Avoiding the pitfalls of buying property in wa

Avoiding the Pitfalls
of Buying Property
in Western Australia

PRESENTATION BY JULES LEWIN

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 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 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 settlement

The 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


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 bank


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


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


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 many


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 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 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


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 Costs


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


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 forms


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 inserted


QUESTIONS?

Remember to follow us on
Facebook
Twitter
LinkedIn
Our website
to be kept up to date on trends
and changes in the property market


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 information


Avoiding the pitfalls of buying property in wa

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