How Does The Property Occupations Act 2014 (QLD) (“POA”) Affect The Contract?

Application of Property Occupations Act (POA)

Property Occupations Act 2014 (QLD) contains provisions relating to the sale of residential property. Those provisions apply to contracts for the sale of property that is used, or is intended to be used, for residential purposes but will not apply to a contract:

1. for the sale of property where it is used primarily for industry, commerce, or primary production;
2. formed on a sale by auction (directly on the fall of the hammer by outcry or directly at the end of another similar type of competition for purchase);
3. entered into, no later than 5.00 pm on the second clear business day after the Property was passed in at auction with a registered bidder for the auction;
4. formed because of the exercise of an option granted under an earlier agreement if the parties to the Contract are the same parties as in the earlier agreement;
5. where the Buyer is:

• a publicly listed corporation; or
• a subsidiary of a publicly listed corporation; or
• the State or a statutory body; or
• purchasing at least three lots at the same time (even if under separate contracts).

Cooling-off Period

If Property Occupations Act 2014 (POA) applies, you may be entitled to a five-business-day cooling-off period.

The cooling-off period starts on the day you receive from the Seller or their agent a copy of the contract signed by both parties or, if that day is not a business day, on the next business day. If the Seller signed the Contract before you did, the cooling-off period starts on the day you signed the Contract and communicated your acceptance to the Seller.

The cooling-off period ends at 5:00 pm on the 5th business day.

You are entitled to terminate the Contract during the cooling-off period. If you do, the Seller may retain a penalty of 0.25% of the purchase price from the deposit paid under the Contract. The balance of the deposit (if any) must be refunded to you within 14 days after termination.

If you terminate the Contract and later decide you would like to purchase the Property, there is a risk that the Seller will not enter into another contract with you.

If you decide to terminate the Contract during the cooling-off period you should tell us as soon as possible so we can give notice before the period ends.

You may shorten the cooling-off period or waive the benefit of it entirely by giving written notice to the Seller of the shortening or the waiver. It is up to you whether you wish to do this.

• Particular Words Must Be in the Contract

If Property Occupations Act (POA) applies, the Seller is required to ensure that, when they first give you the proposed Contract for signing, it contains a conspicuously written note (immediately above and on the same page where you sign to indicate your intention to be bound by the Contract) which draws your attention to the cooling-off period and the termination penalty. It must also include a recommendation that you obtain an independent property valuation and independent legal advice before signing the Contract.

If the required statement is not included in the Contract, the Seller or the Seller’s agent may have committed an offence under a Property Occupations Act (POA) and be liable to a fine. Please note that any non-compliance will not affect the validity of the Contract or give you a right of termination.

• Valuation

The note recommends that you obtain an independent valuation of the Property. We endorse this recommendation but do not provide valuation advice. The price is something you need to satisfy yourself about. The Contract is not conditional on a valuation. If you do not want to proceed without a valuation, you will have to obtain it before entering the Contract or expiry of the cooling-off period.

Visit our main article here: Property Occupations Act 2014 

How to Save Costs on Your Next Property Conveyancing Transaction

With Slater + Gordon announcing the closure of their Conveyancing Works division, it is timely that Aylward Game Solicitors have launched their partnership with Nectar mortgage brokers to offer high quality, full service residential conveyancing at a discounted rate.

Clients who arrange their finance for the purchase of a home through Nectar and engage Aylward Game Solicitors to undertake their conveyancing will benefit from a reduced cost of conveyancing.

As a result of the partnership between Nectar and Aylward Game Solicitors, Aylward Game will apply the commission received from Nectar to reduce their standard professional fees for arranging the conveyancing on a residential property purchase – reducing your cost without compromising quality.

Conveyancing in Queensland is complex and is affected by at least 20 different pieces of State and Federal legislation, contract conditions, extensive case law and practice guidelines. Many things in a conveyance may not go as expected.

