avoiding the pitfalls of buying property in wa
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Avoiding the Pitfalls of Buying Property
in Western Australia
PRESENTATION BY JULES LEWIN
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
OUR SERVICES
We provide a personal professional service in the areas we practice. Jules Lewin has assisted many clients in his career of over thirty one years and his advice is practical, frank and outcome based SERVICES - PROPERTY RELATED • Property Settlements - Transfer of property from
one party to another and may include parties who are unrelated - buyers and sellers / first time homebuyers related – divorce / gifting / inheritance
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
OUR SERVICES CONT …
• Complex MattersApplications to change details on Titles e.g. when someone dies / changes status Applications for new Titles / Caveats / Withdrawal of Caveats / Registration of Leases / Sherriff Sales
• Mortgages - drawing of mortgages
for loans secured by property
• Agreements – Property Related - Joint Ventures / Co Ownership / Options / Commercial Leases / Residential Leases
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
OUR SERVICES CONT …
• Wills and Probate
Drawing simple Wills / Wills with trusts
Applications for Probate / Letters of Administration
(when a party dies with no Will)
Estate planning advice on how to plan your Estate
Assistance with administering Estates
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
OUR SERVICES CONT …
• Commercial
Formation of Companies and Trusts – discretionary
and Unit Trusts
Advise on Agreements and Commercial Leases –
perusing them and making suggestions
Drafting of Commercial Agreements including but
not limited to Business Leases / Shareholder / Unit
Trust Holder Agreements / Acknowledgements of
Debt / Shareholder / Unit Holder / Partnership
Agreements
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
OUR SERVICES CONT …
• Commercial Cont …
Policies and Procedures for Businesses - for
employees to understand
Sale and Purchase of Business Agreements
Terms and Conditions of Trade and Services
General legal advice on various issues
If your matter is not listed, please enquire
Parties that may be involved in a settlementThe following are a list of the parties that may be involved in settlement. The number of parties may vary for each transaction
Purchaser’s settlement agent• Buyer’s agent• Mortgage broker• Bank – their credit department / valuation
department / documentation / examinations settlement
• Credit department• Valuer• Documentation
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Parties that may be involved in a settlement cont …
• Examinations • Settlements• Outside clerk• Insurance company • White ant inspection / Building inspector• Pool company to check swimming pool• Vendor’s settlement agent / Vendor
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Vendor’s settlement agent
• Real estate agent
• Vendor’s bank – their credit department /
valuation department / documentation /
examinations settlement
• Shire or organisation that may have a caveat or
memorial
• Discharges department of vendor’s bank
Parties that may be involved in a settlement cont …
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Parties that may be involved in a settlement cont …
• Credit department
• Examinations department
• Settlements department
• Outside clerk - if settlement is at another place
• Purchaser’s settlement agent
• Purchaser
• Shire – Water Corporation – Office of State Revenue –
Landgate
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Problems with the number of parties
• With so many parties involved in transactions if a
matter is not co-ordinated or followed up settlement
may be delayed
• We need to anticipate e.g. if finance approval is to
be late need to obtain an extension for approval and
settlement date
• Not returning phone calls
• Lack of communication between parties
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
• Inexperienced staff handling your matter at bank or
settlement agency
• Delays in obtaining reports e.g. white ants etc.
• Need to obtain independent legal advice by
purchaser
• We work with people to ensure settlement occurs
not with attitude like many
Problems with the number of parties cont …
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Our Solutions
• At Charthill Legal we deal with legal problems that
may resolve disputes
• We are proactive and anticipate issues and do not
leave them to chance
• All communications are recorded and up to date
• Attention to detail is part of our work ethic
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Our Solutions cont …
• We use technology to stay in touch with you, in the way you want us to, phone, fax, email or sms
• We treat our clients with respect, are not rude and respond to queries as soon as practically possible
• You can follow us on Facebook, Twitter and our website
• Visit our website for up to date information and support
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Suggestions to avoid pitfalls
• Advise us before you buy or sell so we can follow up with the agent to get a copy of the contract
• Choose your team carefully e.g. Settlement Agent, Broker, Bank
• Parties to give reports remember EXPERIENCE COUNTS and give them sufficient time
• Choose a realistic settlement date
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Suggestions to avoid pitfalls cont …
• Avoid ChristmasEaster End of Financial Year - if you can
• If Tiles are to issue then make settlement date 21 or 28 days after issue of Titles
• Your bank will never be ready and you may be penalised
• Get a pre approved Loan so only a valuation needs to be done
• Understand the Joint Forms and Conditions, this will detail
your rights, duties and obligations and form part of the
contract once signed there is no going back
• Ensure you have sufficient funds to complete the
settlement - speak to your bank or broker
Suggestions to avoid pitfalls cont …
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Suggestions to avoid pitfalls cont …
• Get an assurance from the agent
(who will get it from the vendor)
that the pool fence, spa, RCD switches
and smoke alarms are compliant
with current regulations and that
there are no illegal structures
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
• Check your details are correct on all the documents and
return them promptly to your bank and settlement agent
• Get the name of the person at the bank who you hand
your discharge to and a copy of your discharge
• Ensure your bank or broker is made aware of the
settlement date and they are ready to settle otherwise
you are the party to the contract not them and you will
be liable for penalties if settlement is late
Suggestions to avoid pitfalls cont …
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Problems that can cause delays
• The agent delays in sending the contract to us
• The mortgage broker delays in submitting document
to the bank
• The client delays in furnishing
details required by the broker,
bank or settlement agent
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Problems that can cause delays cont …
• Bank delays in granting finance
• Incorrect parties on contract may require additional
names as per Certificate of Title
• The bank loses documentation
• Documents not signed or witnessed correctly
• No settlement date on contract
• Contract not completed properly
• Failure to advise your settlement agent you will be away at the time of settlement inability to sign documents
• Purchaser has insufficient funds to settle
Problems that can cause delays cont …
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
• There is a caveat on the
property which needs to be uplifted
• Pre settlement Inspection,
problems need to be resolved
• The seller owes more on the
mortgage than the purchase price
Problems that can cause delays cont …
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Buyer
• Transfer Duty
• Stamp Duty
• Portion of Rates – from settlement date to 30th June next
year
• Insurance as detailed
• Mortgage and Settlement Costs
Costs – Transfer of Ownership
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
Costs – Transfer of Ownership cont …
• Registration Fee to Landgate
• EAS – advice to Shire, Water Authorities and State
Revenue about the purchase of the property
• Moving Costs
• Dispersements – Settlement agents out of pocket
expenses
• I like the house sufficiently to purchase it
• I can afford it
• It is in the right location
• I can trust my Agent, Seller, Bank
• I can afford the costs of transfer and purchase
• I understand the purchaser/seller process completely
and have read the joint forms
Golden Rules of Home Ownership
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
• I should look after my house in order to resell for a
profit
• I should pay my mortgage
• I should pay my rates/taxes/insurances
• I should consider my neighbours and community
• We will see you before you sign the contract at no
extra cost to ensure the correct terms are inserted
Golden Rules of Home Ownership Cont …
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
QUESTIONS?
Remember to follow us on
Our website
to be kept up to date on trends
and changes in the property market
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
• The information in this PowerPoint is general and you should not rely on it
• You should conduct your own investigations about a particular matter or seek professional advice
• No liability will be accepted for loss or damages or injury as a result of you using any information
Disclaimer
Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428