ByLawyers News and Updates

Off the plan – sunset clauses – VIC

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Vendors face new restrictions when seeking to activate sunset clauses to end off the plan contracts in Victoria.

Amendments for off the plan contracts

The Sale of Land Amendment Act 2019 commenced on 4 June 2019. It amends the Sale of Land Act 1962. The amendments require vendors wishing to end residential off the plan contracts pursuant to a sunset clause to either obtain the purchaser’s consent, or an order from the Supreme Court.

New notice requirements created by section 13 of the amending Act for off-the-plan contracts for residential land including a sunset clause, have yet to commence.

The changes do not affect the existing statutory rights of purchasers to end a contract if the plan of subdivision is not approved by the sunset date.

Rescission

Section 10A of the Sale of Land Act 1962 provides that if a sunset clause in a contract allows the vendor to rescind the contract, then rescission must be in accordance with the Act. Section 10C overcomes any inconsistent contractual provision.

Purchaser’s consent

Section 10B of the Sale of Land Act prohibits a vendor from relying on a sunset clause unless the vendor obtains the purchaser’s written consent to any such rescission.

A vendor seeking to obtain the purchaser’s consent must give the purchaser 28 days notice setting out the reason that the vendor proposes to rescind, the reason for the delay in registration of the plan and that the purchaser is not obliged to consent to the proposed rescission.

A precedent ‘Notice of rescission of off the plan contract’ in accordance with s 10B(3) can be found on the By Lawyers matter plan.

Court order

Section 10D of the Sale of Land Act provides that the vendor may apply to the Supreme Court for an order permitting the vendor to rescind a contract pursuant to a sunset clause. The Court must consider a wide variety of matters relating to the contract and the property, including increase in value. If an order is made it may include compensation to the purchaser and the vendor will be liable for the purchaser’s costs.

Notice

Section 10F, created by section 13 of the Amendment Act, has yet to commence. This new section will require residential off-the-plan contracts that include a sunset clause to include a notice informing the purchaser that:

  • the vendor may give a notice proposing to rescind the contract;
  • the purchaser may consent to rescission, but is not obliged to consent;
  • the vendor may apply to the court for an order permitting rescission;
  • the court may make such an order.

A precedent notice in compliance with s 10F will be included in General Condition 9 of the By Lawyers contract on commencement of s 10F.

By Lawyers contract

The general conditions and particulars of sale in the By Lawyers Contract satisfy all of the statutory requirements when selling prior to registration, relying on the default sunset period of 18 months.

Privacy Act notifications – FED

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Two helpful new precedents have been added to the By Lawyers Practice Management guide to assist law firms required to make Privacy Act notifications to the Office of the Australian Information Commissioner.

The Office of the Australian Information Commissioner has indicated that it considers law firms are subject to the mandatory disclosure provisions.

Privacy Act notifications are required where data breaches are likely to result in ‘serious harm’ to clients. These must be promptly reported to the OAIC and to the affected clients.

Notification is mandatory if the firm is aware of reasonable grounds to believe an eligible data breach has occurred. Firms becoming aware of a breach must make a rapid assessment, remediate if possible, then notify if required, without delay.

There is no specified form of notification to the affected individuals. A precedent is now provided on the matter plan – see Letter to client re Privacy Act data breach notification.

Notification to the Office of the Australian Information Commissioner should be done via the online Notifiable Data Breach form on the OAIC’s website, also linked to from the matter plan. However, sometimes the very data breach which requires the notification to be made can also make reporting online impossible. To assist in such circumstances, a precedent letter is now provided on the matter plan where the online form cannot be accessed – see Letter to OAIC re Privacy Act data breach notification.

Traffic offence penalties – NSW

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Traffic offence penalties in NSW have changed. The By Lawyers Traffic Offences – Local Court NSW Guide has been updated in relation to recent penalty increases for various drug and alcohol offences. This applies to the commentary for alcohol and drug offences, the appendix of penalties and the retainer instructions.

The appendix to the Traffic Offences NSW commentary ‘Traffic offences and penalties – Drugs and alcohol‘ is a very handy resource that provides a summary of current key information relevant to sentencing for specific common offences, with links to applicable sections of the Act and any relevant programs.

The ‘Retainer Instructions – Traffic offences‘ precedent, also found in the Traffic Offences Guide, contains an ‘Offences and Penalties’ table which sets out the current fine, any applicable custodial penalties and the disqualification periods for most common alcohol, speeding and vehicle use offences. These useful details are readily available when needed – at the point of taking instructions from the client, who will want to know the applicable traffic offence penalties immediately.

All By Lawyers Guides contain practical and up to date commentary and precedents designed to help practitioners work faster and smarter. A team of over 45 legal professionals keep our content updated to reflect legislative changes, so our users can be confident that they’re working with the latest forms, precedents and commentary.

Subpoenas – Legitimate forensic purpose – VIC

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Subpoenas and the considerations for setting them aside were considered recently in Walters v Perton [2019] VSC 356.