Here at Aylward game, we do not seek to be the lowest cost provider of conveyancing.

We are highly experienced in all conveyancing matters and are able to guide our clients through any issues that arise, helping our clients to avoid costly liability and compensation issues and to reduce the stress that they face as they journey through this potentially complex legal process.

All conveyancing work is performed by experienced solicitors under the daily supervision of our principal, Mark Game, a solicitor with over 30 years experience in all aspects of the property, both residential and commercial.

“The initial joy of a low price or cheap conveyancing is soon lost by the stress caused by not having an experienced guide at your side during one of life’s major transactions”

Save Points On Your Interest Rates, And Cash On Your Conveyancing Fee”

Don’t just go to one bank… go to them all with Nectar on their portal here.

Buying An Existing Property Or vacant land

Experience matters when progressing through the conveyancing process. We can guide you through the pitfalls with your simple and complex commercial and residential property conveyancing matters. We take the guesswork away by reviewing your contract to identify issues and key dates for example your cooling off period, building & pest inspections, finance, and hidden clauses. We can recommend and undertake advanced searches. Finally, we prepare you for settlement, including paying stamp duty, calculating settlement adjustments for rates and water rates, or body corporate fees.

Selling An Existing Property Or Vacant Land

Selling your property is stressful enough. Let us ease your burden by keeping you aware of the important responsibilities you have as a property seller. We will guide you through the sale process ensuring that you meet all statutory requirements and responding to queries from the buyer’s solicitor to generally make the process as smooth as possible. We prepare you for settlement, including calculating settlement adjustments for rates and water rates and, where applicable, body corporate fees and liaising with your real estate agent and the buyer’s solicitor to ensure a smooth settlement with funds banked to your account quickly following settlement.

Off The Plan Purchases

Buying “off the plan” has become increasingly popular but there are a number of factors additional to those in a standard purchase, particularly because the asset you are buying is not built yet! We will perform a review of the contract and disclosure documents to advise you on how to best protect yourself against the additional risks. We will work with you throughout the full buying process, performing initial searches, and further searches once your plan has registered. Finally, we work with you in the period from plan registration to settlement.

Non-Standard Conveyancing Contracts

Our conveyancing solicitors are highly experienced in advising you on these types of property and conveyancing contract matters. Whilst contacting us early is important for all such transactions it is paramount for these contracts. We have assisted thousands of clients on commercial contracts (involving Land and Sale of Business transactions), Vendor Finance/Instalment Contracts, Leases, and many more Queensland property transactions. We can also advise you on caveats, easements, and other encumbrances on a lot and the most effective means of dealing with these matters.

We have introduced this in the hopes of saving our clients money on their conveyancing without reducing the high standard of work we perform. This is full-service conveyancing with fees subsidised by the finance broker Nectar.

Mark Game, the partner responsible for property transactions at Aylward Game solicitors welcomed the new arrangement “It is vital to ensure that you appoint an experienced solicitor to look after your property purchase, and ensure that you avoid the many pitfalls that can trap the unwary or unprepared. We are delighted to be able to offer our quality conveyancing service in association with Nectar”.

This will help our clients to save some money without compromising on the quality of service.

Needing more information on Cheap Conveyancing Brisbane?

Contact The Best Brisbane Lawyers For a Free Case Evaluation

Best Brisbane Lawyers are Standing by to Provide A Free Case Evaluation so Visit us Anytime at our Brisbane Solicitors or Call (1800) 217 217

https://www.aylwardgame.com.au/contact/

Article Source: Property Conveyancing Transaction 

The hidden costs of property investment that nobody talks about

 

Are you considering investing your money in an investment property and becoming a property investor?

If yes, you need to know what costs are involved and how to establish the best ownership structure for your asset. As many newcomers find out – it is not always a simple process to make an investment, especially in property, and it can be even more challenging to find the best ownership structure that fits your needs and requirements whilst minimizing your long-term costs.

