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PURCHASE OR SALE OF HOUSE OR LAND
Why chooseSouthern Tablelands Conveyancing
 We are able to act for you in all areas of conveyancing.
We specialise in property conveyancing
We will provide legal advice in relation to your transaction
We will keep you and your real estate agent completely informed of the progress of your sale or
purchase
You will receive personal attention from the Dianne Brown who is the licensed conveyancer
We use modern conveyancing computer programs to handle all transactions efficiently
We have online access to NSW Government Land Titles records.
We are an agent for Office of State Revenue and we can pay the stamp duty on your contract and transfer in our office.
What questions should I ask my Conveyancer
It is important that you explain carefully your personal situation and exactly what you want. Finance and time limits need to be discussed.
What will I pay in fees and charges?
What services are included in those fees?
Will, or can there be, any additional charges or costs?
What Government fees will I have to pay?
How long will completion take?
Is there anything I need to do and when do I do it?
Will you personally be handling my file?
How will you keep me up to date with what’s happening?
Buying or selling real estate can be very stressful as you negotiate the sale or purchase of what may be the most important and expensive transaction of your life.
You will need someone who can steer you through the maze called conveyancing and who is an
expert in that field of law
Conveyancing is the term used for the legal work involved in the transfer of ownership of
property
Having a dedicate Licensed Conveyancer and support staff handle all the legal work involved in your next
property sale or purchase will help you make your transaction so much easier.
Buying a Property
When buying a property speak to your Licensed Conveyancer first – you should be aware of:
Your cooling off rights before you enter into the contract
All the costs involved before you commit yourself
Your loan approval should be unconditional and in writing
Your budget – what you can afford before you start to negotiate with the agent
Your rights and obligations if you are a first home purchaser
At Southern Tablelands Conveyancing we can help you understand all aspects of your purchase in a friendly relaxed manner
What does Southern Tablelands Conveayncing offer you when we act on your sale or purchase:
Full UP FRONT fees disclosure – no nasty surprises or hidden costs
After hours and weekends by appointment
Our emphasis is on QUALITY and CLIENT SERVICE
For those in remote areas everything can be arranged by mail and courier
We talk and write in PLAIN ENGLISH
Confidentiality is guaranteed
We keep you fully informed without charging you more for the privilege
We can arrange Deposit Bonds and title insurance if required
Finance for Buying Property
When buying property it’s important to ensure you have unconditional finance approval before
exchanging contracts
The finance approval should be in writing on the letterhead of your finance provider
Often a purchaser has pre-approval of a loan that is conditional on the finance provider
undertaking a valuation of the property
If you exchange contracts on such conditional approval and the property comes in under value,
you may not get the finance.
So, RULE 1 is to ensure you have written, unconditional finance approval before exchanging
contracts
A deposit bond is used instead of a cash deposit
When a property buyer either doesn’t have the cash to pay a deposit or
Doesn’t want to pay the deposit in cash
The Deposit Bond is a guarantee of payment of the deposit to the vendor if the purchaser
defaults
It’s issued by a lending institution or a broker once finance has been approved.
It’s usually used when a purchaser is also selling their existing property
It can only be used if the vendor will accept the bond
It’s becoming more common practice
When is stamp duty payable?
Stamp duty is payable on your contract
If you are borrowing money it will be payable at or before completion
If you are not borrowing money it may be paid within three months from the date of the contract
If you buy off an unregistered plan with a building, it is payable within twelve months of the date
of the contract
If you buy off an unregistered plan that is vacant land, it is payable within three months of the
date of the contract
If you pay your stamp duty late, you will be liable to a fine from the Office of State Revenue
The conveyancing procedure for vacant land is basically the same as for a house except there are no buildings to inspect or insure. You will need to know
What you can do with the land
What you can build on the land
Are there any easements
What building restrictions are registered on the title
Where is the sewer main
Is the block large enough for the house you want to build.
What does “Exchanging Contracts” mean?
The buyer and seller agree on a price and the conditions of the sale
The agreed terms are incorporated into the Contract
Contracts are drawn up in duplicate and one copy is signed by the seller and one copy is signed
by the buyer
The buyer pays the deposit
Contracts are exchanged so that the Licensed Convyancer for each party holds the copy signed by the other
party
Until the contracts are exchanged either party can withdraw from the transaction. It’s only when
contracts are exchanged that the contract becomes binding.
What is a “cooling off period”?
Every contract for the sale of a residential property has a cooling off period of five working days
to allow a buyer to organise finance and inspections once the contract has been exchanged
The seller is unable to withdraw from the sale during this period, however, the buyer may rescind
the contract if they decide not to proceed
If the buyer rescinds the contract he must pay the seller 0.25% of the purchase price.
