Conveyancing Works in Queensland

While there are a number of minor changes made in this new version contract, the most interesting of the changes relate to:

• updates to incorporate the impact of the Neighbourhood Disputes Resolution Act and require disclosure of any existing dispute proceedings;
• clarifications to the Pool Safety related clauses which among other things confirms that it is the buyer who must arrange and pay for the inspections;
• changes to take into account the upcoming Personal Property Securities laws;
• the introduction of a new clause to set out the right of parties and a way to ensure the contract can continue in an orderly manner when the transaction is affected by a Natural Disaster such as flood or cyclone which prevents the parties from completing the contract on time.

While we would expect these changes to have minimal impact on most people, Buyers and Sellers should always ensure that they carefully review and understand all contract terms before signing.

• Key element in S&G’s strategy to grow outside the personal injury legal market.
• Will underpin growth strategy for domestic conveyancing practice in Queensland with expansion in to New South Wales, Victoria and eventually nationally.

Slater & Gordon Limited (ASX: SGH) announced today that it had agreed to acquire the Queensland conveyancing specialist firm Conveyancing Works for a consideration of approximately $5 million.

The acquisition of Conveyancing Works, which has forecast full year revenue of approximately $8.0 million, will be a major step forward in Slater & Gordon’s strategy of developing its non personalinjury legal practices.

Conveyancing Works currently has an estimated 14% market share of the domestic conveyancing services market in Queensland based on the number of transactions completed in 2011 and is the largest specialist firm operating in this area in Australia.

Slater & Gordon Managing Director, Andrew Grech said the company would use the acquisition as a base from which to develop a significant share of the domestic conveyancing market in Queensland, Victoria and New South Wales over the next few years and eventually nationally.

“This announcement delivers on our commitment to more actively pursue a strategy of growth in the non-personal injury consumer legal services sector.

“It also forms part of our longer-term strategy of expanding the range of legal services that we offer everyday Australians,” Mr Grech said.

Conveyancing Works developed its business model and practice management system to enable it to complete high volumes of transactions for clients efficiently. It is based in Brisbane and has nine offices in Queensland (at Cairns, Caloundra, Hervey Bay, Mackay, Maroochydore, Palm Beach, Rockhampton, Southport and Townsville), and more than 50 staff members, all of whom will be retained.

Conveyancing Works Executive Chairman, Don Horsfall, said: “This is an amazing opportunity for our business, which started in 2000 with just two staff.”

“We have grown our law firm based on a strong commitment to delivering efficient conveyancing services and supporting Queenslanders in their home acquisition goals”, Mr Horsfall said.

“Taking this business model beyond Queensland has been something that we have dreamed of, but we have lacked the necessary national infrastructure and competencies to realise this strategy.

“This acquisition by Slater & Gordon will enable us to expand nationally without compromising on our commitment to high service standards. As the principals from Conveyancing Works will beremaining with the business we will have the ability to support and assist in developing and expanding Slater & Gordon’s conveyancing service offering.”

It is expected that the transaction will be completed on or about 25 November 2011. The transaction has been the subject of an extensive due diligence process, which has been substantially completed over the last twelve months.

The Consideration includes shares being issued to the Vendors as well as deferred consideration (of $1.5 million) payable within 14 months of completion, conditional on certain post completion events and targets being achieved. The share component is subject to escrow periods totaling three years.

On 28 October 2011, the Queensland Law Society announced that there would be new versions of the REIQ contracts released on 1 November 2011 to coincide with the commencement of the Neighbourhood Disputes Resolution Act 2011. However on 31 October 2011, the Queensland Law Society announced that the release of the new contracts would be delayed until early December.

Even though the new contracts have been delayed, the Neighbourhood Disputes Resolution Act 2011 still commences on 1 November 2011. According to information published on the website of the Department of Justice and Attorney-General, the Act provides more effective remedies for neighbours to help resolve disputes about dividing fences and trees, and also gives jurisdiction to the Queensland Civil and Administrative Tribunal (QCAT) to deal with these matters.

For those buying and selling, the changes require a seller of land affected by an application or order dealing with matters under the Act to give a copy of the application or order to the buyer before the buyer enters into a contract. If this is not done, the buyer can terminate the contract. Refer to Part 7 of the Act for further details.

As the release of the new contract has been delayed until early December, please be sure to check back here for further updates on theses and other changes to the contracts as more certain information become available.