The court in its probate jurisdiction, was considering an application to set aside two subpoenas under r 42.04 Supreme Court (General Civil Procedure) Rules 2015, which provides that a court may set aside all or part of a subpoena which is an abuse of process. The applicant submitted that there was no legitimate forensic purpose for the subpoenas.

At [30] the court succinctly stated the principles which govern an application to set aside subpoenas in civil cases, with reference to the leading authorities on legitimate forensic purpose. This is a useful statement of the principles and summary of the cases. At [30] the court noted:

(a) the subpoena process under Order 42 should not be used as a substitute for discovery or non-party discovery;

(b) it is necessary for the party at whose request the subpoena was issued to identify expressly and precisely the legitimate forensic purpose for which access to the documents is sought;

(c) except in cases where the subpoena is plainly too broad and merits the description of a fishing expedition, the judge should normally inspect the documents for the purpose of making a final decision as to whether a legitimate forensic purpose exists;

(d) however, the Court will not require production of subpoenaed documents, and will not permit access to subpoenaed documents, if the subpoena is expressed so broadly that the applicant cannot demonstrate, having identified a forensic purpose, that it is ‘on the cards’ or that there is a ‘reasonable possibility’ that the documents will materially assist the case of the party.

(e) the subpoena must sufficiently describe the documents to be produced so as to not require the recipient to make a judgment about the documents being sought and must not be oppressive or fishing (a ‘fishing expedition’ is not a legitimate forensic purpose and will not be permitted);

(f) The relevance of a document to the proceeding alone will not substantiate an assertion of legitimate forensic purpose. There is no legitimate forensic purpose if the party is seeking to obtain documents to see whether they may be of relevance or of assistance in his or her case. The test of relevance, however, may be a general one, particularly where the Court has only a general idea of the nature of the evidence which may be led as relevant to an issue or as to credit of an expected witness;

(g) A mere assertion of bad faith by an applicant or that something might be found demonstrating bad faith is not enough – the criteria set out in paragraph (c) must be satisfied; and

(h) Where a party fails to demonstrate a legitimate forensic purpose, the Court should refuse access to the documents and set aside the subpoena.

The court also commented on legitimate forensic purpose in probate proceedings specifically. The court noted that legitimate forensic purpose in probate proceedings may be informed by the court’s inquisitorial role which requires a greater supervision and control of proceedings than adversarial common law proceedings.

This case has been added to the By Lawyers Reference Guide 101 Subpoena Answers.

Family Provision – Widows claims – NSW

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New commentary, including an entry specific to Widows claims, has been added to the Family Provision section of the By Lawyers Reference Guide 101 Succession Answers.

Case note

These enhancements reflect the recent Court of Appeal decision in Steinmetz v Shannon 2019 NSWCA 114. In that case, the Court of Appeal overturned the decision of a single judge where the court had refused to make further provision for the widow of a testator. The deceased left the bulk of his $6,650,000 estate to the adult children of his first marriage. The will gave the widow only an annuity of $52,000. The couple had been together for 28 years.

The Court of Appeal found that leaving a 65-year-old widow, who is capable of managing her own affairs, reliant for the rest of her life on quarterly payments by the children of her deceased husband’s first marriage, with one of whom there had been historical tensions, rather than placing her in control of her own resources, was not an appropriate form of provision. Instead, the Court of Appeal ordered that the widow receive a legacy of $1,750,000, in addition to the annuity.

The judgment includes a detailed analysis of the leading cases on widows claims. Additionally, it considers how the court should balance the competing imperatives of the deceased’s testamentary freedom and the legislative requirements for provision to be made for eligible persons. In considering the applicant’s need for maintenance, education and advancement, the Court of Appeal also acknowledged the relevance of the non-financial needs of the applicant, such as her desire to relocate to a bigger town for better access to medical care.

Publication update

The new section in 101 Succession Answers discusses this Court of Appeal decision and widows claims generally. There have also been related and incidental enhancements made to other sections of the publication. The interactive alphabetical contents list has been updated accordingly to maintain the easy access to content which is the hallmark of all By Lawyers reference guides.

Reference materials

101 Succession Answers covers Powers of Attorney, Appointments of Enduring Guardian, Wills, Estates and Family Provision. This valuable By Lawyers reference guide is located in the Reference Materials folder on the matter plan in each of those publications.

National Mortgage Form – All states

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New content added

New content on the National Mortgage Form has been added to the Mortgages Guides in each state.

The National Mortgage Form is an Australia-wide initiative. It standardises the content and presentation of mortgages lodged for registration via all lodgement channels with land registries in the various participating Australian states and territories.

Mortgagees and property practitioners across all participating jurisdictions must adopt the National Mortgage Form. The previous previous mortgage forms used in each Land Registry will no longer be accepted.

The National Mortgage Form allows for incorporation of any registered common provisions, or other registered dealings.

For further information, user guide and link to the current webform version of the National Mortgage Form, see the ARNECC website.

