Fast Facts

8 March 2010 - Joint Tenants and Tenants in Common?

Q. What is the difference between a Joint Tenancy and Tenancy in Common?

A. A Joint Tenancy is where people own property together in undivided shares and with a right of survivorship ie. on the death of one owner, their interest automatically passes to the surviving owner(s) and that interest cannot be disposed of by Will or Deed. A Joint Tenancy can be severed by one owner and upon severance become a tenancy in common. A Tenancy in Common is where people own property in divided shares. An Owner may deal with their share of the property, and leave it in a Will or Deed and there is no right of survivorship. Ownership can be stated as being “in equal shares” or as a percentage (eg. 50% each or 25% & 75% respectively)

 

1 March 2010 - The effect of structures not approved by Council

Q. If there are structures on a property which have not been approved by Council can the Buyer terminate the Contract?

A. There is no provision in the Standard REIQ Contract which allows the Buyer to terminate a Contract if there are structures on the land which have not been approved by the Council.

TIP: If a Buyer is particularly concerned with obtaining information that all structures on the property have been approved by the Council then one of the following two options should be adopted:

(i) A Special Condition should be inserted in the Contract making the Contract subject to Council having approved all structures on the property and that condition should have a set time limit; or

(ii) The Buyer should conduct enquiries with the Local Council prior to signing the Contract to ascertain whether or not all necessary approvals have been obtained.

Commonly the type of structures which may not have Council approval are things such as swimming pools, pool fencing, pergolas, extensions, carports and other similar structures.

If you require assistance with drafting a Special Condition as suggested under Tip (i), please do not hesitate to contact us.

 

22 February 2010 - PAMD Form 30c Warning Statement

Q. Is it necessary to attach a fresh Warning Statement each time a Seller makes a written counter offer to a Buyer? Is it also necessary to direct the Buyers attention to the Warning Statement each time a counter offer is made to a Buyer?

A. Although the law is not entirely conclusive, the better view is that the answer is yes. At least one Court decision supports that view.

So, where a Buyer makes an offer and the Seller makes a counter offer on different terms, we suggest a fresh Warning Statement be attached to each offer made by the Seller when it is submitted to the Buyer. Also, each time a counter offer is made it is important to direct the Buyers attention to the Warning Statement, as you do with the initial offer from the Buyer.

The Buyer should sign the Warning Statement before they sign and accept the second or subsequent offer.

It is unlikely that the Seller could rely on the first Warning Statement as a Warning Statement for subsequent written offers.

Although this is a cumbersome procedure, the PAMD legislation seems to be interpreted strictly by the Courts. It is therefore better to be safe and do the extra paperwork. If the process is not done correctly, the Buyer may be placed in a situation where they can terminate to the detriment of the Seller.

For example: A Buyer signs a Contract (with a Warning Statement) offering to buy a property for $600,000.00. The Seller rejects the offer and counter offers to accept $620,000.00. At the time the counter offer is submitted to the Buyer, a fresh Warning Statement should be attached and signed by the Buyer before they sign the Contract. The Buyers attention should also be directed to the Warning Statement in the usual way.

 

15 February 2010 - Sustainability Declaration Version 2

Q. What is the current Version of the Sustainability Declaration?

A. On 4 February 2010 the Department of Infrastructure and Planning released a new, simpler version of the Sustainability Declaration. The new form is Version 2. The previous version of the form, which was released on 27 November 2009, will still be accepted, however you are encouraged to use the form attached herewith. On the spot fines will be issued to those who fail to comply from 1 March 2010. If you require further information please do not hesitate to contact us.

 

8 February 2010 - What does Time of the Essence mean?

Q. What does it mean that time is of the essence in the standard REIQ Contract?

A. “ Time is of the essence” means, that any time stated in the contract for doing something must be strictly complied with, otherwise the other party may be entitled to terminate the contract. If, for example, a purchaser does not comply with a condition due in the Contract by the date stated therein, then they will be in breach of Contract and the Vendor has several options available to them, including to terminate the Contract. If for some reason the purchaser feels they will not be able to comply with a condition in the Contract by the due date, then they may request an extension of that condition. We recommend that any request be issued in writing to the Seller before the expiration of the due date and confirmation must be received from the Seller that they are agreeable to the extension before the time limit for the condition expires, in order to avoid being in breach.