To avoid any unpleasant surprises, it is advisable to do some research first and become well aware of the hidden costs that nobody talks about:

• If you have never invested in any kind of real property before, it may come as a surprise that you will need to have financial means to cover more than just the price of the property.
• There are certain costs that must be managed by you, as the investor, so you need to be prepared. The lender’s mortgage insurance is one possible cost if you are intending to obtain a loan to cover a high percentage of the property’s price.
• There is also the loan application fee, which may be a few hundred dollars, and the stamp duty and registration fees, which is probably one of the largest fees you will need to pay and will possibly amount to thousands of dollars.
• Other costs may include building inspections, pool inspections, pest inspections, accountancy fees, a property manager, maintenance and insurance, and hiring a trustworthy and experienced solicitor to help you with the legal part of the purchasing process.

Considerate planning.

There are some items in the checklist which need your careful consideration when you are planning to invest in property and work out affordability.

When deciding to proceed with investment in property, you should also think about the structure of the ownership. Again, the choice depends very much on your set goals, ability to take risks, financial strength, and other aspects. So, you need to put in balance several options and see which one suits you.

Get advice and guidance.

Matters such as your ownership structure offer quite a few options to consider. Individual or joint ownership, ownership through a company, partnership, or trust, or ownership via your Self-Managed Superannuation Fund each carry associated risk and reward profiles.

Each structure has pros and cons for your unique scenario, so you will need to look at each option and make the correct choice for you. Doing this in the correct manner right from the start will help you manage your risks and will get you closer to the investment goals you want to reach. Since investing in property involves a considerable amount of money, you are well-advised to do things the right way from the start.

In all this process, there is one part that is often very challenging for most investors. Even if you are an excellent business person and have great management skills, the legal chapter may be hard to tackle. That’s why you need an experienced property lawyer you can trust.

Aylward Game is a Brisbane, Gold Coast and Sunshine Coast legal practice with a great reputation and key knowledge in the property law area. Our professional staff is experienced in all aspects of buying and selling a property, both commercial and residential.

Speak with us today on 1800 217 217.

For more information on selling, buying and vendor finance please visit our Brisbane law news section.

To speak with an expert in the area, contact 1800 217 217 to arrange a consultation.

Contact
United Service Club
Level 4, 183 Wickham Terrace, Brisbane QLD 4001

Free: 1800 217 217
Phone: 07 3236 0001
Fax: 07 3236 0005
Email: mail@aylwardgame.com.au

Article Source: Property investment

Why Do I Need Property Insurance Right Away?

Buying a new property is an exciting time, whether it’s your very first purchase or yet another in a string of purchases. Generally, a property settlement takes 30 days before you can officially take ownership of the new house or apartment, but there is one key point that often spreads confusion; particularly among first-time home buyers. (property insurance)

And that is the subject of insurance on the newly purchased property.

Once you’ve signed the contract, one of the very first things you’ll be advised to do is take out insurance on that property from day one.

But wait. I don’t officially take ownership of the property for another 30 days.

True and not true. Yes, it’ll be 30 days before you officially take full control of the property and can start moving in all your prized possessions, but under property law, your contract will state that from the first business day after signing the contract you’ll be liable for the property you just purchased.

If the property is damaged during the settlement period, you (the buyer) cannot pull out of the contract and still have to go through with the purchase as is. Also, it’s important to include public liability insurance in the event someone is injured while still occupying the property during the settlement period.

Immediate Insurance Coverage

Taking out immediate insurance on the property is the answer to this dilemma and it’s important to understand that this is a necessity on standard contracts, and not really something you’ll want to consider as optional.

Your experienced property lawyer or even your real estate agent will strongly advise you to do so ASAP, and you should definitely heed this advice. What you don’t want is for your excitement to turn into extreme regret, simply because you failed to cover yourself during the process.

