• New laws introduced on 30 November 2016 allow for the forced sale of units in an apartment

    The strata management industry is in for a significant shake up with the “once-in-a-generation” changes to strata laws being introduced on November 30, 2016. The NSW Government has amended the laws regarding the management of apartment buildings allowing 75% of owners in apartment blocks will be able to sell...

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  • ATO targeting property investors

    A recent taxpayer alert [Trusts mischaracterising property development receipts as capital gains] concerning property development and the use of trusts is significant for property developers. Taxpayer Alert 2014/1, describes an arrangement whereby a trust undertakes property development activities as part of its...

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  • Chinese regulators may turn off the money flow that is funding the Australian real estate bubble

    A Chinese Government crackdown on the recently exposed activities of the Bank of China's money laundering efforts in Australia will have repercussions on the sustainability of high property values in Sydney and Melbourne. China’s state broadcaster CCTV has launched an attack on one of the country’s most...

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  • Changing A SMSF Trustee to a Corporate Trustee

    Benefits of a Corporate Trustee 1. Changing Members If an SMSF is set up with a corporate trustee structure you can add a member (e.g. a spouse or child) or remove a member (e.g. if a member dies or can no longer act as trustee) with much less hassle than an individual trustee structure. If there is a ch...

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  • Our Legal Fees & Services

    At GMH Legal we believe that client relationships matter more than time sheets which is why we offer a range of alternative fee arrangements to best suit your needs. Our focus is on client service and establishing mutually rewarding relationships with our clients. We think that billing by the hour does not ...

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  • Homebuyer’s Guide to Conveyancing

    Buying your first home can be a confusing process, particularly when it comes to conveyancing. Taking your first step on to the property ladder can be an exciting time. But for those who have never been involved in a property purchase, the conveyancing process can often seem hard to understand. What i...

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Contact Us


KOGARAH OFFICE
Suite 309 – 310, Level 3
13A Montgomery Street
KOGARAH NSW 2217


SYDNEY CITY OFFICE
Ground Floor
54 Martin Place
SYDNEY NSW 2000


Email: solicitors@gmhlegal.com
Phone: (02) 9587 0458
Facsimile: (02) 9587 2936


FREQUENTLY ASKED QUESTIONS


Buying a property

  • What are the costs of buying a property?
  • How many homes should I inspect when looking for a property?
  • How do I make an offer?
  • What is the cooling off period in a contract?
  • When do I pay stamp duty on a property purchase and how much is it?
  • When do I pay stamp duty on a property purchase and how much is it?
  • When do I pay land tax on a property and how much is it?

Selling a property

  • What are the costs of selling a property?
  • What is an exclusive listing?
  • Do I need to redecorate before I put my property on the market?
  • Do I need to be present for viewings?
  • Can I sell my property while it is currently leased?
  • Should I take a lower offer from a cash buyer?
  • If I accept an offer, how long with it take for the transaction to be completed?
  • Do I have to pay Capital Gains Tax on the property?

Strata scheme

  • I am a tenant – do I have to go to any meetings?
  • I am an owner – what meetings do I have to go to?
  • Can I attend an executive committee meeting?
  • When can I use a proxy to have my say during an executive committee meeting?
  • What if I do not want to be part of the Owner’s Corporation – can I manage my unit myself?
  • The Owners Corporation keeps putting up the levies – What can I do?
  • What happens if I refuse to pay my levies?
  • Can I do my own repairs to common property?
  • Do I need the Owners Corporation’s permission to get a dog?

BUYING PROPERTY: WHAT ARE THE COSTS OF BUYING A PROPERTY?

There are many costs and expenses involved in any real estate transaction.

Fees will vary between Solicitors and conveyancers as there is no official charge for conveyancing. However it is important to note that in addition to paying for the purchase price of the property and legal service fees, you will also be charged for disbursements made ahead of the finalization of the transaction.

Generally, disbursements can include:

  • Certificate fees charges by authorities responsible for water, electricity, roads, schools etc.
  • Photocopying
  • Registration of the mortgage (if any)

Costs other than legal fees and disbursements will usually include:

  • Building and pest inspections
  • Survey report
  • Establishment of mortgage
  • Home building insurance
  • Valuation fees
  • Mortgage insurance
  • Stamp duty and mortgage duty
  • Council and water rates

BUYING PROPERTY: HOW MANY HOMES SHOULD I INSPECT WHEN LOOKING FOR A PROPERTY?

