Avoiding the pitfalls of buying property in wa
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  • 1. Avoiding the Pitfalls of Buying Property in Western AustraliaPRESENTATION BY JULES LEWIN
  • 2. 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 / inheritanceCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 3. OUR SERVICES CONT … • Complex Matters Applications 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 LeasesCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 4. 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 EstatesCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 5. 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 AgreementsCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 6. 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 issuesIf your matter is not listed, please enquireCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 7. Parties that may be involved in a settlementThe following are a list of the parties that may be involved insettlement. The number of parties may vary for eachtransactionPurchaser’s settlement agent• Buyer’s agent• Mortgage broker• Bank – their credit department / valuation department / documentation / examinations settlement• Credit department• Valuer• DocumentationCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 8. Parties that may be involved in a settlementcont …• Examinations• Settlements• Outside clerk• Insurance company• White ant inspection / Building inspector• Pool company to check swimming pool• Vendor’s settlement agent / VendorCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 9. Parties that may be involved in a settlement cont … 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 bankCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 10. 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
  • 11. 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 partiesCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 12. Problems with the number of parties cont … • 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 manyCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 13. 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 ethicCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 14. 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 supportCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 15. 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 dateCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 16. Suggestions to avoid pitfalls cont … • Avoid Christmas Easter 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 doneCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 17. Suggestions to avoid pitfalls cont … • 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 brokerCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 18. 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 structuresCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 19. Suggestions to avoid pitfalls cont … • 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 lateCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 20. 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 agentCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 21. 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 Charthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 22. Problems that can cause delays cont …• 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 settleCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 23. Problems that can cause delays cont … • 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 priceCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 24. Costs – Transfer of Ownership Buyer • Transfer Duty • Stamp Duty • Portion of Rates – from settlement date to 30th June next year • Insurance as detailed • Mortgage and Settlement CostsCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 25. 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 expensesCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 26. Golden Rules of Home Ownership • 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 formsCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 27. Golden Rules of Home Ownership Cont … • 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 insertedCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 28. QUESTIONS? Remember to follow us on Facebook Twitter LinkedIn Our website to be kept up to date on trends and changes in the property marketCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428
  • 29. Disclaimer • 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 informationCharthill Legal - Commercial & Property Lawyers www.charthill.com.au 0417921428