There are a few exceptions regarding being able to back out of the deal. For example, if the house burnt to the ground during the settlement period and you didn’t have insurance, you would not be required to continue on with the contract to purchase. Put simply, any circumstance that renders the property unfit for occupation.

Talk To An Expert In Property Law

At Aylward Game Solicitors in Brisbane, we specialise in property law and property conveyancing. If you have any questions about the purchase of a property and the insurance requirements, be sure to talk to us on 1800217217 first.

Article Source: Property Insurance 

What Everyone Ought To Know Before Buying a Display Home

 

Buying a display home as an investment property and leasing it back to the builder for a premium rent for the life of the display village may seem like a great investment. However, a commonly overlooked aspect of this type of transaction is whether the house is covered by the Queensland Building and Construction Commission (QBCC) Home Warranty Scheme.

QBCC Home Warranty Scheme

The Queensland Home Warranty Scheme is a compulsory statutory insurance scheme for residential construction work carried out in Queensland. The scheme provides a degree of protection for homeowners (or future homeowners) from faulty or defective construction work completed by a licensed builder for a period of 6 years and 6 months.

Should you discover any faulty or defective structural work in this period and the builder fails to rectify this work, you are entitled to make a claim through QBCC.

The Home Warranty Scheme attaches to the construction work and can also be relied on by future owners of the home.

Home Warranty Scheme and Display Home

When you purchase a new house you are often provided with a QBCC Notice of Cover as confirmation that the new house is covered for the 6 years and 6 month period under the Queensland Home Warranty Scheme.
In some instances the Seller of a Display Home may also provide the purchaser with this notice of cover and the transaction will proceed with both parties assuming the home is covered by the Home Warranty Scheme. However, the legislation provides that the Home Warranty Scheme is only applicable to construction work carried out on a residence.

A residence is defined in the legislation as a structure used for residential purposes. Unfortunately, the legislation does not define residential purposes and purchasers may be left wondering whether a Display Home falls within this category.

Our recent investigations with QBCC revealed that the use of a property as a Display Home does not come within the definition of residential purposes. This means that a purchaser may be left with defective or faulty construction work and no avenue to claim through QBCC.

Effect on Purchaser

Most builders and Purchasers will not be aware that the Notice of Cover issued for the construction work does not actually cover their Display Home and should, in fact, be revoked by QBCC. The Builder and Purchaser, unaware of this, will proceed with the transaction and assume the Display Home is covered under the Home Warranty Scheme.

The practical reality of this situation is that if a future homeowner proceeds to make a claim through QBCC they may be making a fraudulent insurance claim.

Even if the Display Home is converted to a residence at a later date the construction work is still not covered under the Home Warranty Scheme as the legislation only provides for the revoking of the Notice of Cover.

Regulating your transaction

It is currently difficult for Purchasers to determine if the Home Warranty Scheme applies to their purchase. In some circumstances, Purchasers may not even be aware that the property they are purchasing has previously been used as a Display Home. One method of regulating this might be to add a section to Form 24 – Property Information, requiring the Seller to state if the property has ever been used for a purpose other than a residential purpose.

At present, without adequate regulation, the Purchaser is reliant on their solicitor to pick up this issue and advise them accordingly. If the Purchaser is aware of this issue prior to entering into a contract they may be in a stronger position to negotiate and reduce the risks associated with purchasing a property not covered under the Home Warranty Scheme. If you have any concerns that a property you are selling or purchasing has been used as a display home, or for that matter any other commercial purpose, please contact your solicitor.

How Can We Help

At Aylward Game Solicitors we pride ourselves on working toward a standard, not a price. It was through thorough investigation and attention to detail that this potential issue was revealed and we were able to inform our client and proceed with the transaction fully aware. If you are looking at purchasing or selling a Display Home and would like to discuss the QBCC Home Warranty Scheme, please do not hesitate to call our office on (07) 3236 0001.

Article Source: Buying a Display Home