Financiers and settlement of your property

Whether you are buying or selling a property, it is likely that there will be a financial institution involved in the transaction. It is vital that the financial institution involved is prepared to ensure settlement proceeds on time. Therefore, when you are selling or purchasing a property, you need to keep in touch with your financier to ensure that you have completed documents and provided all the information that your financier requires.

Financier requirements when selling

As a general rule, when you are selling a property which has a mortgage over it, you will need to complete the following:

• Contact your financier as soon you are considering selling to determine an approximate payout figure so you know how much you need to sell the property for.
• As soon you have a contract of sale, contact your mortgagee to ask that they begin preparations to discharge the mortgage. You may need to:
• complete and return your financier’s release /discharge of mortgage form; and
• provide your financier with a copy of the contract.

Financier requirements when purchasing

When you are purchasing a property and are taking out a mortgage to assist in the purchase, you should to complete the following:

• Ideally, prior to signing a contract, contact your financier to obtain a pre-approval so you know approximately how much money you can borrow;
• Advise your financier as soon as you have a contract of sale in place and when the finance approval is due under the contract (finance date);
• Keep in contact with your financier to make sure you will receive the unconditional finance approval letter from your financier prior to the finance date;
• Keep Conveyancing Works Solicitors updated and let us know as soon as you become aware that you will need an extension of the finance date or you have received unconditional finance approval;
• Once you have received unconditional finance approval, keep in contact with your financier to ensure that you receive, complete and return all required mortgage documentation in a timely manner; and
• Contact your financier a few days prior to settlement to ensure they are ready for settlement.

During the course of the conveyance, if you have any queries or concerns regarding your financier or the conveyance, please contact Conveyancing Works Solicitors and one of our friendly staff will assist you and point you in the right direction.

In Queensland, standard REIQ Contracts and ADL Contracts stipulate that time is of the essence – but what does this mean?

In simple terms it means that the parties must perform their obligations under the Contract by and when they fall due or there may be serious consequences.

As an example, a Contract may be due to settle 30 days from the Contract Date. Therefore, each party (and their bank if finance is being obtained or there is a mortgage on the property) must be ready for settlement on the 30th day or they will be in breach of an essential term of the Contract. One party may ask for an extension of this date but the other party may not agree and is not obliged to do so. If they do not agree to an extension they may elect to continue with the contract and take the other party to court to make them complete the contract and/or claim against the party in breach for loss suffered as a result of that party’s failure to perform. Alternatively, they may elect to terminate the Contract and take further legal action against that party for loss suffered as a result of their failure to perform.

Another important example is payment of a Deposit under the terms of the Contract. A Deposit may be due to be paid when a party signs the Contract. However, if the Deposit is not received and receipted by the Deposit Holder on the Due Date, then the Buyer will be in breach of an essential term of the Contract and the Seller may terminate the Contract and keep the Deposit or, if it has not yet been paid when due, recover the amount of the Deposit from the Buyer in court.

So as you can see, due dates should not be taken lightly and if you believe you may need more time to perform your obligation under the terms of the Contract you must contact your solicitor as soon as possible so that the parties may negotiate an extension BEFORE the due date.

Reminder – Transfer Duty Changes Soon in Effect! – 20 July 2011

Don’t forget to check the changes to transfer duty and keep them in mind when timing your purchase. Contracts signed and dated from 1 August 2011 will be subject to the new transfer duty regime. You can read more in these fact sheets from the Queensland Budget website:

• First Home and Vacant Land Concession
• Duty Comparison and Building Boost Information

You can find a Duty Calculator on the Office of State Revenue website.

Make sure your contract is accurate. Some errors may require a new contract to be prepared and this could mean you will lose the right to claim a concession!

Buying or selling a property can be a stressful experience, but with these helpful hints you’ll be well on your way to being ready for each step of the conveyancing process from right after you sign all the way through until settlement. For each of the stages in the process, you will need to be sure you can tick of each of the boxes.

• Contract Signed
• Emailed or faxed a copy of the contract to Conveyancing Works;
• Posted the Original Contract to Conveyancing Works;
• Taken out building and public liability insurance;
• Organised Building and Pest Inspections and a pool safety inspection if applicable;
• Notified Conveyancing Works of the results of the inspection(s) by the due dates;
• Organised finance approval;
• Notified Conveyancing Works of finance approval by the due date; and
• Contacted Conveyancing Works to advise whether additional searches are required.
• Going Unconditional
• Ensured that Conveyancing Works has been contacted regarding inspections, finance approval and any other conditions by the due dates;
• Contacted the bank to complete and sign mortgage documentation
• Leading up to Settlement
• Completed, signed and returned Conveyancing Works documentation;
• Contacted the bank to ensure that they are ready for settlement;
• Organised to deposit the balance of settlement funds, stamp duty and other fees to Conveyancing Works.
• Just Prior to Settlement
• Organised a pre-settlement inspection of the property.
• Settlement
• Received a call from Conveyancing Works confirming that settlement has been effected; and
• Receive a final letter from Conveyancing Works after settlement.

