obiter | The ByLawyers Blog
  • Publication updates
    • Federal
    • New South Wales
    • Victoria
    • Queensland
    • South Australia
    • Western Australia
    • Northern Territory
    • Tasmania
    • Australian Capital Territory
  • By area of law
    • Bankruptcy and Liquidation
    • Business and Franchise
    • Companies, Trusts, Partnerships and Superannuation
    • Conveyancing and Property
    • Criminal Law
    • Defamation and Protecting Reputation
    • Employment Law
    • Family Law
    • Immigration
    • Litigation
    • Neighbourhood Disputes
    • Personal injury
    • Personal Property Securities
    • Practice Management
    • Security of Payments
    • Trade Marks
    • Wills and Estates
  • Legal alerts
  • Articles
  • About
    • Tips & Tricks
      • General user
      • LEAP user
    • Contact
    • Our authors
  • Question of the week
  • By Lawyers

GST withholding – how does it work?

July 11, 2018 By By Lawyers

The new GST withholding obligations are discussed in detail in the By Lawyers Purchase commentaries for each state, under the heading ‘Withholding payment of GST on purchase of certain real property’.

By way of summary, from 1 July 2018 purchasers of new residential premises or potential residential land are required to withhold an amount of the contract price and pay this directly to the ATO as part of the settlement process.

This does not affect the sales of existing residential properties, or the sales of new or existing commercial properties. However, for all residential premises or potential residential land, if the the vendor is registered, or required to be registered, for GST then they must notify the purchaser as to whether or not GST withholding applies – even if it does not apply.

Where withholding applies, purchasers need to:

  • split the amount of GST from the total purchase price;
  • pay the GST component directly to the ATO as a disbursement at settlement;
  • pay the GST exclusive purchase price to the vendor.

The liability for the GST remains with the vendor and there are no changes to how vendors lodge their business activity statements.

Filed Under: Conveyancing and Property, Publication Updates Tagged With: conveyancing, Conveyancing & Property, gst, gst withholding, property, purchase, sale

A brief explanation of the move to e-conveyancing – PEXA settlements

June 21, 2018 By By Lawyers

Electronic conveyancing is coming

The conduct of a sale and purchase up to and including exchange can and will remain unchanged for some time as practitioners adapt to conducting matters electronically using emails and software that is currently being introduced into the market.

It is in fact possible today to prepare, submit, negotiate, sign and exchange contracts without the use of paper. Those practitioners interested in joining this move away from paper will find the means to do so within the By Lawyers conveyancing guides.

Electronic settlement has already arrived

However, the focus of this explanatory paper is the electronic settlement process – currently available via PEXA, but soon also via SYMPLI, a joint venture of Infotrack and the ASX.

So, how does PEXA work?

The PEXA process that follows exchange requires all participants in the transaction to have been identified, be registered and have a PEXA digital certification that entitles them to transact electronically in what is known as a ‘workspace’.

A workspace in the electronic conveyancing platform is opened by the vendor, or failing the vendor any other party, for each transaction and a date and time for settlement is entered. When the workspace is created the vendor ‘invites’ all other parties to the workspace via PEXA.

The workspace is where the transaction occurs. As the transaction progresses, each party can add, remove or amend their information in the workspace.

Whilst such matters as requisitions and settlement adjustments are completed outside the workspace, they can be uploaded to the workspace and made visible to a party of choice. For instance, a discharge authority might be made visible to the vendor’s discharging mortgagee only.

The vendor and purchaser sign a paper Client Authorisation allowing their practitioner to sign for them, as it is the practitioner who has the authority through their Digital Certificate to sign for clients. Therefore, the Client Authorisation is a critical document and must be retained for 7 years as they may be audited.

Outgoing and incoming mortgagees make their arrangements for settlement without input from practitioners. Payment directions are communicated by entry into a Financial Settlement Schedule which contains tabs for Source Funds and Disbursements.