Compatibility with PEXA and Sympli

The Mortgage is created and registered within PEXA. For further information, see the PEXA Community user guides ‘How to create and register a mortgage in PEXA’ and ‘How to create and register a second mortgage in PEXA’. These are available on all By Lawyers Mortgages matter plans.

It is expected that the new Electronic Lodgement network Operator, Sympli, will have corresponding capability when it commences later this year. Details on Sympli will be added to by Lawyers guides as soon as Sympli becomes operational.

Transition to E-conveyancing – All states

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The By Lawyers commentary ‘A brief explanation to the transition to E-conveyancing‘ has been updated.

This very practical and topical commentary is available in all By Lawyers Conveyancing & Property Guides, including Sale, Purchase, Mortgages and Leases.  It helps all practitioners to get up to speed on the ever-accelerating transition to E-conveyancing.

The recent updates cover:

Important new industry mandated time frames

NSW – From 1 July 2019, mainstream property dealings including transfers, mortgages and discharges of mortgage, caveats, withdrawals of caveat and transmission applications must be lodged electronically.

VIC – Land Use Victoria has mandated that complex land transfer transactions must be lodged and managed online from 1 August 2019, bringing almost all transactions online. Duties Online enhancements are scheduled to take effect from 17 June 2019.

Details of the new Electronic Lodgement Network Operator, Sympli

The second ELNO, Sympli is coming soon to join PEXA in the e-settlement space. Sympli promises an intuitive and user-friendly platform.

Information regarding the new settlement agent network, SettleIT.

SettleIT, an InfoTrack initiative, is a shared network of specialist settlement agents that handle e-settlement processing on behalf of property practitioners. With one click, a SettleIT agent
can be booked to provide a personalised, fixed-price service to take a conveyancing matter through to settlement.

Keep up to date with By Lawyers

By Lawyers Conveyancing guides provide all the information required to conduct conveyancing, including electronic property transactions, confidently and efficiently.

New criminal precedents- All states

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By Lawyers have added over 50 new criminal precedents to the matter plans in our Criminal guides for all jurisdictions. These practical and helpful new precedents will save practitioners time and make matter management easier.

The new criminal precedents cover many of the tasks required when acting for a defendant in criminal proceedings, from arrest, attendance at the police station and bail, to court attendance, sentencing and appeals.

As part of this significant enhancement to our Criminal guides, we have introduced a new type of precedent which is particularly useful for criminal practitioners – Attendance notes.  Attendance note precedents are pre-drafted, detailed file notes which both record work usually performed on a matter and act as a reminder of the necessary components of various common tasks.

An extensive selection of new precedent letters have also been added to the appropriate folders in the Criminal matter plans. These letters are designed to assist practitioners:

  • arrange bail for their clients;
  • seek disclosure from the prosecution;
  • gather evidence from the client and their witnesses;
  • arrange for witnesses to attend court;
  • advise clients on their plea; and
  • inform clients of sentencing outcomes.

By Lawyers are always working to improve and expand our content. These new precedents increase the value of our criminal guides for practitioners who advise and represent clients in criminal matters in all states of Australia.

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Water access rights – SA

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New commentary on water access rights has been added to the By Lawyers Sale and Purchase Guides (SA).

The new content covers the right to take and use water in South Australia which is regulated under the Natural Resources Management Act 2004. Under the Act, rights in relation to the ability to take and use water include water licences, water access entitlements and stock and domestic rights.

Information in relation to water licences and water access can be found on the Department for Environment and Water website.

Ownership of water rights is recorded on the Water Register.

By Lawyers do not currently offer a full commentary on the increasingly complex and valuable rights attaching to the usage, allocation and trading of water, but the new content in the Sale and Purchase Guides assists as a starting point for SA practitioners who are called upon to advise clients in relation to the rights attaching to water in various circumstances, whether in the context of property transactions, property development, or stand-alone water trading transactions.

Helpful interactive links are also provided in the new content to allow users to quickly access the detailed information available on the Department for Environment and Water website and the WaterConnect website.

Water usage rights – VIC

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New commentary on water usage rights has been added to the By Lawyers Sale and Purchase Guides (VIC).

The new content covers the right to use water and the right to participate in water share schemes in Victoria, which is governed by the Water Act 1989.

Information in relation to water use licences and water shares can be found on the DELPW Water and Catchments page. Ownership of water shares is recorded on the Water Share Register.

Note that the Registrar of Titles is also the Registrar of Water Shares.

By Lawyers do not currently offer a full commentary on the increasingly complex and valuable rights attaching to the usage, allocation and trading of water, but the new content in the Sale and Purchase Guides assists as a starting point for VIC practitioners who are called upon to advise clients in relation to the rights attaching to water in various circumstances, whether in the context of property transactions, property development, or stand-alone water trading transactions.

Helpful interactive links are also provided in the new content to allow users to quickly access the detailed information available on the Department of Environment, Land, Water and Planning website.

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