• Contract Signed
• Emailed or faxed a copy of the contract to Conveyancing Works;
• Contacted the bank/mortgagee to advise that the property has sold;
• Completed a discharge/release of mortgage with your bank;
• Cooperated with the buyer to allow inspections.
• Going Unconditional
• Ensured that the bank has commenced preparing a release of mortgage.
• Leading up to Settlement
• Completed, signed and returned Conveyancing Works documentation;
• Signed and returned the Transfer of Land documents (witnessed by a Justice of the Peace) to Conveyancing Works;
• Contacted the bank to ensure that there will have sufficient funds to release the mortgage.
• Just Prior to Settlement
• Finalised your arrangements to vacate and removed all possessions from the property;
• Dropped off the keys to the real estate agent.
• Settlement
• Received a call from Conveyancing Works confirming that settlement has been effected; and
• Receive a final letter from Conveyancing Works after settlement.

The following information is drawn from the Queensland Government State Budget Website (as at 15 June 2011):

According to the Queensland Government’s website, the transfer duty rate structure will be revised to ensure transfer duty payable on a home remains lower in Queensland than under the standard rate in any other mainland state of Australia.

This is the transfer duty concession that people who are not first home buyers receive when buying a home to live in as their principal place of residence.

This includes first home buyers purchasing blocks of residential land to build on.

You can compare the new transfer duty rates to the current rates by downloading this PDF document: http://www.budget.qld.gov.au/current-budget/tax-reform/transfer-duty-rates-building-boost.pdf

Further details will be provided as they become available.

If you have just signed a contract or will be shortly, congratulations! What you may not know, is that you need to be available to contact so that your solicitors are able to act for you. So if you are going on holidays during the course of your contract or will be otherwise unavailable, here’s a few things you should think about and plan before you go:

• Make sure you leave yourself sufficient time to get everything organised before you leave;
• Tell your solicitor that you will be unavailable during the course of the contract as soon as possible;
• Make sure you have signed any necessary documentation required by your solicitor and bank releasing your mortgage if you are selling, or financier if you are purchasing;
• Provide your solicitor any contact numbers, emails and mailing addresses while you are away so they may obtain your instructions;
• Provide your solicitor any specific instructions before you go if you will not be available, if possible;
• Ask your solicitor if there is anything you need to do before you go;
• If you are planning to sign documents under a Power of Attorney, make sure that the document is fully signed and lodged in the Titles Registry;
• If you will be absent at the time of settlement, for a seller, ensure that the property has been cleaned and all your belongings removed, and for a purchaser, ensure that you arrange for someone to do a pre-settlement inspection on your behalf to make sure everything is in order;
• Check your emails frequently;
• If you are purchasing, make sure your money is in your solicitor’s trust account available for settlement;
• If you are selling, make sure you have given your solicitor instructions as to where you want the money to go; and
• Be aware that unexpected things can happen, such as the other party needing to extend the dates for their own reasons, so stay contactable during your trip.

And most importantly enjoy yourself!

There are changes that will effect disclosure obligations of sellers of lots in a community titles scheme as a result of the Body Corporate and Community Management and Other Legislation Amendment Act 2010, which is due to commence on assent.

The following additional disclosure is required by the seller when a contract is entered into for the sale of both existing and proposed lots:

• The Community Management Statement (CMS) must now accompany the disclosure statement for an existing lot and given prior to the buyer signing the contract;
• The Body Corporate and Community Management (BCCM) disclosure statement must include 3 new statements:
• The extent to which annual contributions fixed by the body corporate and payable by the owner of the lot, to be disclosed, are based on the contribution schedule lot entitlements for lots in the scheme;
• The extent to which annual contributions fixed by the body corporate and payable by the owner of the lot, to be disclosed, are based on the interest schedule lot entitlements for lots in the scheme; and
• That the contribution schedule lot entitlements and the interest schedule lot entitlements are set out in the CMS.

There will be a new version of the BCCM Form 14 available for use but is yet to be released. The current form should be used until the new form is released.

