Conveyancing & Property Law

The QLD Government has announced that it will be reviving the principal place of residence (PPR) duty exemption from 1 July 2012. The original PPR exemption was abolished for contracts formed from 1 August 2011.

It is not presently known whether the new PPR exemption will operate identically to the previous exemption and we will keep you updated of developments in this regard … watch this space. 

Contact McColm Matsinger Lawyers for your conveyancing matters.

Brigitte Thieltges
McColm Matsinger Lawyers

A decision in a recent case before the Qld Supreme Court* relating to an “off the plan” purchase of a unit, highlighted the need for buyers to take care before signing contracts and for developers to provide correct disclosures.

Recent amendments to the Body Corporate and Community Management Act 1997 (Qld) (“BCCMA:) which came into effect in 2011 provide that buyers may be able to terminate contracts for proposed lots where:

• The Community Management Statement (CMS) does not contain, or contains inaccurate, descriptions of how interest and contribution schedule lot entitlement are to apply to the scheme;

• Where the registered CMS is different from the one most recently received by the buyer; and

• Where the information contained in the Disclosure Statement most recently advised to the buyer is inaccurate.

The case in question however reiterated that a buyer could not rely only on the inaccuracies referred to above to terminate the contract and must be able to prove that it would be materially prejudiced if forced to proceed with the purchase.    This means that a buyer must have good, valid reasons for the termination and these reasons must relate to the inaccuracies or omissions – a buyer would not be materially prejudiced simply because they had changed their mind about the purchase.

It is always advisable to have your Contract reviewed by your solicitor before you sign it and this is particularly relevant where purchasing an “off the plan” property.  As part of our comprehensive service, we will provide you with an overview of your contract before you sign it.

On request, we also provide an in-depth review and detailed advice of “off the plan” contracts for our local clients and many inter-state buyers.

If you require assistance with an off the plan purchase please contact our office.

Brigitte Thieltges
McColm Matsinger Lawyers

*Zhang and Wu v South Sky Investments Pty Ltd and Anor [2011] QSC 367

Under the Queensland Building Services Authority Act 1991 (QBSA Act), a person is required to obtain an owner builder permit if they wish to perform building work to a value of $11,000 or more on their own property. If you are selling a property where you performed owner builder work within 6 years after completion, Section 47 of the QBSA Act states you must before signing the contract of sale, provide the prospective purchaser with a notice which contains certain disclosure details and a warning.

If this notice is not provided to the prospective purchaser the seller is deemed to have given the purchaser a contractual warranty that the building work was properly carried out.

It is therefore imperative that sellers take note of their obligations under the QBSA Act and estate agents preparing contracts of sale where there is an owner builder entry noted on the Title Search obtain legal advice on the necessary disclosure to buyers and procedure to be followed. 

Please click here to read more about this important topic.

Brigitte Thieltges
McColm Matsinger Lawyers

The First Home Owner Grant Act 2000 (the FHOG Act) provides for the payment of the first home owner grant (the grant) on application by qualifying applicants. 

Section 47(1) of the FHOG Act empowers the Commissioner to require an applicant to repay amounts paid in response to a grant application which are paid in error. 

A grant amount will be paid in error when payment is made on the basis of information or documents provided in the application for the grant, indicating that all criteria for entitlement to the grant under the FHOG Act have or will be met, but those criteria are not in fact met. 

Under various Sections of the FHOG Act, the Commissioner may, in addition to requiring repayment of the grant, impose further penalties where the amount has been paid because the applicant provided statements or documents, in relation to the application for the grant, containing information the applicant knew to be false or misleading or the applicant fails to repay an error amount upon written notice from the Commissioner.

Public Ruling FHOGA047.1.1 issued by the Commissioner of State Revenue sets out the principles the Commissioner will apply in deciding whether or not to impose a penalty under the FHOG Act for breach of the honesty obligations or the repayment obligations, and in what amount.  To access a full copy of this Ruling click here

Brigitte Thieltges

McColm Matsinger Lawyers

• Agreements need to be submitted to the Office of State Revenue for stamping within 30 days of the agreement date.  An extension of time for stamping of the agreement is generally granted where completion of the agreement is conditional on an event and the parties to the agreement do not have control over the event – these include finance approval to a buyer, building and pest reports, subdivision or rezoning approval, landlord’s consent to lease and sale subject to sale of another property.
• Examples of conditions which may not result in an extension of time being granted include the vendor delivering records or information to the purchaser, payment of money to discharge an outstanding debit or a condition which depends for its fulfilment solely on the purchaser or the vendor being satisfied with a particular matter or thing (e.g. purchaser being satisfied as to finishes of a house). 
• A Valuation from a Real Estate Agent or registered Valuer is required where the parties to the transaction are related or where there is an element of association between the parties.

