ByLawyers News and Updates

NSW – Conveyancing – Sale – Replies to requisitions

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Responding to a recent subscriber request, we have added new standard replies for the following Law Society requisitions:

  • Residential Property 2018;
  • Strata Title (Residential) Property 2018;
  • Commercial 2018; and
  • Strata Title (Commercial) Property 2018.

These replies are in our Conveyancing – Sale (NSW) guide and form part of By Lawyers extensive library of replies to requisitions, which comprises replies to all common forms of requisitions including those produced by the Law Society of NSW and Australian Law Stationers.

Note: when using the By Lawyers Contract for Sale of Land requisitions are not required – by operation of clause 11 of the By Lawyers Contract, the warranties given by the vendor in the contract replace requisitions.

The main function of requisitions in modern conveyancing is to remind the vendor of the implied obligation to deliver a good title. But in the vast majority of matters the vendor’s title is completely uncontroversial. For this reason a practice has developed of including requisitions and answers in the contract. In our view the better approach is to raise only requisitions that need to be raised, rather than standard requisitions that are largely irrelevant and receive a standard response.

In a typical conveyancing matter using the By Lawyers contract there should be no need to raise requisitions except where the purchaser’s enquiries reveal a likely defect in title. The vendor warranties implied into all contracts by the Conveyancing (Sale of Land) Regulation 2017 are included as a reminder to vendors and for the information of purchasers.

Accounts management

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By Guy Dawson, CEO

There are many practitioners who through fear of mistake and the weight of responsibility do not run a trust account. This makes client transactions difficult for them as for example they are asked on short notice to provide bank cheques for settlements. It prevents money being held in trust on account of the practitioner’s future fees for counsel, consultants and contractors. It makes management of getting in estate cash assets cumbersome.

The fear is not really justified as the rules are readily understood and managed.

The simplest way to comply with state trust account regulations is to use an approved accounting software package with appropriate written delegations and procedures. All accounting records are required to be accurate, up to date and regularly monitored. The trust account department of all Law Societies and Institutes is available to assist with any questions. The Handbook on Trust Money and Trust Records, is a comprehensive guide to the statutory trust accounting requirements contained in the Legal Profession Uniform Law Application Act 2014, and the Legal Profession Uniform Law Application Regulation 2015.

By Lawyers provides a comprehensive straightforward appreciation of trust accounting in its Practice Management Guide.

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