Upon commencement, Sellers must comply with these new disclosure obligations immediately for contracts not yet issued but also for contracts given to a proposed buyer but not yet signed by both parties.

If a contract has been given but not signed by both parties, after commencement, a seller must either give a new disclosure statement in compliance with the new s 206 or s 213 or if the disclosure statement has been already given to the buyer the seller must give the buyer a written notice stating the information in s 206(2)(b), including the 3 statements above, a statement of the amount of annual contributions currently fixed by the body corporate as payable by the owner of the lot, and a copy of the CMS.

The new BCCM Form 14 will be available once released on the following website: http://www.justice.qld.gov.au/justice-services/body-corporate-and-community-management/forms-and-publications

If you are considering transferring a property to a relative or loved one, a related party transfer is an option to consider. Related parties may transfer property by way of gift or for consideration. Unlike a standard sale and purchase transaction, a related party transfer usually:

• requires no written agreement (Contract of Sale) between the parties;
• has no strict deadline.

For Conveyancing Works to assist you in completing your related party transfer you will need to:

• provide a copy of the most recent rates notice for the property and current levy notice from the Body Corporate if the property is a unit;
• provide 100 points of Identification for all parties to the transaction;
• be prepared to obtain an appraisal or valuation for the property after initially contacting us;
• notify your bank of the related party transfer if there is a mortgage over the property;
• arrange finance with a financial institution if necessary; and
• obtain your own independent financial advice and estate planning advice.

So if a related party transfer is a viable option for you or you have any queries please do not hesitate to contact Conveyancing Works.

If you are thinking about selling your property, Conveyancing Works can help you prepare an REIQ / QLS standard contract! Our friendly and professional Contract Preparation service can help ensure you have considered everything necessary to correctly prepare your contract of sale.

Before we can start assisting you with this you will need to already have a buyer interested in the property – you will need to have the basic contact details of the person buying the property to allow us to fully complete the contract.

Apart from that, here are a few other important tips for you to start thinking about so that we can promptly assist you with the preparation of the contract:

• Keep your current rates notice at hand (we need this to obtain the property details such as the lot number and the plan number);
• Have 100 points of Identification ready (we need this to confirm your identity and you will also need this later in the process);
• Ensure that all owners of the property are aware of the sale and that they will be agreeable to having the contract prepared; and
• Start thinking about anything you may know of that currently impacts the property such as easements, notices by local authorities to do work, caveats or anything else you might think of. Providing us with all information about the property is very important to ensure that you fully inform the buyer of the matters that affect the property and so that you comply with your disclosure obligations.)

If you are interested in this service please contact our Client Services Team who will be able to provide you with a competitive quote and send you out the details you need to get us started.

Your contract will be drawn up and sent to the buyer for their signature within 3 business days from when we first receive your completed client questionnaire.

The recent flooding in Queensland has left many families and businesses devastated. If you are buying or selling property in flood affected areas it can be heartbreaking to see the property you are buying or selling damaged.

The standard REIQ contracts include provisions to assign the risk of the property to the Buyer from 5PM on the Contract Date. As a standard part of our process, we always advise all of our Buyer clients to obtain insurance cover immediately.

Sellers who believe that they have an unconditional contract of sale on a property that has been damaged or destroyed by flooding, should exercise care in relying upon this, as avenues may still be available for Buyers to terminate or rescind the contract.

For Buyers and Sellers who are reconsidering proceeding with their property transaction following flooding, we urge them to contact their legal representation as quickly as possible to ensure the matter can be dealt with in a timely manner.

Apart from the obvious distress of facing flood related damage to property and possessions those dealing with law firms affected face the further stress of being able to keep in contact with their legal advisers. Where time is of the essence of a contract, such as in most residential property sales, these events do not necessarily mean that conditions or settlements can wait and this highlights the need to be able to maintain communication with your legal advisers throughout the entire transaction.

During the near closure of the Brisbane CBD, many financiers and law firms were forced to close their offices and many settlements were delayed as a result. At Conveyancing Works we were able to provide uninterrupted service to our clients through our use of innovative systems and infrastructure and a professional team determined to provide continuous service to clients.

There are new laws that take effect from 1 December 2010 requiring a Pool Safety Certificate to be provided to buyers of most residential properties. This law will apply to your contract if settlement occurs on or after 1 December 2010.

If the seller does not provide a Pool Safety Certificate, they must give the buyer a notice on the approved form stating that there is no Pool Safety Certificate.

