Tag Archives: building

Living in a Strata Scheme

Strata properties – like apartment units, some townhouses, or residential flats – are immensely popular especially in places like Sydney, where there’s a shortage of space. Living in a property that is part of a Strata Scheme is a little bit different from living in a free-standing house, and from time to time we get questions about what living in a Strata Scheme means.

To start off with, while you own your unit or apartment, ownership of the building itself is shared between the other owners in the building. Collectively, all of the owners form the “Owners corporation”, which has responsibility for the maintenance and upkeep of the building and the common property to the building (such as gardens, parking areas, stairwells, the roof, and lifts).

The Owners Corporation makes decisions about things like employing a Strata Manager, about budgeting for repairs and maintenance, paying council rates and fees, insurances, paying utility bills, collecting the maintenance costs from the other owners, or for setting down rules to keep the peace (such as pets or noise rules), or rules to increase (or maintain) the value of the property (such as graffiti, hanging laundry, or things like that).

While it is not compulsory for you to attend owners corporation meetings, it’s commonly thought that a strata scheme operates better if everyone participates.This co-operative way of managing the property however may not be for everyone and we are aware that sometimes things get heated between members of

the owners corporation.

If you are interested in purchasing Strata property you can order for a pre-purchase strata inspection report, that allows you to have a look at the records of the owners corporation. Once you have that information you can make a better decision about moving forward with your purchase.

 

 

Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.

Kenneth Ti

Kenneth Ti
Property Lawyer

This website is supported by Phang Legal, an incorporated legal practice based in Parramatta CBD providing conveyancing services across Sydney and New South Wales. Kenneth Ti is an associate solicitor with Phang Legal.

Lawyers and Licenced Conveyancers

Would you use a lawyer or a licenced conveyancer?

Many of the older generation of lawyers complain about the introduction of licenced conveyancers to assist people with their property transactions. Obviously, they remember the times (ie,’ the good ole days’) when the conveyancing services market was only for lawyers. It was also the time when legal fees for conveyancing services were according to a scale rather than subject to market forces as they are today.

For me, I can’t provide any personal comparisons. Even though I’ve been in the legal industry since the late 1990s, the changes to the conveyancing services market took place before my time. For me, licenced conveyancers are an accepted part of the market in which I operate. I know a fair few licenced conveyancers and I think they have their place along side lawyers and offer clients a valuable alternative to using a lawyer for buying or selling property.

Without overly stereotyping the market, some clients only want conveyancing services and don’t want other information/advice regarding other areas of law, even if it’s relates in some way to their property transaction (yes, this is true). Sometimes that’s because clients make an informed choice but sometimes it’s because they’re not fully aware of how all areas of law and life are interrelated. For clients who can and do make an informed decision, then of course this is in their best interest. Those clients need and want a licenced conveyancer – and that’s it. There’s nothing wrong with that, right? A competent professional is a competent professional regardless of whether they’re a lawyer or a licenced conveyancer. But for the purpose of the clients’ property transactions a licenced conveyancer might not only be suitable but might also be the most appropriate professional.

HOWEVER, if clients only ask after licenced conveyancers because of a misunderstanding or lack of understanding of what a lawyer does or how their property transaction might give rise to other issues in other areas of law, that’s a real shame! I think there’s an opportunity and an important responsibility to educate and increase awareness about the differences between lawyers and licenced conveyancers and the different types of services that they provide.

For example, while the buying or selling of a property may be the key objective, many clients forget that this could have further reaching consequences on other areas in their lives, such as their estate and their estate planning or may their personal liabilities, arising from such things as taxation or duties. Couples who buy or sell property may also find themselves in more complex situations arising from relationship issues, which of course are rarely considered in the midst of their property transaction, but arise at a time when it is most convenient only to be compounded by not having considered it in the first place. A licenced conveyancer may assist them with their property transaction, but then who provides the right advice regarding how that property transaction affects other parts of their lives? Of course I’m not saying that in providing conveyancing services every lawyer takes a more holistic approach and provides advice to a clients that is beyond the property transaction. But this is what I do.

I think one of the biggest disservice a lawyer could provide would be to not advice their client about certain issues that the lawyer knows affects or will affect their client just because it was outside of the scope of their current retainer. The law is much more than just the immediate here and now.

A pessimistic outlook from an optimistic lawyer could save you a lot of cost and heartache in the future.

Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.

