07:00

There are several different types of heritage lists. Property owners can face cumbersome battles with the council in an effort to demolish or make renovations to properties protected by heritage legislation.

What is a heritage listing?
Other statutory listings
How to find if a place is listed
How to get legal verification of a listing
Community registers and listings
Effects of Heritage Listing

Find out the significance of the heritage of your property and consider getting legal advice before you make an excavation.
Heritage Listing Explained heritage.nsw.gov.au

Purchasing Strata Property

2008-06-10T04:13:00.000-07:00

A strata scheme is a building (or collection of buildings) where individuals each own a small portion (called a Lot) and where there is also common property (such as external walls, windows, roof, driveways, etc.) which every owner shares.
Before purchasing a strata title property you should be aware of the following issues:

What would I actually own in a strata scheme?
Owners corporation and executive committee
What are levies?
Are there any meetings I would have to attend?
What are the by-laws/lifestyle restrictions?
What should I do before signing a contract?
Buying ‘off the plan’
The contract
Insurance

For the answers to these questions, see the Office of Fair Trading. ..home_owners/Buying_property.
For Strata living generally:
..home_owners/Strata_schemes.html