ByLawyers News and Updates

Recent property cases – VIC

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Recent property cases have been added to By Lawyers reference manual 1001 Conveyancing Answers (VIC).

The publication has been extensively reviewed and updated by our author Russell Cocks.

Useful recent property cases added to the publication in the course of this review include:

1001 Conveyancing Answers (VIC) is available in all By Lawyers Victorian property law guides – Purchase, Sale, Leases, and Mortgages.

This comprehensive publication assists property practitioners to understand deeper issues in conveyancing and solve problems for clients when they arise.

REIQ contracts – QLD

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In line with recent REIQ contracts amendments and regulatory requirements, new commentary and precedents have been added to the By Lawyers Conveyancing (QLD) publication.

The new content in both Sale and Purchase guides relates to:

Unilateral right to extend the settlement date

From 20 January 2022 the new REIQ Houses and Land Contract 17th edition and Residential Community Title Contract 13th edition  provide in a new clause 6.2 the ability for either buyer or seller to extend the settlement date for up to five business days if they are unable to settle.

The new clause allows a party to extend settlement by giving an extension notice to the other party, without any requirement to produce supporting evidence detailing the reasons for the extension. The notice must be given in writing prior to 4pm on the scheduled settlement date, must nominate a new settlement date and state that time is of the essence.

More than one extension notice may be given but the settlement date nominated in a notice cannot be later than 5 business days after the scheduled settlement date.

A new precedent Extension Notice can be found on both the Sale and Purchase matter plans within folder F.

Smoke alarms

From 1 January 2022, dwellings or residential units offered for sale must have smoke alarms installed in accordance with the Fire and Emergency Services Act 1990 and Building Fire Safety Regulation 2008. Clause 7.8 of the new editions of the REIQ contracts imposes an obligation on the seller to install compliant smoke alarms in any dwelling on the land or lot, prior to settlement. If not met, the buyer is entitled to an adjustment on settlement of 0.15% of the purchase price.

Pool compliance certificates

Clause 5.3(1)(e) of the new editions of the REIQ contracts require a seller to provide a pool compliance certificate for a non-shared pool on the land at settlement. The only exception to this obligation is if a Notice of No pool Safety Certificate is given to the buyer prior to contract.

Failure to provide a pool compliance certificate under clause 5.3(1)(e) will mean the seller is not ready, willing, and able to settle and the buyer may terminate the contract.

Updates

Apart from new commentary and precedents in the Purchase and Sale guides, the detailed 1001 Conveyancing Answers (QLD) publication has also been updated accordingly. This is available in the reference materials folder at the top of all By Lawyers QLD conveyancing and property matter plans.

1 January updates – All states

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1 January updates are always a big focus for By Lawyers. While the profession takes a well-earned break By Lawyers remains hard at work ensuring our publications are updated for legislative and regulatory changes that take effect from the new year.

Updates

This year’s 1 January updates for relevant jurisdictions include:

Land tax

In New South Wales and Victoria, land tax is calculated for the calendar year. Threshold values increase annually.

In New South Wales, the 2022 threshold combined land value has increased to $822,000 for all liable land. Special trusts and non-concessional companies are excepted. A marginal tax rate of 1.6% of the aggregate taxable value above the tax-free threshold, plus $100 applies from 1 January. If the aggregate taxable value exceeds the premium rate threshold of $5,026,000 then $61,876 is payable, plus a marginal tax rate of 2% over that amount.

In Victoria, the tax-free threshold for general land tax has increased to $300,000. The trust surcharge threshold remains at $25,000.

All relevant commentary and precedents in the By Lawyers Conveyancing and Property and Trusts guides for each relevant state will be updated for these new threshold amounts from 1 January.

By Lawyers Contract of sale of land

The 2022 edition of the By Lawyers contract will be available 1 January in the Sale of real property publications for Victoria and New South Wales. The contract is located in the Contract folder on the matter plan.

Leases and subleases

In New South Wales, Victoria, Queensland, South Australia and Western Australia the 2022 editions of lease and sub-lease precedents will be available from 1 January. these are found in the Leases – Act for Lessor section of each Leases publication.

Keeping up to date

In addition to our 1 January updates, By Lawyers updates our publications for 1 June and other regulated adjustments where necessary.

