"Buyers can generally move into the property once settlement has taken place, unless the O̶ ̶&̶ ̶A̶ ̶o̶t̶h̶e̶r̶w̶i̶s̶e̶ ̶s̶p̶e̶c̶i̶f̶i̶e̶s̶ ̶o̶r̶ ̶t̶h̶e̶ ̶h̶o̶m̶e̶ ̶i̶s̶ ̶t̶h̶e̶ ̶s̶e̶l̶l̶e̶r̶’̶s̶ ̶r̶e̶s̶i̶d̶e̶n̶c̶e̶ Seller occupied as their 'principal place of residence' immediately prior to Settlement. If this is the case the seller may remain until noon on the day after settlement.
However, buyers sometimes reach agreement with the seller to move into the property earlier than the settlement date. Buyers who are considering taking possession of a property prior to settlement may be asked to sign a form which states that the buyer agrees to take the property ‘as is’, and a statement that the buyer makes their offer unconditional.
Consequently, the seller may not be required to fulfil any special conditions which have been inserted into the O & A.
Both the seller and the buyer should seek legal advice about the potential problems that could arise from prior possession and consider the risks carefully."
Is a Hard Wired Smoke Alarm Enough?
We have written on the important topic of smoke alarms on numerous times in the past and it has always generated considerable interest. Key issues have included:
What is the Current Issue with Smoke Alarms?
Hard wired smoke alarms were required to be installed on all new properties from 1 October 1997. READ MORE HERE.
Source:13th July 2018 AICWA e-Newsletter
Some highlighted changes to the 2018 version of Joint Form of General Conditions (JFGC), might mean that you could see some differences to the 2011 JFGC.
Please note, we are not lawyers and are merely relaying some discussions as generically covered in an industry forum.
The biggest concern was the 'Lawyers picnic' referenced as clause 9.3, where opposing lawyers could argue just about any outcome they desired, for a breach of warranty.
Service by email still needed to be 'signed' and in writing, so as an attachment to an email is most likely outcome.
The Buyers 'Right to inspect' was arguably removed, unless there was a Seller obligation or condition of the contract, then that additionally included a right to re-inspect, to check if Seller has rectified an identified issue, under the contract.
Early Possession remained the same if under one (1) month. However the REIWA JFGC-18 states that Parties must comply with the Residential Tenancy Act (RTA) if Possession was granted for period of one (1) month or more.
Which differs from the RTA which specifies a minimum of three (3) months.
Immanent Settlement; Have you discovered an issue, like damage or some defect that IS covered under your contract at the final inspection?
After recommending Legal Advice (since we are not lawyers). Often the quickest & cleanest way forward with a pending settlement is to arrange a “Payment in lieu” variation.
Something along the lines of;
With autumn here, now is the perfect time to make improvements around your home, and get your property in tiptop shape for winter. Here are some ideas for the to-do list.
When a potential investor or buyer hears the term “mortgagee sale” or “repossession” you can often see the dollar signs in their eyes. There is a common view that mortgagee sales come with a lower than market value price. This can be correct in some cases, however thorough due diligence should be conducted before purchasing this type of property. Below we will look into the usual process in WA for mortgagee sales, as well as the pros and cons of purchasing a mortgagee in possession property.
How do mortgagee sales work?
Leaks can be extremely wasteful and costly. Regularly checking taps, pipes and fittings around your property could save precious water and precious money!
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
This article in New Zealand seems to indicate a growing trend... So might be worth considering for your lease between tenants and part of your contractual purchase conditions...
Keep me updated, join us here...