obiter | ByLawyers News and Updates

Land tax changes – SA

By

Land tax changes – threshold

Land tax changes apply from midnight 30 June 2020. There will be an increase in the general land tax threshold to $450,000 and a threshold of $25,000 will be introduced for trust ownership.

Current land tax rates and thresholds are available on the RevenueSA Rates and Thresholds page.

Land tax changes – joint owners

From the 2020-21 financial year, changes apply to how land tax is assessed for owners who own land in multiple ownership.

Pursuant to s 9(4) of the Land Tax Act 1936, joint owners of land will receive a land tax assessment for the jointly owned land where the value of that land is above the taxable threshold.

Pursuant to s 9(6), if an owner of jointly owned land also owns, or is deemed to own, other parcels of land in their own right, they may receive a separate assessment for their total landholdings which will include their share of the jointly owned land. The share of jointly owned land will also be combined with the site values of any land owned as an individual to calculate land tax payable.

A deduction will be applied to the individual assessment, which relates to the proportion of land tax assessed for the share in the joint ownership.

For further information, see the RevenueSA Owning land in multiple ownerships page.

The By Lawyers Conveyancing (SA) Publication has been updated accordingly.

Retail and commercial leases – SA

By

Important changes to the Retail and Commercial Leases Act 1995 and accompanying Regulations came into effect on 1 July 2020.

The By Lawyers Leases (SA) Publication – including the commentary and relevant precedents – has been updated accordingly.

The changes include:

  • A copy of the proposed retail shop lease is to be provided by a lessor to the prospective lessee as soon as negotiations are entered into. The particulars of the lessee, the rent and the term of lease are not required to be completed at this time. Failure to comply may result in a penalty of up to $8,000. The landlord or person acting on behalf of the landlord must also provide the prospective lessee with a copy of the Small Business Commissioner’s information brochure ‘Retail & Commercial Leasing Guide’. Failure to comply may result in a penalty of up to $800.
  • Before a retail shop lease is entered into, the lessor must give the lessee a signed disclosure statement. Failure to comply may result in a penalty of up to $8,000.
  • A lessee must, within 14 days of being served with the disclosure statement, return a signed acknowledgement of the disclosure statement to the lessor.
  • It is possible for a retail shop lease to move in and out of the scope of the Retail and Commercial Leases Act 1995. The Act does not apply to leases where the annual rent exceeds the threshold prescribed by the Act, currently $400,000 exclusive of GST. This applies irrespective of whether the Act applied to the lease at the time it was entered into or renewed.

These provisions are not applicable to retail and commercial leases that were entered into before the commencement of the Retail and Commercial Leases (Miscellaneous) Amendment Act 2019, being 1 July 2020, or in the exercise of any right or option conferred by a lease that was entered into before this date.

See the Leases (SA) Publication for further information.

Electronic conveyancing – ACT

By

Electronic conveyancing commenced in the ACT on 1 June 2020.

Legislation

The Land Titles (Electronic Conveyancing) Legislation Amendment Act 2020 and the Electronic Conveyancing National Law (ACT) Act 2020 came into effect on 1 June 2020. Together they introduced electronic conveyancing to the ACT.

Electronic conveyancing

The legislation does not mandate the use of electronic conveyancing. It remains a matter of choice for the parties to the transaction.

Electronic Conveyancing allows practitioners and financial institutions to interact and transact together online. Documents are created, signed and lodged within the online environment. All necessary steps to settle the transaction are completed within that online environment.

For assistance see the dedicated commentary ‘A brief explanation of the transition to E-conveyancing‘ which can be found in the Reference materials folder on the By Lawyers Conveyancing matter plans. This helpful resource contains information on how to get connected with PEXA or Sympli and covers verification of identity, client authorisation and certification and record keeping.

Verification of identity and client authorisation

Before entering into a transaction and executing a form to be lodged at the Land Titles Office – either electronically or in person – practitioners must be authorised by their client. This occurs by the client executing the Client Authorisation Form prior to completion.

Practitioners must take reasonable steps to verify that the client is a legal person and has the right to enter into the transaction. Documents used to verify a person’s identity must be retained for at least seven years from the date the Instrument is lodged with the Land Titles Office. Land Titles Office documents are being updated to include the new certification requirements.

The Land Titles Office will accept the existing forms lodged by legal practitioners and mortgagees up to 1 September 2020. If lodging dealings on a form without the certification requirements, practitioners must meet all the requirements of that form, including all signatures, witnessing requirements and producing the paper certificate of title, if required, as evidence of the right-to-deal.

By Lawyers updates

The By Lawyers Conveyancing (ACT) publication has been updated to include all necessary verification of identity and client authorisation forms. The relevant precedents have been updated to include electronic conveyancing options.

Lodgments via Sympli – NSW

By

Transfer and duty lodgments

The range of lodgments via Sympli that are available in NSW has expanded.

Sympli has now been approved by NSW Land Registry Services and Revenue NSW for transfer and duty lodgments.

