A review of the latest licensing information for WA settlement agents reveals that in the last 12 months there has been a slight decline over most categories. Given market conditions, natural attrition as well as unprecedented change it’s not surprising the total number of licences held in WA is down from 574 in 2017 to 554 in 2018.
You might be exempt from the electrical and smoke alarm safety requirements...
DMIRS Bulletin #78
Smoke alarms in dwellings proposed for demolition
Western Australia’s Building Regulations 2012 require owners of residential dwellings to have compliant smoke alarms installed prior to the sale, transfer of ownership, rent or hire of the dwelling.
Changes to the Regulations that come into effect on 22 January 2018 provide an exemption for owners who are transferring ownership to a person intending to demolish the dwelling.
This means the current owner of a dwelling that is subject to transfer of ownership may choose not to install smoke alarms if the new owner has provided a declaration of intended demolition to the current owner before the transfer of ownership.
Bulletin can be view HERE
What you need to know:
In what is suspected to be a “man in the middle scam”, funds were unwittingly deposited by a purchaser into an east coast bank account in the lead up to a settlement and then transferred by the scammers to an overseas account resulting in a significant loss of $557,000.
Typically, this type of scam will occur when the contents of person’s private emails are accessed and details of future financial transactions are seized upon by scammers. Victims will be contacted by what they believe to be their agent via a genuine email address when in fact it is the scammer who has assumed the identity of a recipient requesting the transfer.
Scammers are attracted to targeting property professionals and their clients due to the potential for high yield lucrative opportunities.
On 1 July 2017, the proposed changes to the Foreign Resident Capital Gains Withholding (FRCGW) rate and threshold will take effect.
These changes will apply to contracts entered into on, or after 1 July 2017 for real property disposals where the contract price is $750,000 and above. The FRCGW tax rate will also change from the existing rate of 10% to 12.5%.
The existing $2 million threshold and 10% rate will still apply for any contracts entered into before 1 July 2017 even if they are not due to settle until after 1 July 2017.
The change to the threshold from $2 million to $750,000 will result in many more properties requiring a clearance certificate for exemption of the withholding. The Australian Taxation Office (ATO) can only grant clearance certificates to a seller who is an Australian resident.
Developers take heed. Update to changes to the Sale of Land Act- means some extra protection for buyers, where property is not yet owned by the developer.
Update to e-Bulletin Issue #66
On 3 April 2017, the Sale of Land Amendment Act 2016 (the Act) came into effect in Western Australia. The legislation introduces greater protections for consumers when signing sales contracts for land that is not yet owned by the developer.
The AICWA will this weekend kick off its summer radio advertising campaign on Harvey Deegan’s “talking property” on 6PR 882. Those familiar with the show will know it’s one of the most popular programs on property. REIWA, Landgate and a host of property experts including our very own John Clarey regularly take to the airwaves to answer questions.
Hear the ad campaign HERE
The Radio ad is aimed at driving listeners (and their family & friends) to use our “Find a Conveyancer” search engine. We want to drive referrals to our Members.
Over the coming weeks we will monitor web visits to determine the effectiveness of the campaign. In 2017 we hope to announce some awesome news on how we will expand on our ability to drive referrals to you. As an AICWA member we owe it to you!
Are you aware that your build might have extra costs to meet the requirements of Bushfire Attack Level (BAL) assessment/report being obtained and being below a certain level to ensure building is less prone to bushfire loss.
These requirements monitored by the local council could add thousands of dollars to your build costs.
The National Electrical and Communications Association (NECA) have previously published information regarding the issuing of electrical safety certificates.
NECA has received confirmation via email from the Department of Commerce stating the following:
“Safety certificates are not to be issued unless it is installation work as described in the Electrical (licensing) regulations 1991 section 52B. Going to a property and ensuring correct operation and that the premises complies to the legislation is not installation work. The form is an official certificate and cannot be altered or details entered that do not relate to installation work that you the contractor have performed. We suggest in your circumstance that a letter which must have a company letter head should be sent when doing compliance inspections. This letter can outline whatever requirements are necessary including the amount of RCD’s number of Smoke detectors were they all operational and installed as per the Australian standards, were any faults or concerns found that may need further investigations or rectifications. The letter can include or exclude as much as the client requirements are you can add similar ticks and flick sections like the safety certificate but under no circumstances should a safety certificate be issued unless installation work has been done “.
AICWA is currently waiting to hear back from NECA regarding the template recommend to their members for producing an Electrical Condition Report.
Source: AICWA newsletter 4 October 2016
Electrical Condition Report - Update source:25 October 2016 AICWA Newsletter
The National Electrical and Communications Association (NECA) have previously published information regarding the issuing of electrical safety certificates and Electrical Condition Report. In their communications to their members they have also provided an example of an “Electrical Condition Report”. View a Report HERE
As of 3rd February 2016, the regulation of Scaled Settlement Agents' capped fee has ceased. Settlement Agents are now able to charge their worth for their services in executing the transaction. The new fee disclosure rule in found in the rule 6B & unforeseen significant change for scope of work under 6C of the Settlement Agents Code of Conduct & Act.
Removing the 'Maximum Scale' and de-regulating fees has allowed Settlement Agents greater flexibility to cater to the differing needs of their particular clientèle and complexity of work involved.
Pursuant to the the new rule, a Settlement Agent must provide their client with a written costs disclosure setting out the maximum amount they will be charging for their services, before the client signs the Form 1 Appointment to Act.
Some agencies may differ by supplying you with a low cost fee, but refer or attach additional costs disclosure of their 'add-on' or 'additional charges' inside a disclosure statement -similar to that of a lender where they might detail their rights to charge the consumer fees that could exceed the old 'Scale'.
Things to be careful of might include;
What are the smoke alarm laws?
The Building Regulations 2012 (the Regulations) in Western Australia require owners of dwellings to
have compliant smoke alarms installed prior to sale, rent or hire. To comply with the Regulations,
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