Ern Phang

Ern Phang
Director - Property Lawyer

This website is supported by Phang Legal, an incorporated legal practice based in Parramatta CBD providing conveyancing services across Sydney and New South Wales. is the solicitor director of Phang Legal.

What is an off-the-plan purchase?

Some property purchases are “off-the-plan” purchases. These purchases are different than a standard purchase in a few ways.

Generally speaking however, an “off-the-plan” purchase means purchasing land or an apartment that does not currently exist. The idea is that the vendor – typically a developer – intends to build a number of houses or apartments on the property and then to subdivide the land, allowing the vendor to sell those houses or apartments to prospective purchasers.

An “off-the-plan” purchase can be thought of as a “promise” that in the future, a separate and distinct parcel of land will be available to be transferred to the purchaser. There are no inspections that can be made and unfortunately the display home does not necessarily show what the final product would look like.

A typical “off-the-plan” contract will include a draft plan by the vendor showing how the subdivision would look like. It would also include a “sunset date”, or a time limit, of when the vendor must complete the works and the subdivision. This time limit is typically within 15 months to 3 years. The contract would also contain clauses that say that if these conditions are not met the purchasers can cancel the contract and recover any deposits paid.

Because of the nature of an”off-the-plan” order viagra online purchase, it is difficult to predict when settlement is to occur. Due to this there is some level of uncertainty – at least when it comes to timing – when it comes to “off-the-plan” purchase.

Every contract is different, however a typical “off-the-plan” contract will contain provisions in relation to any changes in the plans, or where building work is part of the contract, a defects warranty period.

In the end, due to the differences between an “off-the-plan” purchase and a standard contract, you do need to consider whether an “off-the-plan” purchase is suitable for you.

If you have any questions, please don’t hesitate to contact us or drop us an e-mail through the quick enquiry form!

 

Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.

Kenneth Ti

Kenneth Ti
Property Lawyer

This website is supported by Phang Legal, an incorporated legal practice based in Parramatta CBD providing conveyancing services across Sydney and New South Wales. Kenneth Ti is an associate solicitor with Phang Legal.

From First Home Owner Grant to First Home Owner (New Homes) Grant

In July we wrote about a number of important changes in the property market. One of these changes are changes to the First Home Owner Grant.

From 1 October 2012 the First Home Owner Grant will be replaced with the First Home Owner Grant (New Homes), and the grant will be increased from $7,000 to $15,000. This applies to first home owners who purchase or build a new home. The date of the contract must be on or after 1 October 2012.

There are additional changes to the

First Home Owner Grant – for one, From 1 October 2012, the cap will be reduced from $835,000 to $650,000. This means that any first home buyers purchasing or building a new home will not be eligible for the First Home Owner Grant (New Homes) if the value of the contract is more than $650,000.

These changes will remain in place until 31 December 2013 – after that date, the First Home Owner Grant (New Homes) will be reduced from $15,000 to $10,000.

If you are eligible for the First Home Owner Grant (New Homes), you cannot apply for the NSW New Home Grant Scheme of $5,000.

This change is welcome for first home purchasers who want to purchase new property – however it is our experience that first home purchasers typically try to save some money by purchasing pre-existing property.

It is difficult to anticipate how these changes will affect the property market – fortunately however, we assist the full spectrum of the market, from first home purchasers to established property investors.

Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.

Kenneth Ti

Kenneth Ti
Property Lawyer

This website is supported by Phang Legal, an incorporated legal practice based in Parramatta CBD providing conveyancing services across Sydney and New South Wales. Kenneth Ti is an associate solicitor with Phang Legal.

Important Changes from 1 July 2012

So you would have probably all heard about the carbon tax being introduced on 1 July 2012. It is the political hot topic and has been reported on in every media outlet at every opportunity, and while the carbon tax may have stolen all of the attention, there have also been some significant changes in the property market around 30 June 2012 and 1 July 2012. Here are some examples.

Starting

From 1 July 2012, the New South Wales government introduced a $5000 grant to anyone buying new homes, whether off the plan or newly built, with a value up to $650,000 or to anyone buying vacant land valued up to $450,000 with the intention that it is to build a new home.

Ending

The NSW Home Builders Bonus was introduced to stimulate the construction of new homes in New South Wales by offering exemptions and concessions on new homes, off the plan purchases, and vacant land. There was a full concession on stamp duty where the building work had not commenced, and a partial concession of 25% where building work had commenced. The NSW Home Builders Bonus ended on 30 June 2012.