The buyer can waive the cooling off period by having the contract explained to them by their
Solicitor and signing a Section 66W Certificate
There is no cooling off period if the property is being sold at public auction
If you are buying a property, before the exchange of contracts, your Licensed Conveyancer will:
Explain the contract to you
Organise pest and building inspections
Obtain surveys and council building certificates
Discuss your financial position and talk to your lender to ensure you have formal loan approval
Negotiate with the seller’s Licensed Conveayncer any special requirements such as an extended settlement
period or the amount of deposit to be paid
Keep you informed
GOODS & SERVICES TAX
The GST came into effect on the 1st July 2000 and is a tax on goods and services at a rate of 10%. Whilst the GST is collected by the Commonwealth, all the proceeds go to the States. Non profit organisations are also included. Small businesses with an annual turn over of less than $50,000 can elect not to register.
The GST is a most complicated and difficult area of the law. Whether the GST attaches to the sale of real estate depends on:
i. Whether the premises are new, and
ii. Whether they are residential or commercial.
Sales of existing residential homes are generally not affected. The sale of new residential premises will, if the vendor is registered for GST, be subject to that tax. New residential premises are residential premises that:
· Have not previously been sold as residential premises, or not been the subject of a long term lease.
· Have been created by renovations, including the removal of or the reconstruction of all of a building or substantially all of a building.
· Have been built to replace premises that have been demolished on the same piece of land.
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It’s important to plan for the costs involved in buying a home. Here’s a list of some of the expenses involved to help you budget:
Your loan will have an application fee, a valuation fee and mortgage insurance and there may be
other fees charged by your lender
Conveyancing fee
Disbursements – money your solicitor has to spend on your behalf for title and statutory
searches
Inspection fees – for building and pest inspections. If you are buying a strata unit you will need a
strata inspection report
Stamp duty – if you are not a first home buyer you will pay stamp duty on the purchase price of
the property
Stamp duty on your mortgage
Building insurance – you will need to insure the property you are purchasing from the date of
settlement
1st HOME OWNERS
The advantage of being a first home buyer
You are exempt from paying stamp duty on the contract and any mortgage if you’ve never owned
a home in NSW and the property is less than $500,000
You are entitled to a concession on stamp duty if the property is more than $500,000 and less
than $600,000
You are entitled to a grant of $7,000 if you’ve never owned a home in Australia, but,
At least one purchaser must be a permanent resident of Australia, and
The property you are buying must be your permanent place of residence.
Speak to us to find out more about your entitlements as a first home buyer
MORTGAGES
An arrangement whereby property is used as a security for a loan is called a mortgage. The mortgagee/lender has a direct interest in the property and the owner's Certificate of Title is held by the lender until the mortgage is discharged.
An owner may sell the property before the mortgage is repaid but to do so will require the mortgage to be discharged.
Mortgages are available from various sources and each financial institution has a different policy including interest rates, terms, conditions and lending policies.
A mortgage broker may be able to assist you in obtaining the loan most suitable to your needs.
FINANCE FOR PROPERTY
When buying property it’s important to ensure you have unconditional finance approval before
exchanging contracts
The finance approval should be in writing on the letterhead of your finance provider
Often a purchaser has pre-approval of a loan that is conditional on the finance provider
undertaking a valuation of the property
If you exchange contracts on such conditional approval and the property comes in under value,
you may not get the finance.
So, RULE 1 is to ensure you have written, unconditional finance approval before exchanging
contracts
TITLE INSURANCE
Have you heard of Title Insurance?
Title insurance protects against loss from defects that already exist in the title
No survey report or building certificate? Title insurance may be of use to you
Some examples of the risks that title insurance protects are :
- Forced removal by Council of an illegal structure built by a previous owner without Council
approval
- Any issue that would have been revealed in an up to date survey report
- Forced removal or relocation of a structure because it encroaches over an easement or
onto the neighbour’s property
ON & BEFORE SETTLEMENT
You are about to take possession of your new home. But don’t forget this –
Insurance
Normally, insurance risk passes on settlement day – unless you take possession before settlement
All building insurance should be put in place before the purchase is settled.
Your lender will want a copy of the policy before they agree to settle
Final inspection
You are entitled to, and should always carry out, a final inspection of the property before
settlement to make sure that the property is in the same condition as when first inspected and to
see that all inclusions are left on the property
What happens with Council rates at settlement?
Council rates are levied for the financial year
On settlement they are adjusted so that the vendor pays the rates up to the date of settlement
The purchaser is then liable from settlement until the end of the rating period
Rates are a charge on the land and any outstanding rates become the responsibility of the
purchaser
It is essential that they are paid to date of settlement
You Licensed Conveyancer will make sure the rates are adjusted appropriately
SELLING A PROPERTY
A seller is not required by law to attach a survey report or a council building certificate to a contract for the sale of land. However if you want a quick exchange it is worth the expense (approximately $770.00) to provide a survey report and a council building certificate in your contract so that
Your agent can market your property with all the relevant information available
There will be no delay (sometimes as long as 5 weeks) while the purchaser obtains the survey and building certificate
You know at the outset if council will not issue a building certificate
You can rectify any problems in relation to the non-issue of a building certificate before the property is put on the market.