 

1 February 2010 - Changes to BCCM 14 Contract Warning for Units

Q. What Contract Warning needs to be attached to a Contract when buying a Unit?

A. In addition to the Contract and Form 30c you should have a separate BCCM Form 14 Contract Warning (Body Corporate Information). It is critical that the correct version of both the Form 30c & BCCM Form 14 are correct. Failure to comply may result in the Buyer being entitled to terminate the Contract. It has been announced that a new version 8 of the BCCM Form 14 Contract Warning (Body Corporate Information) was introduced from 1 January 2010. The previous version of this Form will remain approved for use until 1 April 2010. Attached for your reference is a copy of the new Form. For further information, please contact us.

 

25 January 2010 - Building & Pest Inspections

Q. If the Building and Pest Inspection is not satisfactory to the Buyer, can they simply terminate the Contract?

A. The Buyer may terminate the Contract by notice in writing to the Seller by 5:00pm on the Building and Pest Inspection Date.  If the Buyer fails to terminate by 5:00pm on the Due Date then the Buyer will lose their right to terminate the Contract and the condition will be deemed satisfactory. The Buyer must act reasonably in making their decision to terminate the Contract and must provide a copy of the report to the Seller, if requested.  If they do not act reasonably, then they may face legal proceedings and potentially forfeit their deposit.   
 

18 January 2010 - Changes to First Home Owners Grant & Application Form

Q. I am a First Home Owner, purchasing a property worth $1,050,000, am I still eligible for the Grant?

A. The Queensland Government have announced further restrictions to the First Home Owners Grant.

From 1 January 2010, people spending more than $1 million on their first home will no longer be eligible for the $7,000 State Government Grant.

In accordance with legislative changes, the Office of State Revenue have introduced a new First Home Owners Grant Application form, which is now effective and available from our office. The transitional period for use of the old form will end on 29 January 2010 from transactions prior to 1 January 2010.

The new form will also advise in which instances valuations will be required to be submitted as evidence of the value of the property. A valuation will be required to be submitted in all instances in which a related party has been involved in the transaction.

For further information relating to the new FHOG form, please contact our friendly team on 1300 553 750.

 

11 January 2010 - Sustainability Declaration

Q. What is the Sustainability Declaration for dwellings that was introduced on 1 January 2010?

A. The Sustainability Declaration is a compulsory declaration that must be made by the Seller (vendor) when selling a house, townhouse or unit. It will be required for the sale of a property from 1 January 2010. That includes properties listed but not sold prior to that date.

The Seller and Sellers Agent are each responsible for ensuring each Buyer receives the Declaration during the marketing campaign up until completion of the sale. Penalties apply to the Seller and Agent if this is not done.

Advertisements for the sale of a property must state where a copy of the Declaration can be obtained.

If the owner is unable to complete the form, they can seek help from another person to complete it on their behalf as long as the owner signs it. Where an owner cannot sign the form, a person authorised under power of attorney or other statutory power may sign the form.

The Declaration will identify the property’s environmental and social sustainability features in four key areas:

• Energy
• Water
• Safety
• Access

It is said that the Declaration is intended to increase awareness of a dwelling’s sustainable building features and act as an incentive for sellers to improve the dwelling’s sustainability performance. A Buyer will not have the right to terminate a contract if a Declaration is not provided, but false or misleading information in the Declaration may entitle a Buyer to claim compensation from the seller.

For further information please contact us on 1300 553 750.

 

14 December 2009 - Changes to First Home Owners Boost

Q. What are the changes to the First Home Owners Grant that will be effective from 1 January 2010?

A. The Australian Government have announced that the Boost will end completely on 31 December 2009. From 1 January 2010, the standard $7,000 First Home Owners Grant will continue to apply. Set out below is a table of how the Grant is currently structured:
Commencement date QLD grant Commonwealth boost (established homes) Commonwealth

Commencement Date	QLD Grant	Commonwealth boost (established homes)	Commonwealth Boost (new homes)
Before 14 October 2008	$7,000	n/a	n/a
14 October 2008 to 30 September 2009	$7,000	$7,000	$14,000
1 October 2009 to 31 December 2009	$7,000	$3,500	$7,000
1 January 2010	$7,000	n/a	n/a

 

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