Click Conveyancing Blog

Love thy neighbour

Thu, 27 Oct 2011 23:29:00 GMT

We often have clients instruct us to act for them in disputes with their neighbours. These disputes sometimes arise quite quickly after our clients move into their new property.

We always advise our clients to make an effort to meet their neighbours before they purchase their dream property. Disruptive relations with neighbours can turn your dream home into a nightmare!

We feel that it is also important that when you move into a new property you make an effort to get along with your new neighbours. Think twice before you start an argument over something that might not be so important.

The following is an example of an email I received from a client after settlement:

"Hello,

I noticed at today's house inspection the neighbour on one side of the house has a gate that touches my house. I was wondering what my legal rights are to ask the neighbour to take his gate off my property"

The following is the reply that I sent to my client:

"If the gate is connected to your property in some way you are within your legal rights to ask for it to be removed. If it is just touching your house or does not really impact you in a negative way you need to consider what effect you asking them to remove the gate will have on your relationship with your neighbours.

We see lots of neighbourhood disputes. These disputes are often over very petty matters and they can be very stressful and expensive for all concerned. In our opinion it is always best to do your best to get along with your neighbour rather than be in conflict with them."

First Home - New Home Scheme - Changes to the First Home Buyers Scheme in New South Wales from 1 January 2012

Wed, 19 Oct 2011 00:05:00 GMT

From 1 January 2012 the “First Home Plus” scheme currently in place in New South Wales will no longer apply and the current exemptions and concessions of stamp duty will no longer be available to first home buyers.

At present, the “First Home Plus” scheme provides an exemption from stamp duty for any purchase of a first home under $500,000.00 and a concession of stamp duty for a purchase of a first home for more than $500,000.00 but less than $600,000.00. There are also exemptions and concession available for purchases of vacant residential land up to $450,000.00.

On 1 January 2012, the “First Home – New Home” scheme will replace the “First Home Plus” scheme in New South Wales which was brought about by the introduction of the Duties Amendment (First-Home-New Home) Act 2011 (NSW) which was given assent on 20 September 2011 and this legislation will commence on 1 January 2012.

The “First Home – New Home” scheme will only apply to agreements entered into, and Transfers which occur, on or after 1 January 2012 for property located in New South Wales.

This will mean that first home buyers will only be eligible to receive a concession or exemption from stamp duty if they purchase one of the following:

A new home (that has not been previously occupied or sold as a place of residence);
A substantially renovated home
A vacant block of land (this can be under an agreement of sale or transfer of vacant land that is intended to be used as the site of a first home and there is no time restriction to build on this vacant land)

There are also still limits on the dutiable value (purchase price) of the property in order to receive an exemption from stamp duty:

The purchase price of the new home must not be more than $500,000.00 to receive the full exemption from stamp duty
The purchase price of a block of vacant land intended to be the site of a new home must not exceed $300,000.00 to receive the full exemption from stamp duty.

First home purchasers will also be eligible to receive a concession of stamp duty where:

The purchase price of the new home or off the plan property is over $500,000.00 but no more than $600,000.00; or
The purchase price of a vacant block of land is over $300,000.00 but no more than $450,000.00.

First home buyers will not be able to gain the benefits of the “First Home-New Home” scheme if they purchase an existing home to knock down and rebuild a new home on.

A substantially renovated home is defined as:

A new residential premises within the meaning of section 40-75(1)(b) of the New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth; and
That, as renovated, has not been previously occupied or sold as a place of residence

“Substantial renovations” of a building is defined under that legalisation as “renovations in which all, or substantially all, of a building is removed or replaced. The renovations may, but need not, involve the removal or replacement of foundations, external walls, interior supporting walls, floors, roof or staircases.”[1]

The normal eligibility requirement that a first home purchaser must occupy the home as their principal place of residence for a continuous period of six (6) months commencing within twelve (12) months from the completion of the agreement will still apply.

The $7,000.00 First Home Owners Grant will continue to be available to all eligible first home buyers as it has previously.

First home buyers will still be eligible to receive the current” First Home Plus” scheme exemptions and concessions of stamp duty for agreements entered into, and Transfers which occur, on or before 31 December 2011.

[1] First Home – New Home – FAQ - OSR Website

NSW Residential Tenancy Laws overhaul

Thu, 31 Mar 2011 04:42:00 GMT

Recently the NSW Residential Tenancy Law was completely restructured. These changes became effective on 31 January 2011 pursuant to the Residential Tenancies Act 2010 (Act)

Who does the Act apply to?

The new laws apply to all existing and new residential tenancies regardless of whether those tenancies are under a written or oral agreement. Pre-existing leases do not need to be amended however where there are inconsistencies between the terms of a lease and the terms of the Act, the Act prevails.

Are there any leases not covered by the Act?