Each party to the transaction completes their tasks prior to the nominated settlement time and for settlement to take place as planned, the Settlement Schedule must balance, the source funds must be available, and all documents must be signed.

How does settlement occur?

The workspace is locked automatically once everything is ready. This triggers title verification and movement of the source funds into a holding account. A final search is not required as the workspace will not lock if there are title impediments to registration.

Settlement occurs exactly as scheduled and title documents are lodged and registered, and the settlement funds disbursed in accordance with the Financial Settlement Schedule. The settlement process is automatic and completed in about 15 minutes which sees cleared funds transferred and title registered.

Note settlement can be cancelled at any time prior to the locking of the workspace.

The way of the future

 

The electronic settlement process is remarkably efficient and easy once you get used to it. As it seems inevitable that electronic settlements – and ultimately electronic conveyancing – will become standard practice, it is well worth becoming familiar with it and its really not so hard to do. By Lawyers conveyancing guides can assist you.

Filed Under: Articles, Conveyancing and Property, Legal Alerts, New South Wales, Queensland, South Australia, Victoria, Western Australia Tagged With: contract, conveyancing, Conveyancing & Property, e-conveyancing, e-settlement, electronic conveyancing, electronic lodgement, electronic lodgment, electronic settlement, PEXA, purchase, sale, SYMPLI

Electronic conveyancing – Are you ready?

June 19, 2018 By By Lawyers

As the timeline towards mandatory electronic conveyancing marches on, By Lawyers continues to make changes to our matter plans and precedents to make sure that you are ready and that completing your matters electronically is as easy as possible.

Our matter plans have been split after ‘Mid transaction’ into ‘Paper transaction – Through to settlement’ and ‘Electronic transaction – Through to settlement’.

Precedent letters have been updated and where necessary new precedents included to cover electronic transactions.

By Lawyers helps you make a seamless transition to the new regime.

Filed Under: Conveyancing and Property, New South Wales, Publication Updates, Queensland, South Australia, Victoria, Western Australia Tagged With: conveyancing, Conveyancing & Property, e-conveyancing, e-settlement, electronic conveyancing, electronic settlement, PEXA, purchase, sale

Conveyancing – GST withholding – additional commentary, amendments to contracts and precedents

May 7, 2018 By By Lawyers

The requirement for purchasers to withhold and remit GST on taxable supplies of certain real property under subdivision 14-E Schedule 1 Taxation Administration Act 1953 comes into force on 1 July 2018. This applies to all contracts that settle after 1 July. The transitional arrangements are that contracts entered into prior to 1 July 2018 and settle before 1 July 2020 are exempt from the withholding regime.

The sale and purchase commentaries in all states have been updated, the By Lawyers contracts in NSW and VIC have appropriate new provisions and precedent letters are being updated.

Filed Under: Conveyancing and Property, Legal Alerts, New South Wales, Publication Updates, Queensland, South Australia, Tasmania, Victoria, Western Australia Tagged With: By Lawyers contract, conveyancing, Conveyancing & Property, gst, gst withholding, purchase, sale

Planning Certificates

March 15, 2018 By By Lawyers

Section 149 Planning Certificates are now known as Section 10.7 Planning Certificates following changes to the Environmental Planning and Assessment Act.

Filed Under: Conveyancing and Property, Legal Alerts, New South Wales Tagged With: 149 certificate, conveyancing, Conveyancing & Property, NSW, Planning certificate

By Lawyers Contract of Sale of Land – Victoria

March 1, 2018 By By Lawyers

A new form of contract, co-authored by Russell Cocks, providing a vendor’s statement and contract in one document.

The contract is specifically designed for residential conveyancing transactions and seeks to smooth some of the traditional road blocks that arise in these transactions.

The By Lawyers Contract of Sale of Land is located in the Contract folder in the Sale of Real Property Guide.