The following documents can now be lodged through Sympli:

Stand alone transactions 

  • Caveat
  • Withdrawal of Caveat
  • Priority Notice
  • Priority Notice Extension
  • Priority Notice Withdrawal
  • Mortgage
  • Discharge of Mortgage
  • Notice of Death
  • Transmission Application to Executor

Financial settlement transactions

  • Transfer
  • Mortgage
  • Discharge of Mortgage

The By Lawyers Conveyancing and Property guides for NSW provide property law practitioners with practical commentary and useful precedents for all aspects of the conveyancing process.

Transfer and duty lodgments – SA

By

Transfer and duty lodgments with Sympli

Electronic settlements provider Sympli has expanded its service offering in South Australia. The Office of the Registrar-General, Land Services SA and Revenue SA approved Sympli for transfer and duty lodgments this week.

The following documents can now be lodged through Sympli:

Stand alone transactions 

  • Caveat
  • Withdrawal of Caveat
  • Mortgage
  • Discharge of Mortgage

Financial settlement transactions

  • Transfer
  • Mortgage
  • Discharge of Mortgage

By Lawyers South Australian Conveyancing guides provide practical commentary and helpful precedents for all aspects of the conveyancing process.

1001 Conveyancing Answers – VIC

By

The very popular By Lawyers reference manual 1001 Conveyancing Answers (VIC) has received an extensive review by our author Russell Cocks.

As part of Russell’s review, many relevant 2019 and 2020 cases have been added. These include:

1001 Conveyancing Answers (VIC) is available in all of our Victorian property law guides. This comprehensive reference work assists property lawyers and conveyancers to understand the conveyancing process and to solve problems for their clients as and when they arise. The publication includes detailed information to address issues quickly and clarify areas of uncertainty.

This cornerstone By Lawyers publication is a must have for all lawyers and conveyancers dealing with property matters and the conveyancing process in Victoria.

 

Strata title amendment – WA

By

Significant strata title amendment has been introduced in Western Australia.

The Strata Title Amendment Act 2018 and the Strata Titles (General) Regulations 2019 commenced on 1 May 2020.

The changes to the strata title regime include increased seller disclosure obligations and the introduction of leasehold strata.

Increased disclosure requirements

Before a buyer signs the offer and acceptance contract, the seller must provide information including:

  • Estimated strata levy contributions over a 12-month period.
  • The most recent statement of accounts of the strata scheme.
  • The minutes from the most recent Annual General Meeting of the strata company or any other general meeting that’s been held since.

Disclosure requirements are set out in s 156 of the Strata Title Act 1985.

A seller must also give the buyer information about certain variations to the scheme as they happen, after the buyer signs the contract and before settlement.

Leasehold strata

Leasehold strata title is essentially a strata or survey-strata scheme that is set up for a fixed term between 20 and 99 years.

The majority of the Strata Titles Act 1985 applies to leasehold schemes in the same way as it applies to freehold schemes.

The owner of a lot in a leasehold scheme has a long-term lease of a lot. A leasehold lot that is the subject of a strata lease within a leasehold scheme will have its own certificate of title, and a separate certificate of title is issued for the registered proprietor of the parcel of land over which the leasehold scheme is registered. The owner of a lot in a leasehold scheme can transfer the lot and the strata lease, and mortgage the lot without the lessor’s consent. Owners of the lots are members of the strata company and decide how to run the leasehold scheme.

Staged developments

Schemes no longer require a Management Statement to accompany and form part of the by-laws.

Details of staged development are now set out in the scheme by-laws and are called ‘staged subdivision by-laws’.

The amendments ensure the rights of lot owners who have already bought into earlier stages of the scheme are protected, while making the process more efficient for developers.

Updates

The By Lawyers Conveyancing – Sale and Purchase of land Guides have been updated accordingly.

A second stage of reforms introducing community title are expected to commence towards the end of this year.

Variation of lease – All states

By

Two new precedent deeds for variation of lease have been added to all By Lawyers Leases publications.

The new precedents are:

  • Deed of variation of lease – Deferral of rental payments. This deed provides for the deferral of rental payments for an agreed period. It also provides for the lessor to access the security deposit/bond/guarantee, to satisfy part-payment of rent during this period. It is suitable for general use when required.
  • Deed of variation of lease – Deferral of rental payments during COVID 19. This deed complies with the National Cabinet Code of Conduct that was released on 7 April 2020 to govern commercial, industrial and retail tenancies affected by the COVID-19 pandemic.

Both of these new precedents deeds cover arrangements for future payments. Once the deferral period has ended, they provide for the repayment of deferred rent in full.

By Lawyers have produced a publication which brings together in one place a collection of practical information to help the profession at this time. Dealing with COVID-19 legal issues is a valuable resource for lawyers. It is now available by clicking on the link at the top of the matter plan in every By Lawyers Guide.