We recommend looking at enough properties to gain a comprehensive understanding of the market place.
This will provide you with the required knowledge to work out if the property you are interested in represents value for money, while also helping you determine which location appeals to you the most.

BUYING PROPERTY: HOW DO I MAKE AN OFFER?

When an offer is made for the purchase of a property, it should be made on a formal contract document. A verbal offer is not legally binding and should not be relied upon by either party.

When the offer is put to the property owner (vendor), they ca either sign and agree to the price, or amend the price and return it to the buyer for further consideration. This may go back and forth until both parties are happy to finalise a sale.

BUYING PROPERTY: WHAT IS THE COOLING OFF PERIOD IN A CONTRACT?

A cooling off period is where one party – usually the buyer- is given a short amount of time after signing and exchange the contracts to decide if they definitely want to proceed.

The seller is bound to the contract and prohibited to sell the property to anyone else during the cooling off period.

BUYING PROPERTY: WHEN DO I PAY STAMP DUTY ON A PROPERTY PURCHASE AND HOW MUCH IS IT?

When you purchase land in any state of Australia, you are liable to pay stamp duty to the Government.

The duty payable is based on the value of the property. Please refer to the NSW Office of State Revenue Calculator to get an estimate of how much stamp duty you will be paying.

Stamp duty exemptions and concessions may apply in some circumstances. We recommend that you check with your Solicitor/Conveyancer to see if you are eligible.

BUYING PROPERTY: WHEN DO I PAY LAND TAX ON A PROPERTY AND HOW MUCH IS IT?

Land tax is an annual tax based on the ownership and usage of land as at 1 July of each financial year. The owner of a property as at 1 July in each year is liable to pay the land tax assessed for that financial year.

Principal residence land is exempt from land tax. No land tax is payable for that category of land. However if you intend to purchase a property for investment purposes, then that property will be subject to land tax.

SELLING PROPERTY: WHAT ARE THE COSTS OF SELLING A PROPERTY?

Fees and charges associated with selling a property can vary so it is important to be aware of all costs up front so you can take these into consideration when arranging finance.

Costs you should expect to incur include:

  • Commission and marketing expenses payable to your agent (if applicable)
  • Search costs
  • Government charges
  • Discharge of mortgage (if applicable)
  • Your proportion of rates and taxes as at the settlement date
  • Conveyancer’s or Solicitor’s fees
  • Moving costs

Please note that there is no legislation to determine what commission a real estate agent charges so they are at liberty to determine their own fees, taking into account the extent of the services provided and the complexity of the marketing campaign.

SELLING PROPERTY: WHAT IS AN EXCLUSIVE LISTING?

With an exclusive agency agreement, you give only one agent the rights to sell your property.

This may entitled the agent to be paid a commission if the property is sold during the fixed term of the agreement, even if you or another agent were responsible for the sale.

SELLING PROPERTY: DO I NEED TO REDECORATE BEFORE I PUT MY PROPERTY ON THE MARKET?

It is not essential to redecorate your property before placing it on the market.

The key is to address items that will be most important to potential buyers. We suggest addressing ‘repair or replace’ items before you invest in ‘cosmetic fixes’.

SELLING PROPERTY: DO I NEED TO BE PRESENT FOR VIEWINGS?

If your estate agent is accompanying all viewing and they have the access codes and keys for your property your presence is not required.

It is worth noting that buyers often feel more relaxed when the owner is not present.

SELLING PROPERTY: CAN I SELL MY PROPERTY WHILE IT IS CURRENTLY LEASED?

Yes, you can sell your property while it is being leased, but any potential purchaser must be told there is a current lease in place and that the property will not be sold with vacant possession.

The tenant has the right to occupy the residence until the end of the lease term, unless both parties negotiate and agree to terminate the existing agreement.

SELLING PROPERTY: SHOULD I TAKE A LOWER OFFER FROM A CASH BUYER?

The advantage of a cash buyer is that they are financially able to proceed without relying on the sale of a house to complete. This means that you will be able to move forward with your sale, and subsequent purchase, with minimal delay.