Seven reasons to use the By Lawyers contract

  1. The Contract and Vendor’s Statement are combined into ONE document, with the Vendor’s Statement, logically, coming FIRST. The Vendor’s Statement is formatted in such a way as to deal with the obligatory fields first and then group the optional fields in way that makes removal of those fields simple if they are not required.
  2. Particulars of Sale in the Contract includes a “sunset date” for off the plan approval. No more searching through mountains of Special Conditions.
  3. Non-derogation warranty. General Conditions can be amended by Special Conditions BUT not such as to reduce the rights created by the General Conditions. No more contracts that say one thing on page 1 and reverse that on page 15. This Contract is fair to both parties; if someone wants to create an unfair contract they cannot hide it within this contract.
  4. General Condition 12 – deposit release. Establishes a clear protocol for release by requiring timely objection to title.
  5. General Condition 14 – loan condition. Extends time for approval to 21 days and allows for automatic extension, subject to vendor’s ability to end the extension by notice.
  6. General Condition 25 – losses. Removes disputes relating to default losses from the settlement process and allows the parties to resolve these issues after settlement.
  7. General Conditions 27 & 28 – default and rescission notices. Divides the process into two steps with specified legal cost in respect of notices.

There are also other improvements, such as simple off the plan and electronic conveyancing conditions, a requirement that a vendor produce a copy lease at settlement and a clause passing ownership of abandoned goods to the purchaser. This Contract continues the quest commenced by the 2008 Contract (remember Requisitions?) to simplify conveyancing by ironing out the speedhumps.

Filed Under: Conveyancing and Property, Legal Alerts, Publication Updates, Victoria Tagged With: By Lawyers, By Lawyers contract, contract, contract for sale, contract of sale of land, Contract of sale of real estate, conveyancing, Conveyancing & Property, s32, section 32

QLD conveyancing – Priority notices

December 11, 2017 By By Lawyers

From 1 January 2018 priority notices will replace settlement notices.

Settlement notices will not be accepted at the titles Registry after 4.30 pm on 22 December 2017. If lodgement is anticipated after this date prepare a priority notice. Priority notices may be signed prior to 1 January 2018.

The publication has been updated to include precedents and commentary on priority notices.

Filed Under: Conveyancing and Property, Legal Alerts, Publication Updates, Queensland Tagged With: conveyancing, Conveyancing & Property, priority notice, settlement notice

Foreign resident capital gains withholding clearance certificates

December 11, 2017 By By Lawyers

Clearance certificates will not be issued during the ATO’s Christmas closure – 22/12/17 to 2/1/18.

Filed Under: Australian Capital Territory, Conveyancing and Property, Legal Alerts, New South Wales, Northern Territory, Queensland, South Australia, Tasmania, Victoria, Western Australia Tagged With: ATO, Australian Taxation Office, Capital gains tax, CGT, Clearance certificate, conveyancing, Conveyancing & Property, Foreign Resident Capital Gains Withholding Payment, FRCGWP

NSW – Land and Property Information (LPI) name change

November 20, 2017 By By Lawyers

From 1 December 2017 Land and Property Information (LPI) will be renamed Land Registry Services (LRS). Their logo, website domains and email address are changing. Full details available in this announcement from LPI.

Filed Under: Conveyancing and Property, Legal Alerts, New South Wales, Publication Updates Tagged With: conveyancing, Conveyancing & Property, Land and Property Information, LPI, LRS Land Registry Services, titles office

VIC – Vacant residential land tax

November 14, 2017 By By Lawyers

Vacant residential land tax applies from 1 January 2018 to homes in inner and middle Melbourne that are vacant for more than six months in the preceding calendar year. See the Vacant residential land tax commentary in our sale and purchase guides.

Filed Under: Conveyancing and Property, Legal Alerts, Publication Updates, Victoria Tagged With: conveyancing, Conveyancing & Property, land tax, tax, vacant residential land tax

  • 1
  • 2
  • 3
  • Next Page »

Subscribe to our mailing list

* indicates required
Preferred State

Connect with us

  • Email
  • LinkedIn
  • Twitter

© 2017 By Lawyers Holdings Pty Ltd | Contact |