It could make the difference between a purchaser buying your property or a similar property
If you want to sell an investment property with vacant possession and you have a tenant you need to know:
A tenant is not bound to move out of the property until:
-The term of the lease has expired, or
-A notice to vacate has been served
You should be sure that the term of the lease has or will expire before the settlement is due or
You must give 30 days notice to vacate to the tenant
You should arrange with your managing agent to give the notice immediately contracts are
exchanged and make sure the contract is more than 30 days in duration
Either you as the landlord or your managing estate agent must give the notice to the tenant.
Your Licensed Conveayncer cannot give the notice.
On the day you settle your sale you need to:
Make arrangements to vacate the premises by the time of settlement
The property should be left in a clean and tidy condition and all possessions removed from the
property.
The buyer does not have to settle if you have not left the property vacant by the settlement time
You might consider moving out the day before settlement but remember you are still liable for
insurance and the safety of the premises until settlement takes place
If you are selling and buying simultaneously you may be en-route to the property you are buying
while the settlement takes place. If this is the case make sure you are available to be contacted
in case something goes wrong or there is a hold up in the settlement.
PROPERTY OWNERSHIP
Who owns your property?
If you share ownership of a property with another person, or other people, the joint ownership will be held in one of two ways. Either as -
Joint tenants – each person owns the property jointly and on the death of one, the property
automatically passes to the remaining joint tenant or tenants, or
Tenants in common – each person owns the property and on the death of one person that share
passes to whoever inherits their estate. As a tenant in common you can sell or gift your share to
whom you choose
What is community title?
A type of subdivision of land where owners share the use of community land set aside for:
Parks, playgrounds, swimming pools etc
May incorporate a block of units
With freestanding houses
Shops
Maybe a golf course
It is a flexible way of developing land and small communities
Each owner contributes levies for the cost of maintaining the communal property
RETIREMENT VILLAGES
Retirement villages are buildings or complexes predominantly for people 55 years or older or who are retired and who have entered a village contract with the operator of a village.
The operator may own the village or be a separate person engaged under an agreement to manage the village.
The Retirement Villages Act and Regulations commenced in 2000 and the Act applies to both charitable and privately owned retirement villages, but does not apply to residential parks or boarding houses.
The Act makes provision about issues including deposits, termination, refunds, disclosure of information and advertising.
When entering a retirement village agreement, the operator must provide a signed and dated disclosure statement in compliance with the regulations.
TERMS USED IN CONVEYANCING
A summary of some of the terms used in conveyancing to assist you in understanding the terms used by your Solicitor throughout the transfer process –
Adjustment Date – the date on which the council and water rates and possibly land tax are adjusted for payment
Agent – A person authorised to act on behalf of another person in the sale, purchase, letting or management of a property. A real estate agent must be licensed by the Office of Fair Trading.
Auction – A public auction sale where the property is sold to the highest bidder.
Bank Cheque – A cheque issued by a bank, which is guaranteed by the bank and is as secure as cash, except that there may be a clearance period on the bank cheque.
Boundary – A line separating adjoining properties
Breach of Contract – Where one of the parties breaks one or more conditions of the contract.
Bridging Finance – Short term finance that has been arranged until long term funding can be set in place.
Capital Gain – The financial gain obtained when you sell an asset for more than you paid for it
Caveat – A legal notice by a person having a (caveatable) interest in the property which may prevent the transfer of the title.
Caveat Emptor “Let the buyer beware” – This principle of law puts onus on the buyer to be satisfied with the property before buying. Therefore, it is essential the buyer undertakes pre-purchase enquiries.
Certificate of Title – A document issued by Land & Property Information detailing the owner, a legal description of the property and any other interests, such as mortgages, in the property.
Chattel – Personal property, a moveable article such as furniture
Contract for Sale – A written agreement, signed by both parties, which sets out the terms and conditions of the sale, description of the property, the price, inclusions and completion date.
Conveyance – The transfer of ownership of property from the sellers name to the buyer's name.
Conveyancer – A person licensed by the Department of Fair Trading to practice conveyancing in New South Wales
Conveyancing
The legal process for the transfer of ownership of real estate
Cooling off Period – The current legislation provides a period of 5 business days from date of exchange of contracts in which (only) the purchaser may cancel the contract for the purchase of residential property.
Covenant – A notation on a title deed which imposes an obligation to terms, conditions or restrictions regarding the property.