If you require assistance with a conveyancing matter please visit our website for further information.

Brigitte Thieltges

McColm Matsinger Lawyers

The Queensland Government as extended the $10,000 building boost for a further 3 months to 30 April 2012.

Initially public response to the Boost appeared to be slow but in recent weeks there has been a significant increase in applications lodged and this has prompted the Government to announce the extension.

The $10,000.00 grant is available to all home purchasers (including investors and owner occupiers) buying or building a new home worth less than $600,000.00.

For more information and to check whether you would be eligible for the grant, follow the link below :-

http://boost.treasury.qld.gov.au/

If you require assistance with a conveyancing matter please visit our website for further information.

Brigitte Thieltges

McColm Matsinger Lawyers

At settlement, in addition to the balance settlement funds, a buyer will be required to pay its share of certain outgoings in respect of the property.  These include the land, water and  sewerage rates and body corporate levies (if applicable) as well as land tax in certain circumstances.  An adjustment in respect of these outgoings is normally made from the date of settlement to the end of the current period.  The buyer’s solicitors will obtain searches of the relevant service providers and upon receipt of the searches, will be able to determine the amounts payable by the buyer.  Electricity and gas charges are not adjusted at settlement and the seller and buyer must make their own arrangements for meter readings and disconnection / connection in this regard.  A less adjustment will also be made in settlement figures for any release of mortgage fee payable by the seller, the seller’s estimated water usage (if the buyer obtains a special water meter reading) and the cost of any additional bank cheques required by the seller over and above those provided for in the contract.

If you require assistance with a conveyancing matter please visit our website for further information.
Brigitte Thieltges

McColm Matsinger Lawyers

Before you sign on the dotted line, ensure that you have investigated and determined the correct buyer entity for the contract. Solicitors, as part of their retainer for acting in the conveyance, do not usually give legal advice with regard to the correct vehicle for purchase to suit your needs and we recommend that you discuss this with your accountant prior to your entry into the contract as once the contract has been signed, it may not be possible to change the buyer entity without stamp duty implications.  The issues to consider when determining the correct buyer entity include (but are not limited to) the tax implications (personal, capital gains tax and transfer duty), requirements of a mortgagee and estate planning.

If you require assistance with a conveyancing matter please contact us via our website.

Brigitte Thieltges

McColm Matsinger Lawyers

The Warning Statement attached to the Contract of Sale recommends to buyers that they obtain an independent valuation of the property before expiry of the cooling off period.  In the absence of a special condition in the contract to this effect, the contract is not conditional upon a valuation being obtained.  Solicitors do not give valuation advice and the price that you pay is something you need to satisfy yourself of.  Be aware however that if you are obtaining mortgage finance to purchase, the bank may obtain its own valuation of the property which could be less than that obtained by you.  The bank is under no obligation to accept the valuation you have received and will rely on its own valuation when determining the loan amount they are prepared to advance to you on security of the property.

If you require assistance with your property purchase or sale please contact us via our website.

Brigitte Thieltges

McColm Matsinger Lawyers

This is a term contained in all contracts for the sale and purchase of real property.  Essentially it stipulates that the parties to a transaction must perform all their obligations under the contract strictly by 5pm on the due date.
For example, if the contract provides for certain conditions (such as finance approval) to be confirmed by a certain date, as a buyer, you must ensure that you have notified the seller of satisfaction of the condition (or otherwise) within the contract time limits, failing which the seller may be able to terminate the contract.  Time is of the essence is also important when it comes to being ready to settle on the agreed settlement date as the contract provides for certain penalties to be imposed on the defaulting party (which can be either the seller or the buyer) if they are not ready, willing and able to settle on this date.

If you require assitance with your conveyancing matter please visit our website for our contact details.

Brigitte Thieltges

Conveyancing Manager

McColm Matsinger Lawyers