Thanks to the R.E.I.W.A. in depth analysis...
‘Business as usual’ budget fails to reinvigorate property market.
REIWA welcomes the WA Government’s decision not to increase property taxes, but is disappointed in the distinct lack of leadership on display in the 2018-19 State Budget, with no new initiatives included to address housing affordability or reinvigorate the property sector.
REIWA President Hayden Groves said while it was pleasing there were no increases to property taxes, this year’s budget was a mundane budget for the property market.
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.
REIWA are updating their 2011 Standard General Conditions that accompany their Offer and Acceptance Contracts. As of 13/2/18 we are advised the New 2018 Joint Form of General Conditions will be made available from their REIWA office or by license from PrintForce.
REIWA are offering courses for the Real Estate industry to update themselves on the changes; Understand how the changes to JFGC will impact the following:
AICWA are offering an update to industry here;
JFGC’s Info Session
An Evening With Matthew Ellis
With the anticipated amendments to the Joint Form of General Conditions, AICWA have teamed with our very special sponsor and respected lawyer Mr Matthew Ellis – Director MGB Legal.
Matthew will discuss the relevant changes and how they apply to your clients and to you.
Date: 20th February, arrive 6pm, start 6:30 finish 8:30pm (included is a 30min Q&A)
Where: Technology Park - 2 Brodie-Hall Dr, Bentley
Cost: FREE for AICWA members and staff. Please register: HERE or email us at firstname.lastname@example.org
Non-member cost $50 per person. Registration via the AICWA website HERE
Light refreshments available on arrival.
'Talking property', link to previous POD cast including 6/8/16 talking about Title Insurance :)
#A1Conveyancing #SettlementsWA #SettlementAgent
Listed, Sold or buying a property market value of $2 mil. or over?-ATO clearance certificate is required!
Contracts dated 1 July 16 on wards, will have the new requirements on ALL transactions with market value of $2 million or over.
Unless the Seller provides an Australian Taxation Office (ATO) 'clearance certificate' for each registered proprietors name (matched to the title) to the buyer 2 business days prior to settlement (-timing subject to REIWA special condition).
Then the Buyer must withhold 10% of the Purchase price (more specifically the 'First element of the cost base'-Capital Gains Tax defined term) from the Seller and apply for an ATO Payment Reference Number (PRN) then remit that payment to the ATO once settled, and before Title registration.
Even if Selling or Buying a percentage, where a total property value (aggregated/extrapolated) $2 million or more would likely impact that transaction.
Designed to catch Tax evaders, the new law places liability on the Buyers to withhold payment from the Seller unless they are given a clearance certificate, or exempted by approved variation.
As ignorance of the law is no excuse, please be aware, rewards for referrral to Settlement Agents under the Act is a "Big No No" with upto $20k penalty, thanks REIWA for sharing this...
Please remember it is an offence to take any rewards from a settlement agent for sending business their way.
This "Contract for Sale of Land or Strata Title by Offer and Acceptance" form is owned by the Real Estate Institute of Western Australia (REIWA). REIWA used to supply the form to major newsagents like Newspower. Some might still have stock but if experiencing difficulty try the REIWA Stationery Shop (based in Subiaco) directly. The number is +61 8 9380 8222 or email your order with Credit card details and return postal address on "stationery" at "reiwa.com.au"
Bear in mind that you will also require the Joint Form of General Conditions for each party of the contract. (ie seller & buyer) If you are transacting on a strata titled lot you also need the "form 29" and schedules along with the "form 28" disclosure form which they can also supply.
If you are selling or would like additional information about a property, the government department of commerce recommend to try the Landgate Property Interest Report (P.I.R) from (http://goo.gl/DwyDXA)
Contact A1 Conveyancing to discuss your title transaction needs.
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