The future

The First Home Owner Grant as we know it (currently $7,000) is coming to an end. From 1 October 2012, the grant will only apply to new homes but increases to $15,000. The cap also reduces from $835,000 to $650,000.

From 1 January 2014, the First Home Owner Grant (New Homes) will reduce from $15,000 to $10,000.

These changes follow the already implemented change to the stamp duty exemption and concession when the First Home Plus Scheme was replaced by the First Home New Home Scheme on 1 January 2012.

What does this mean?

In the past, we have witnessed the trends and experienced the flow-on effect in terms of the number of property transactions due to announced changes to stamp duty and first home owner benefits.

There have been times when those announcements have results in significant changes in the market. For example, when the First Home Owner Grant of $21,000, first home buyers literally flooded the market with unrealistic expectations and ridiculous offers, many offering beyond their capacity and much higher than advertised asking prices just so that they could be the successful buyer (please note that at the time interest rates were also at an all time low).

There have been other times when the effect has been less dramatic, but still noticeable – like when the First Home Plus Scheme came to an end on 31 December 2011 we also experienced an increase in first home buyers hoping to take advantage of the stamp duty exemptions before it ended.

No doubt, the announced end to the First Home Owner Grant on 30 September 2012 will encourage some first home buyers to take action rather than wait – but with any change, there are always going to be perceived winners and perceived losers.

First home buyers entering or leaving the market because of the various benefits also influences whether investors enter or leave the market. Maybe for an investor, waiting until after 1 October 2012 means there are less first home buyers to contend with or compete against. In any case, only time will tell.

Fortunately, we assist first home buyers and home buyers alike, as well as property investors and so from our perspective we see a full spectrum of how changes to law and policy influence different parts of the property market at different times. Our insight is your benefit, so if you are in the property market regardless of whether you are buying or you are selling, we should talk and hopefully our experience proves to be valuable to you in your property dealings.

Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.

Ern Phang

Ern Phang
Director - Property Lawyer

This website is supported by Phang Legal, an incorporated legal practice based in Parramatta CBD providing conveyancing services across Sydney and New South Wales. is the solicitor director of Phang Legal.

Understanding Conveyancing – Cooling Off Period [Video]

Welcome to the first post of the Understanding Conveyancing Video Series. In this post we will have a brief look at the Cooling Off Period in a Contract for Sale of Land, and what it means.

If you buy residential property in New South Wales, you will be generally covered by a cooling off period, which starts on the date of exchange and expires at 5pm on the 5th business day after exchange.

During this period you may exercise a right to rescind, to get out of the contract, for any reason whatsoever. If you do this during the cooling off period you will forfeit 0.25% of the purchase price – but that is better than losing your deposit or more.

Some people negotiate on the terms of the contract during this period. Most people use the cooling off period to order pre-purchase searches such as strata inspection reports or pest and building inspections. We will cover this in a different post.

Cooling off periods do not apply on residential property purchased at auction, or where you have waived this period by providing the vendor with a certificate from your lawyer or solicitor.

Look out for our other articles on conveyancing and

property transaction in New South Wales. We are conveyancing lawyers in Parramatta providing fixed fee conveyancing services and updates in property law.

Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.

Kenneth Ti

Kenneth Ti
Property Lawyer

This website is supported by Phang Legal, an incorporated legal practice based in Parramatta CBD providing conveyancing services across Sydney and New South Wales. Kenneth Ti is an associate solicitor with Phang Legal.

What is Land Tax?

It is common for vendors to specify that Land Tax is adjustable on the settlement of the transaction, especially where the property was used as an investment property by the vendor.

Land Tax is a tax levied on all owners of land in New South Wales. Land Tax is based on the average value of the land over the last 2 years, and the tax is calculated and levied on midnight, 31 December, every year. Land Tax is calculated on the combined value of all the taxable land you own. This is defined as the combined value of the land less the “threshold amount”. If the combined value of all land you own does not exceed the “threshold amount”, then no land tax is payable. In 2012 the threshold amount is $396,000.

Generally, your principal place of residence is exempt from Land Tax. You are likely liable to pay land tax if you own investment property,

commercial or industrial units, or vacant land.

Both the vendors and the purchasers must ensure that Land Taxis paid before settlement.

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Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.

Kenneth Ti

Kenneth Ti
Property Lawyer

This website is supported by Phang Legal, an incorporated legal practice based in Parramatta CBD providing conveyancing services across Sydney and New South Wales. Kenneth Ti is an associate solicitor with Phang Legal.