Of course we always update our content for relevant legislative amendments and other legal developments throughout the year, in all jurisdictions, as required.

Keeping up to date is one of the ways By Lawyers help our subscribers enjoy practice – and holidays – more!

The team at By Lawyers wishes everyone a prosperous and safe 2022.

COVID measures are here to stay – All states

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Many temporary COVID measures introduced across Australia during the pandemic are here to stay.

New South Wales and Queensland have now proposed legislation permanently retaining some COVID measures, such as remote witnessing. Victoria have already legislated to retain some COVID measures. The Commonwealth has extended temporary measures for companies.

With other states and territories expected to follow suit, the long-term legal legacy of COVID-19 looks like being significant.

New South Wales

The Electronic Transactions Amendment (Remote Witnessing) Bill 2021 will permanently allow certain documents to be witnessed in real time over an audio-visual link.

Further, for an additional 12 months from the date of assent, the list of people who can witness NSW statutory declarations will be extended to the expanded list of witnesses set out in Schedule 2 of the Statutory Declarations Regulations 2018.

Queensland

The Justice and Other Legislation Amendment Bill 2021 will make permanent some of Queensland’s  temporary COVID measures including:

  • Remote witnessing and electronic signing of affidavits, statutory declarations and some oaths; however electronic signatures on statutory declarations can only be used for a land or water dealing where electronic conveyancing is used.
  • Powers of attorney for corporations, partnerships and unincorporated associations, but not sole traders, can be signed electronically, in counterpart, by split execution and without a witness; however, if a general power of attorney is used for a land or water dealing it must continue to be executed in accordance with the Land Title Act 1994 and Land Act 1994.
  • Advance health directives can be certified as to capacity by nurses, in addition to doctors.
  • Deeds can be made in the form of an electronic document, electronically signed, made in counterpart and by split execution, generally without a witness. The Bill also removes the requirement for deeds to be sealed, requiring the deed to contain a clear statement that it is executed as a deed. However, deeds lodged or deposited in relation to land and water dealings must continue to be executed in accordance with the Land Title Act 1994 and Land Act 1994.
  • Private applications for temporary protection orders in domestic and family violence matters may be filed electronically, with a hearing date allocated and the application served before the application is verified. Verification can occur later, when the magistrate hears the application. The Magistrates Court may hear any part of family and domestic violence proceedings by audio visual link.

South Australia

The Oaths (Miscellaneous) Amendment Act 2021 commencing on 1 December 2021 amends the Oaths Act 1936 (SA) to:

  • Provide continuity following the expiration of the COVID-19 Emergency Response Act 2020 and its associated regulations through the Oaths Regulations 2021.
  • Introduce a Code of Practice – Affidavits to be followed by deponents and witnesses in the making of affidavits.
  • Introduce a Code of Practice – Statutory Declarations to be followed by declarants, and witnesses to ensure statutory declarations are taken in accordance with the Oaths Act 1936.
  • Expand the persons before whom a statutory declaration may be made as stated in the new Schedule 1 to the Oaths Act 1936.
  • Include additional offences for those falsely representing themselves as authorised witnesses to a statutory declaration or affidavit.

By Lawyers keeps you up to date

All relevant By Lawyers guides, including the dedicated guide Dealing with COVID-19 legal issues – Some practical information which appears at the top of all By Lawyers matter plans, have been or will be updated to reflect these changes as and when they take effect.

Leases – QLD

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By Lawyers Leases – QLD publication has been reviewed and updated to ensure that the commentary and precedents are in line with current law and practice.

Queensland property lawyers and conveyancers will find helpful enhancements resulting from this review, including:

Expanded commentary on: –

  • Agreements/offers to lease.
  • The application of the Retail Shop Leases Act 1994.
  • Personal property securities considerations when acting for a lessor or lessee.
  • Disclosure statements – for new leases, assignments and renewals.
  • Outgoings.
  • Rent review procedures.
  • Options to renew and the form of renewal.
  • Security for performance.

New commentary on –

  • The applicability of the Competition and Consumer Act 2010 (Cth).
  • A lessor’s disclosure obligations in relation to the leasing of land listed on the Contaminated Land Register.
  • The importance of correctly defining the premises to be leased.
  • Obtaining mortgagee consent to a lease.