As with many of these decisions, you will need to weigh up whether you can realistically afford to accept the lower offer. Speak with your agent as they will have information on any other interest that may have been shown and be able to advise if you should hold out for other buyers.

SELLING PROPERTY: IF I ACCEPT AN OFFER, HOW LONG WILL IT TAKE FOR THE TRANSACTION TO BE COMPLETED?

On average, it takes around 8 to 12 weeks to complete following the transaction following the acceptance of the offer. During this time, the new mortgage for the property will be agreed, any searches will be carried out and the solicitors will need to be instructed.

SELLING PROPERTY: DO I HAVE TO PAY CAPITAL GAINS TAX ON THE PROPERTY?

If you are selling a property that is your main home, you will not have to pay tax on it as long as you satisfy certain conditions. However if you are selling a property that is not your main home, it is likely that you may have to pay Capital Gains Tax.

We recommend that you seek advice from your Accountant and Solicitor.

STRATA SCHEMES: I AM A TENANT – DO I HAVE TO GO TO ANY MEETINGS?

Tenants are not required to attend meetings and do not have voting rights. An owner could choose to give their tenant a proxy vote on the owner’s behalf.

STRATA SCHEMES: I AM AN OWNER – WHAT MEETINGS DO I HAVE TO GO TO?

While it is not compulsory for any lot owner to attend Owners Corporation meetings, a strata scheme operates better if those concerned take an interest in its affairs. There would usually be several meetings of the Owners Corporation a year, however the annual meeting, when levies are set for the coming year and the executive committee is elected, is the only meeting required to be held by law.

STRATA SCHEMES: CAN I ATTEND AN EXECUTIVE COMMITTEE MEETING?

You can attend the meeting if you are an owner but will need the permission of the executive committee to speak.

Please note that you will not be able to vote.

STRATA SCHEMES: WHEN CAN I USE A PROXY TO HAVE MY SAY DURING AN EXECUTIVE COMMITTEE MEETING?

A proxy is where you authorise someone else to vote on your behalf when you are unable or choose not to attend a meeting.

You will not be able to use a proxy if your name is not on the strata roll or if your levies are not paid in full.

STRATA SCHEMES: WHAT IF I DO NOT WANT TO BE PART OF THE OWNER’S CORPORATION – CAN I MANAGE MY UNIT MYSELF?

All owners are always members of the Owners Corporation. They have voting rights and obligations to pay levies and comply with by-laws. Owners cannot ‘resign’ from the Owners Corporation.

However you are free to manage your unit as you see fit. You can enter into a contract with a managing agent or caretaker to manage your unit, if you wish.

STRATA SCHEMES: THE OWNERS CORPORATION KEEPS PUTTING UP THE LEVIES. WHAT CAN I DO?

Levies are decided at general meetings and must be discussed and accepted by a vote of the owners. You can vote against the increase or put up a motion for a different levy amount if you wish.

Levies are normally only increased if there is a need to do new works or there are additional expenses. Ask why the increase is being made if you are not sure.

If you think the levies are really too high, you can lodge an application for mediation with Fair Trading to try to resolve the matter.

STRATA SCHEMES: WHAT HAPPENS IF I REFUSE TO PAY MY LEVIES?

The Owners Corporation can impose a charge of 10% simple interest for levies not paid within 1 month of their Court date. The Owners Corporation can also take debt recovery action through the Local Court.

STRATA SCHEMES: CAN I DO MY OWN REPAIRS TO COMMON PROPERTY?

Only if you have the permission of the Owners Corporation. If common property needs repair or maintenance, the Owners Corporation should undertake that work, not an individual owner.

STRATA SCHEMES: DO I NEED THE OWNERS CORPORATION’S PERMISSION TO GET A DOG?

Please check your by-laws first. Some schemes allow pets with the permission of the Owners Corporation – the executive committee can give his approval. Other schemes do not allows pets at all.

If your by-law allows for pets then make a written request to the Owners Corporation and include any information to support your request, for example, information on the type of dog, how you will look after it and so on.

Call the experienced team at GMH Legal to assist you in your matter. A free consultation with GMH Legal is an opportunity to gain deep insights into your legal situation and all of your options.

Why Choose GMH Legal?

  • Over 60 years of combined legal experience
  • Outstanding track record with a winning approach
  • First appointment is always free
  • Meet our team now.


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