Deposit – An agreed amount (usually 10%) of the purchase price, which is paid by the purchaser at exchange of contracts and usually held by the estate agent until completion.
Deposit Bonds – This is a guarantee issued by an insurance company that the purchaser will pay the full deposit by the due date. There is a fee for these bonds and they are regularly used instead of money as a deposit. Conditions apply.
Deposited Plan – A plan of subdivision deposited at Land & Property Information. Commonly called a DP.
Disbursements – Miscellaneous fees and charges incurred during the conveyancing process, including search fees and charges paid to Government authorities.
Discharge of Mortgage – A document signed by the lender and given to the borrower when a mortgage loan has been repaid in full.
Drainage Easement – The right to drain water over another property.
Easement – A right by a person who is not the owner of the property, to use or have access over part of that land.
Encroachment – The action of one person intruding upon land over which they have no right.
Encumbrance –An outstanding liability or charge on a property.
Exchange of Contracts – The time at which the Agreement for Sale becomes binding on both parties, the agreed deposit is paid and the cooling off period commences.
Exclusions – Items which are specifically excluded from the sale.
Fittings – Goods or articles that can be removed from the property without causing damage to it.
Fixtures – Items such as built in cupboards, stoves, etc which are fixed to the property and cannot be removed without causing damage. There is still argument about what constitutes a fixture so these should be detailed in depth in the contract.
Final Inspection – An inspection of the property, prior to completion, to determine that the property is in the same state and condition that it was at the date of exchange of contracts
Gazumping – Gazumping is when a purchaser’s offer has been accepted and the purchaser begins pre-contract enquiries, only to find that the seller has accepted a higher offer from someone else.
Inclusions – Items which are specifically included in the sale.
Inventory – a list of items included with a property, usually furniture, furnishings, moveable items etc.
Joint Tenant – Ownership of a property in equal shares, where if one owner dies his/her share passes to the surviving owner/s.
Land Tax – A tax levied by the State Government against some owners of property and based on the value of the property.
Lot – Each block of land, unit, townhouse, villa is given a lot number.
LPI – Land and Property Information (formerly Land Titles Office)
Mortgage – Any charge on land created merely for securing the payment of a debt.
Mortgage Broker – A person or organisation offering to organise or broker loans from a group of lenders.
Mortgagee – A person who lends the money to another where the loan is secured by taking a mortgage over the borrower’s property.
Mortgagor – The proprietor of land or of any estate or interest in land pledged as security for the payment of a debt in favour of the mortgagee.
OFT – Office of Fair Trading
Old System Title – The title system which pre-dated the Torrens system and still exists in some properties today. Old system title to a property was proved by demonstrating an unbroken chain in title.
Option to Purchase – A legal document giving a person a right to buy. In the document the price and period are specified. A fee is paid and if the person proceeds to buy the property the amount of the fee comes off the purchase price. If the person does not proceed to buy the property the fee is forfeited to the seller.
OSR - Office of State Revenue
Owners Corporation – the owners of lots in a strata title scheme.
Purchaser – A person who buys a property (buyer).
Proprietor – The owner of the land.
Rescission of Contract – A right to cancel a contract because of the other party’s non-compliance with terms of the contract.
Restriction on user – A restriction on the use of the land usually imposed by the original developer and/or council.
Right of Way – A right by a person who is not the owner of the property, to use or have access over part of that land.
Settlement – The settlement (or completion) of the sale whereby the purchaser pays the balance of the purchase money, the vendor gives the purchaser possession of the property and gives the title deed and the Transfer to the purchaser or his lender.
Stamp Duty – This is a tax charged by the State Government for which the purchaser will be liable, unless entitled to an exemption.
Strata Title – The subdivision of a property into lots and common property. The lots are the units or other areas owned by the owners and the common property is everything that does not form part of a lot and is owned by the owners corporation (all the owners collectively.)
Survey – A plan that shows the boundaries of a block of land and the positioning of any building/s on that land.
Tenant in Common – Joint ownership of property and may be in equal or unequal shares. Each joint owner may dispose of their share in the property independently and unlike Joint Tenancy, the shares do not automatically pass to the other owners in the event of death.
Title Deed – Document disclosing the legal description and ownership of a property.
Torrens Title – A term used to describe the system of land (or land's) registration expressed in NSW in the Real Property Act. This type of title is guaranteed by the State Government, except in some cases of fraud.
Transfer –A document registered with the Land and Property Information that confirms the change of ownership as noted on the Title.
Unencumbered – Describes a property free of mortgages, covenants, restrictions etc.
Valuation – A report detailing a professional opinion of a property’s value.
Vendor – A person who offers a property for sale (seller).
Zoning – A qualification on the allowable use of the property, imposed by Council.
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