New precedents including –

  • Lessee waiver notices pursuant to s 22B of the Retail Shop Leases Act 1994 – New lease and assignment.
  • Heads of agreement for offer to lease – Concise.

These enhancements to the Leases – QLD guide will assist lawyers acting for either a lessor or lessee.

This review is part of By Lawyers continuous commitment to reviewing and enhancing our publications to ensure our subscribers.

Title reform – Conveyancing – NSW

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Title reform – involving the cancellation of certificates of title and other changes to the NSW land titles system – commenced on 11 October 2021. Certificates of title are abolished and the Torrens Register is the single source of truth as to a person’s interest or estate in land. All documents to be registered on the Torrens Register must be lodged by a subscriber, who must verify the identity of the client and establish that they have the right to deal with the land.

These significant changes were introduced in part by the Real Property Amendment (Certificates of Title) Act 2021. The Act provides for the cancellation of certificates of title (CTs) and progression towards 100% electronic lodgment of land transactions.

Title reform  – Cancellation of certificates of title

From 11 October 2021:

  • All certificates of title have been cancelled and will no longer be issued.
  • Existing CTs cannot be required to be produced to have a dealing or plan lodged for registration.
  • Practitioners no longer need to obtain a copy of the CT from their client for a property dealing.
  • Banks are no longer issued with ‘control of the right to deal’ (CoRD) and all recordings relating to CoRD holders have been removed from the Register.
  • Banks can no longer be asked to provide CoRD holder consent in a workspace when a mortgagor wants to lodge a dealing for registration, including a subsequent mortgage.
  • Mortgagee consent still needs to be obtained for the registration of certain dealings.
  • Subscribers are no longer requested to enter the CAC (Certificate Authentication Code) details taken from a CT for consent purposes in the workspace. The concept of the CAC is redundant and is no longer required to be kept securely.
  • Where a subscriber has relied on a CT to establish a right to deal in a transaction conducted before 11 October 2021, the CT or a copy of it must be retained, in line with the requirements for retaining supporting evidence in the NSW Participation Rules.
  • Otherwise, firms holding CTs in safe custody after commencement of this title reform have the following options:
    • seek instructions from each client on what to do with their CT;
    • return all CTs to clients;
    • take a ‘do nothing’ approach.

It is not necessary for firms to stamp a CT as cancelled or mark it in any way if returning it to their client.

Information Notice

From 11 October 2021, in all instances of property ownership, an Information Notice will issue. Details on this notice will include the folio identifier, the dealings registered including registration numbers, the subscriber’s reference and the date of registration. As an Information Notice is not a definitive statement of the state of the Register, a title search will be necessary to acquire accurate title information.

All land dealings must be lodged electronically

From 11 October 2021:

  • Lodging land dealings in paper is no longer permitted. All land dealings are to be lodged with NSW Land Registry Services electronically by a subscriber to an Electronic Lodgment Network such as Sympli or PEXA.
  • The Lodgment Rules specify when out-of-scope electronic dealings can depart from the usual manner of preparing an electronic dealing.
  • Paper dealing prepared before 11 October 2021 can still be lodged with NSW Land Registry Services electronically. They are uploaded as a PDF attachment to the electronic dealing known as ‘Dealing with Exception’. Once lodged, NSW Land Registry Services will examine the paper dealing.

All By Lawyers NSW Conveyancing & Property publications have been updated to reflect these changes.

Purchasing off the plan – All states

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To assist practitioners advising clients who are purchasing off the plan, new precedents have been added to the By Lawyers Purchase of Real Property guides in all states.

The two new precedents for practitioners advising potential purchasers are:

  • Initial letter to proposed off the plan purchaser; and
  • Enclosure – Considerations when purchasing off the plan.

The Enclosure is designed to be provided to clients who are considering buying off the plan. It provides plain language information about:

  • What ‘off the plan’ means.
  • The risks of purchasing off the plan.
  • The advantages of purchasing off the plan.

All the pertinent considerations for a client looking at entering into a contract to buy a property off the plan are covered. Importantly, the potential risks are clearly explained, including:

  • Being locked in until the sunset date.
  • Potential for loss if the market deteriorates between the day of sale and the settlement date.
  • Special conditions that operate in the developer’s favour.
  • Possible dissatisfaction with finished product.
  • Changes to the building.
  • Additional legal costs being involved.