If a buyer settles a property without obtaining a Pool Safety Certificate, they will be required to obtain one within 90 days of settlement and meet any costs in doing so.

The “Notice of No Pool Safety Certificate” will include the following information:

• If no pool safety certificate is in effect for the pool at settlement, the purchaser is notified that:
• the pool may not comply with the pool safety laws and may pose a safety risk to young children;
• they must ensure the pool complies with the pool safety standard and obtain a pool safety certificate for the pool from a licensed pool safety inspector within 90 days of the settlement;
• they must not enter into an accommodation agreement (eg. a lease) for the property until the pool complies with the pool safety standard and a pool safety certificate is in effect for the pool;
• they may incur costs in ensuring the pool complies with the pool safety standard and obtaining a pool safety certificate for the pool;
• they may commit an offence if they do not comply with their pool safety obligations, with penalties of up to $16 500 for individuals or $82 500 for corporations; and
• they must ensure the pool complies with the previous pool safety laws applicable to the pool until a pool safety certificate is obtained for the pool within 90 days of the settlement.
• If the pool is a shared pool (common property of the body corporate for example) in addition to the above:
• both the purchaser and occupier must be notified;
• the Pool Safety Certificate must be obtained by 30 November 2012 or 31 may 2011 for short-term accommodation rather than within 90 days of settlement;

Pool Safety Certificate forms are available on the Department of Infrastructure and Planning website at http://www.dip.qld.gov.au/forms-templates/pool-safety-forms.htm

Effective from 1 October 2010, there are new versions of the PAMD Form 30c and BCCM Form 14.

The approved versions of the Forms to be used in the sale of residential property in Queensland are as follows:

• PAMD Form 30c - Warning Statement Version 6; and
• BCCM Form 14 - Information sheet Version 9 (for the sale of lots in a community titles scheme).

Important note - previous versions of these forms are revoked on and from 1 October 2010 and should not be attached to any proposed relevant contract prepared on or after 1 October 2010.

Copies of these forms can be obtained using the following links:

• PAMDA Form 30 from Department of Employment, Economic Development and Innovation
• BCCMA Form 14 from the Department of Justice and Attorney-General

Many within the residential property sales industry will be pleased to hear that the Property Agents and Motor Dealers Act has had amendments passed that streamline some of the more technical compliance provisions of Chapter 11 of the Act.

The amendments commence on October 1, 2010 and the major changes to the Act are as follows:

• Less technical/detailed requirements relating to the order of presentation of documents during the contracting process – the Act no longer specifies any particular order in which documents must be presented;
• Provisions to alleviate some of the concerns relating to whether contract negotiations necessitate a re-issue of contracts and another full compliance with the Act’s requirements;
• More certainty as to the validity of contracts with further limitations placed upon the rights of buyers to terminate contracts due to technical errors in the contracting process;
• Transitional provisions to make the new rules applicable to contracts that remain in existence beyond the commencement of the amendments – from 1 October 2010, the right to terminate contracts (from the perspective of PAMDA compliance) will only be those available under the amended Act;

These amendments are intended to reduce “red tape” for industry while retaining important consumer protections.

Effective from 1 July 2010, there are new versions of the REIQ Contract for House and Land and Community Titles Scheme (CTS) properties (Units).

There is good reason for the change in the Contract additions so it is important that you use the correct versions.

The Queensland Law Society has drafted a comprehensive comparison table showing the differences between the 6th and 7th editions of the House and Land Contracts as well as the 2nd and 3rd editions of the CTS Contracts.

For most people the key change is to the “Building and Pest Inspection Reports” Clause. In the 6th edition the Buyer was deemed to be satisfied with these reports if they did not terminate the contact before the end of the day on the Inspection due date. The new edition contracts remove this element and now operate in a way similar to the finance clause, requiring that the Buyer advises of satisfaction of the reports, failing which the seller will have the right to terminate the contract.

Using the 6th edition contacts because you want the “Building and Pest Inspection Reports” clause to be deemed satisfied may not produce the outcome you expect. This is because the reason for these changes is the introduction of a new Law (Trade Practices Amendment (Australian Consumer Law) Act No. 1 2010) requiring greater fairness to be observed in Contracts. You will see from the documents linked above that the “Building and Pest Inspection Reports” clause could be potentially considered an unfair term under the new Law.

The REIQ have published sample versions of the updated forms on their RealWorks website. RealWorks have also provided a Fact Sheet on the changes.