Remote signing – All states

By

Practical issues relating to the remote signing of documents such as agreements, deeds, wills and powers of attorney by companies and individuals

Remote signing of documents has become an important issue for solicitors and their clients due to the coronavirus pandemic. Face to face meetings are now largely excluded meaning clients are unable to attend at their lawyer’s office to sign documents.

Documents which must be signed need to be mailed or emailed to clients and then signed remotely.

Signatures

Signatures establish the identity of the person signing and their intention to create legal relations.  It is this intention indicated by placing their mark on a document that gives it its legal character or functionality, not the mark itself. There is no real distinction made at law between handwritten signatures, marks or electronic signatures. Signing a document electronically might be done by typing one’s name, pasting an image of one’s usual signature, using a stylus or finger on a touchscreen or using e-signing software.

Agreements

An agreement can be in electronic form and executed electronically, if witnessing is not required.

Most contracts, such as the contract for the sale of land, do not require a witness.

If witnessing is required, it can be done electronically provided the witness is present when the deed is signed. If witnessing is not possible this way due to virus related isolation, then the counterparty will need to agree to another method.

Electronic conveyancing requirements

A Client Authorisation Form may be electronically signed, subject to specific jurisdictional requirements. Whilst the Verification of Identity Standard requires a face-to-face in person interview, compliance with the standard is not mandatory and taking ‘reasonable steps’ to verify the identity of the client, such as by video meeting, is sufficient.

The By Lawyers Contract for Sale of Land in NSW and in VIC allows for electronic exchange and electronic settlement in compliance with electronic transactions legislation and the Verification of Identity Standard rules.

Deeds

Deeds usually require signatures to be witnessed and to be in writing.

An electronically-signed deed that is immediately printed out on paper may satisfy the common law requirement for paper with the first printed version being the original deed rather than a copy. However, parties to a transaction are better served to agree in advance to the acceptability of a particular form of deed and its electronic signature. Similarly, checking before execution  the requirements of organisations such as registries with whom the deeds must be registered will ensure their acceptability.

As mentioned above, witnessing can be electronic provided the witness is present when the deed is signed. If this is not possible then the counterparty will need to agree to another method.

An acceptable method might be by video attendance of the party’s lawyer who on return of the signed deed certifies it to be identical to the one submitted for signing and that the signing was witnessed by video.

Wills

The issue with executing wills remotely given social distancing, is the availability of two witnesses who are not themselves beneficiaries.

Where the required two disinterested witnesses are not available, the will may be executed informally, by the testator, who after signing it, returns it to their solicitor with a statement that they intend it to be their last will and testament. Accompanied by an affidavit explaining the signing in the prevailing circumstances, perhaps with video witnessing, a grant of probate of the informal will is likely to be made if required. Once the pandemic ends the will can be properly signed.

Powers of attorney

A general power of attorney does not need a witness and can be signed remotely.

However, an enduring power of attorney must be witnessed by a prescribed witness – usually the principal’s solicitor – who must also certify that they explained the effect of the document to the principal and that they appeared to understand it. On that basis remote signing is technically impossible.

Where a face to face meeting – even one at an outdoor location with appropriate distancing – is not possible, the document could be sent to the client by post or email for their written or electronic signature. Their lawyer could hold a video conference with the client and explain the document and see it signed by their client. When returned the lawyer can certify that they gave the explanation and were satisfied as to the principal’s understanding, but whilst unable to personally witness the document being signed, they witnessed the signing in video conference.

In this practical way the power is likely to be acceptable in most cases where there is no issue raised.

Where this approach is taken, the risks that the document may not be effective need to be explained to the client and appropriate file notes made.

Appointments of enduring guardian and Advance medical directives

The same witnessing and certification procedures apply to these instruments as for enduring powers of attorney. Similar practical, emergency measures might be undertaken.

Company execution

It is arguable whether a company can execute a document electronically under s 127 of the Corporations Act 2001.

However, in this busy world of commerce it is common for documents to be signed by duly authorised officers, or one director, or by a duly appointed attorney.

Generally

The ongoing response to Coronavirus means that emergency measures are rapidly being introduced to modify the usual signing and witnessing requirements. For example, some courts will currently accept unsigned affidavits on the basis that they will later be formally executed if necessary. The website of each court should be referred to as required.

 

Keep up-to-date with our latest COVID-19 News & Updates

FIDS – Conveyancing -TAS

By

Foreign Investor Duty Surcharge (FIDS) is increasing from 1 April 2020.

FIDS applies to acquisitions of residential or primary production property by a foreign person occurring on or after 1 July 2018. It is an additional amount of duty charged on the direct, or indirect, acquisition of residential or primary production property by any foreign person.

The increase applies from 1 April 2020. For transactions which are the result of a written agreement for sale entered into after 1 April 2020, FIDS is charged at:

  • 8% on the proportion of the dutiable value of residential property acquired by a foreign person; and
  • 1.5% on the proportion of the dutiable value of primary production property acquired by a foreign person.

The By Lawyers Purchase of Real Property (TAS) Guide has been updated in line with these changes.

Connect with us