Both new precedents can be found in folder A. Getting the matter underway, on each Purchase of Real Property matter plan.

These helpful new precedents were created in response to a request from a By Lawyers subscriber.

Purchasing off the plan – VIC

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To assist practitioners advising clients who are purchasing off the plan, a new precedent has been added to the By Lawyers Purchase of Real Property (Vic) guide.

The Enclosure – Considerations when purchasing off the plan provides a potential purchaser with plain language information about:

  • What ‘off the plan’ means.
  • The risks of purchasing off the plan.
  • The advantages of purchasing off the plan.

The enclosure covers all the pertinent considerations for a purchaser before entering into a contract to purchase an off the plan property. The potential risks are clearly stated, including:

  • Being locked in until the sunset date.
  • Potential for loss if the market deteriorates between the day of sale and the settlement date.
  • Special conditions that operate in the vendor’s favour.
  • Possible dissatisfaction with finished product.
  • Changes to the building.
  • Changes to the owners corporation.
  • Additional legal costs being involved.

A related new precedent ‘Initial letter to proposed off the plan purchaser’ has also been added.

Both new precedents can be found in folder A. Getting the matter underway on the Purchase of Real Property (Vic) matter plan.

This helpful new precedent has been created by our Victorian property author Russell Cocks. It was developed in response to a request from a By Lawyers subscriber.

Family law property dealings – FED

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For the assistance of practitioners conducting family law property dealings, a new folder has been added to the By Lawyers Family Law publication. Commentary and precedents are available to assist family law practitioners at the point of a matter where real property needs to be transferred between the parties.

The new folder is called If required – Real property dealings. The commentary and precedents within the new folder are extracted from the By Lawyers Conveyancing and Property publications. They provide guidance and the necessary forms and precedents to verify the client’s identity to the relevant standard for electronic lodgments of transfers and dealings with real property.

The new folder contains the following precedents and commentary required for the electronic settlements process:

This useful content has been added to the Property Settlement guide and the Financial Agreements guide. The new folder can be found in Finalising the matter on both matter plans. The location of this new content reflects the fact that family law property dealings are typically effected upon finalisation of the matter.

Family law practitioners are reminded that the commentary in both the Family Law Property settlement and Financial agreements guides cover the considerations and procedure for transfers of real property in family law matters. The By Lawyers 101 Family Law Answers reference guide also provides helpful information which includes valuing real property in the family law context, stamp duty implications of real property transfers in family law, together with coverage of capital gains tax and foreign resident withholding payments.

This enhancement arises from feedback from a By Lawyers subscriber. We value such feedback and always love to hear our users. Don’t hesitate to get in contact: askus@bylawyers.com.au

Community titles – WA

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A statutory regime creating community titles has been introduced in WA.

The Community Titles Act 2018 commenced in full on 30 June 2021.

The principal object of the Act is to facilitate the subdivision of land into parcels for separate development or disposition, with an interest in associated land in the nature of common property. The separate parcels can then be further subdivided.

The Act permits a single parcel of freehold land to be subdivided in a way that creates up to 3 tiers of schemes in one community scheme. Each scheme has its own community corporation. A community corporation is similar in function to a strata owners corporation. It is established on registration of the scheme. Each scheme also has its own set of by-laws to govern it and the common property.

The Act enables the creation of community titles (land) schemes and community titles (building) schemes within a community scheme.

Community title usually applies to large estates. These can sometimes include more than one residential lot as well as commercial and retail lots. The management of community title schemes can be complex. They can often span large areas of land with mixed – potentially  conflicting – uses. One issue that should be borne in mind by practitioners acting for purchasers of residential units in a property subject to a community title scheme is that there can be by-laws for both the strata scheme and the community titles scheme which apply to the lot the client is purchasing.

Much like strata titles, community title schemes are managed by committees and meetings. The community scheme committee deals with day-to-day issues and general meetings are held for more substantial issues.

These amendments bring WA property law into line with most other Australian states.

The commentary in the By Lawyers Conveyancing (WA) publication has been updated. It now includes details of how community schemes are created and operated, with specific commentary on:

  • Community development statements;
  • Scheme documents and registration;
  • Functions of a community corporation; and
  • Buyer information requirements.

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