The Act does not apply to all rented accommodation in NSW. Examples of some of the types of accommodation that the

Act does not apply to include:
• aged-care or retirement villages
• serviced apartments, hotels, motels and backpackers hostels
• holiday parks
• boarding and lodging agreements
• arrangements giving a person the right to reside for up to 3 months for a holiday.
• Tenancy agreements which are part of an option to buy arrangement

Important Changes to Rights of Tenants under the Act

The rights of tenants under the Act have been broadened and include the following:
• Tenants are to be provided with a copy of the NSW Fair Trading’s New tenant checklist before they sign a residential tenancy agreement. Fines apply if this is not done.
• Tenants are not to be required to pay a holding fee until their tenancy application has been approved. If the tenant changes its mind about the tenancy after it has paid the holding fee it loses that fee.
• Before the tenant signs a lease, the landlord is required to disclose:
   - if a contract for sale has been prepared for the property
             - if a mortgagee has commenced court action to take possession of the property; and
             - certain material facts about the property.
• A material fact is defined as information about the property that would be relevant to a tenant’s decision to live in the property eg, if there are any significant health or safety risks, or if the property has been subject to a serious flood or storm in the last 5 years
• Failure to disclose this mandatory disclosure information may allow the tenant a means of getting out of the tenancy and seeking compensation from the landlord.
• Landlords and their agents are no longer permitted to charge tenants a lease preparation fee or to have lease agreements which contain compulsory carpet cleaning clauses (unless the tenant is permitted to keep a cat or dog in the property).
• The amount of bond that a tenant can be required to pay is now capped at 4 weeks for all properties including those which are furnished. The bond cannot be increased during the term of the lease in line with rental increases.
• The new time limit for lodgement of bond monies with Fair Trading is 10 days from the date of payment.
• The Act stipulates that tenants have to be given at least one way to pay their rent that does not attract a fee eg, by direct transfer into the agent’s bank account.
• The Act caps the amount of rent in advance that can be requested at 2 weeks. Previously, where the rent was over $300 per week a tenant could be asked to pay one month in advance.
• Tenants are not permitted to be charged for water usage unless the property has had water efficient measures installed. Landlords under pre-existing leases who wish to continue charging for water usage have 12 months from the start of the new Act to install water efficient measures.

Alterations to the Landlord’s Property & Subletting

Prior to the formal introduction of the Act, there had been conjecture that tenants would be permitted to make alterations to a property without first having to obtain the Landlord’s approval. This is NOT the case.

Tenants are still required to obtain written permission before carrying out any alterations to a property. What has changed is that landlords must not unreasonably refuse requests from a tenant to make a minor change to the property eg installing child proof locks on windows, pay television connections, installing picture hooks etc. A landlord cannot unreasonably refuse a tenant’s request to sublet part of the premises or bring in a co-tenant.

Sale of Property

The Act now requires that where residential premises are to be sold, the tenants must be given 14 days notice prior to the first inspection. The Landlord’s agent will be permitted two inspection periods per week (and more by agreement) on days and at times agreed with the tenant. The tenant is entitled to ask for compensation by way of a rent reduction during the inspection period to compensate them for being inconvenienced.

Ending Tenancy

Landlords are now required to give at least 30 days notice if they want the tenant to move out when the lease expires (up from 14 days). Where a property is sold after a fixed lease term has expired, Landlords are now required to give at least 90 days notice (up from 30 days). Tenants are now permitted to leave at any time after receiving notice of termination and they are only required to pay rent until they move out and hand the keys back to the Landlord.

What happens with goods left behind

Under the Act, rubbish left behind by a tenant when they vacate a property can be disposed of immediately. Any other goods left behind by a tenant must not be disposed of unless the landlord has taken reasonable attempts to notify the tenant that their goods will be disposed of unless collected within a certain period. General items left behind must be held for at 14 days eg furniture and items of clothing. Personal documents such as passports, birth certificates, bank books and photos have to be kept for at least 90 days.

A Great Time to Buy Property in NSW

Mon, 08 Nov 2010 23:57:00 GMT

We are being bombarded in the news with reports about housing in Australian and in particular NSW being unaffordable.

The first thing I should say is that I think that this so called “crisis” is a bit of a media beat up. I still have many clients buying and selling real estate both as investors and as owner occupiers.

In any event, if there is a “crisis” and if prices have fallen it is probably the best time to buy a property. If you have any knowledge about investing in shares and property you would have heard that the best time to buy an investment is in a depressed market.

At clickconveyancing we recognise the benefits of investing in property and in young people buying their own home. The benefits of investing and of owning your own home are well known. If you look at the recently published list of Australia’s 200 richest people you will find that most have made their money in property.

We would like to do our bit to encourage investors and home buyers back into the property market. Apart from providing you with top notch fixed price conveyancing the best way we can do that is by helping you save money in your conveyancing costs.

For the month of June we are pleased to announce that we have reduced our conveyancing fees for purchases and sales of property to $895 inclusive of GST and disbursements.* This offer will be especially attractive to savvy property investors and budget conscious first home buyers.

We have looked at what other conveyancers and property solicitors are charging and we honestly think that our June special provides the cheapest conveyancing price in NSW. Contact us now to take advantage of this special offer.

* This offer only applies to properties worth less than $1 million.

Welcome to the Click Conveyancing Blog

Mon, 08 Nov 2010 23:55:00 GMT

We have made this addition to our website in the hope that by doing so we can provide you with a more meaningful website experience. Over the coming months we will be adding weekly posts in which we will provide you with updates on developments in conveyancing, general real estate and property news and related industries such as home loans, inspections, tax law and buying property. We will also try and keep you updated on developments within clickconveyancing and the services we offer.

We hope that you will use the commenting feature to interact and share your property experiences with other people who are buying and selling real estate.

If you have any specific questions arising from our posts or generally about conveyancing you should not hesitate to contact us by email or telephone.