Updated references to 2017 version of Regulations.
Add the Fair Trading calculator for Retirement Villages.
VOI and client authorisation have been added to the To Do Lists.
New precedents have been added to the property publications including:
Three new sublease precedents have been added to the Leases publication:
The precedents and commentary have been updated to reflect the new requirements regarding loose-fill asbestos insulation.
The Conveyancing (Sale of Land) Regulations 2017 will come into force 1 September 2017 affecting contracts for the sale of land.
The main changes are to the disclosure obligations requiring the following to be annexed to the contract:
Changes to contract warnings include:
Commentary, precedents and the By Lawyers Contract for Sale of Land have all been updated.
Precedents are current with the Lexon update for 1 July 2017.
A complete guide on the law and practice as it applies to Retirement Villages in New South Wales including 
a comprehensive treatment on obtaining accommodation and services within a retirement village, living there, and ending a residency including on sale, on termination, and on death.
This guide is available through the Conveyancing (NSW) publications as well as Leases (NSW).
– Precedents in the guide include:
– Retainer Instructions;
– To-do List;
– Checklist for prospective residents;
– Various letters of advice on commencing residency, completion and moving out;
– Various letters to the operator; and
– NCAT application forms.
The commentary includes information on the fundamental terms of the statutory regime, the standard contracts and mandatory documents, duties taxes and rates, taking occupation, living in a village and ending a residency including death and termination, payment of refund by the operator and dispute resolution.
Imposition of duty on transfer of land in Victoria is a significant source of revenue for the State government. It is also a significant source of angst for taxpayers and people involved in the real estate industry. Changes to the duty regime are often seen as levers for economic development and as such those changes are usually designed to achieve a politically beneficial outcome for the government.
The issue of housing affordability, particularly for first home buyers, is a hot button political issue and the duty changes are targeted at that demographic. The changes apply to contracts of sale after 1 July 2017, which may mean that the months of May and June will be ‘slow’ in this marketplace, followed by substantial uplift from July onwards.
Traditionally a first home buyer needs a minimum of the 10% deposit. Given that duty on a purchase of $500,000 is in the range of 5% the government impost is half of that hard fought for deposit. Granting an exemption or concession in relation to duty should therefore provide a substantial impetus for sales. The contrary argument is that it will simply bring more people into the market and effectively increase the price of housing by the amount of the benefit. This dispute between supply/demand will no doubt continue to occupy the attention of economists but we lawyers will move on to the practical consequences of the changes.
Full exemption for purchase price up to $600,000.
Reducing concession between $600,000 and $750,000 (no concession at $750,000).
Importantly in the new home market, the ‘dutiable amount’ is calculated after taking into account deductions relating to the cost of construction post-contract.
One segment of the new home market is based on the first home buyer purchasing the land and then entering into a separate building contract for construction. In this case the dutiable value is based on the land contract and will normally come within the full exemption available up to $600,000. However another method has the first home buyer enter into a land and building contract for the total value of the land and construction. This may have a contract price above the $600,000 threshold but the exemption is available if the value of the land as at the date of the contract is below $600,000. Adopting the Fixed Percentage Method of allocating value in such cases will mean that the full exemption will be available so long as an amount equal to 55% of the contract price is below $600.000, allowing for total contract prices of well over $1m.
This takes us into the realms of:
Substantial duty concessions have always been available in Victoria in relation to off the plan sales. The availability of this concession is to be limited after 1 July 2017 to properties to be used by the purchaser as their principal place of residence.
The concession is available where the dutiable value of the property is less than $550,000. Importantly, the calculation of dutiable value allows for deduction from the contract price of an amount that represents the value of construction to be undertaken after the date of the contract and prior to settlement. The Fixed Percentage Method of calculation of post-contract construction cost allocates cost as follows:
If a purchaser signs a contract before any construction commences the dutiable value will be below the $550,000 threshold provided that the contact price is less than:
and duty will be calculated at the concession rate available to purchasers who intend to occupy the property as their principal place of residence.
The concession that was previously available for investment properties and commercial developments will cease as at 30 June 2017 and the concession will only apply to owner-occupied properties.
LPI fees increase from 1 July 2017
Retail Leases
Major changes include abolition of the 5 year minimum term, the inability to claim outgoings not disclosed, and the introduction of penalties for failing to comply with key aspects of the legislation.
By Lawyers Contract for the sale of land
From 1 July 2017:
Land Tax
From 1 January 2018, vacant residential properties in the inner and middle ring of Melbourne will be subject to a vacant residential land tax of 1 per cent of the property’s capital improved value. A property will be considered vacant if it is unoccupied for six months or more in a calendar year. The six months does not need to be continuous. There are exemptions for many properties including for vacant land.
First Home Buyer Grant
The First Home Buyer Grant of $20,000 has been extended to 31 December 2017.
Land tax
An ‘absentee surcharge’ introduced from the 2017-2018 financial year. A 1.5% surcharge will be imposed on individuals not ordinarily residing in Australia and who are liable for land tax.