avoiding the pitfalls of buying property in wa

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


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



• 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



• 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



• 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


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


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




• 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


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


• 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 …


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


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


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



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




• 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


• 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



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



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



• 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



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



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


• 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 …


QUESTIONS?

Remember to follow us on

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Our website

to be kept up to date on trends

and changes in the property market


• 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
