Sales Methods – Pros & Cons

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

For more detail on how Qld legislation regulates the relationship between Seller and Agent see our article below on Sellers and Agents – how the PAMD laws affect you.

The Agent – Commissions, Expenses and Agreements

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

When you list your property with an Agent, you will be asked to sign an Agency agreement with the Agent. This is a written contract and not just a ‘listing’ notice – so you need to read it carefully to make sure that you are happy with its terms.

Many clients of mine have not realised this. They can’t even remember really signing anything in particular, probably because they were so focused on the fact that they were listing their property for sale. But I have seen disputes arise between Sellers and their agents, particularly regarding commission and other payments, so you should give this agreement the importance that it is due.

Normally the Agent’s agreement will cover the following:

• The amount of commission payable –– In Qld this is normally in accordance with the scale fee set by the Qld Real Estate Institute. Some States, such as NSW, have a deregulated system which allows you to negotiate the commission below the scale fee – you should check with your particular authority.In Queensland, the scale fee is 5% on the first $18,000 of sale price and 2.5% on the balance. This fee can be negotiated down, but in practice I have rarely seen this done.Quicklaw has developed a Commission calculator based on the Qld scale fee. CLICK on the button below. You will then go to a pop up screen which contains the calculator. Simply type in the sale price of your property and press Calculate.
  

   Agent’s Commission Calculator

• When the commission is payable – The commission is normally payable once you have sold the property and actually received the sale monies. The commission is usually taken out of the deposit after settlement, with any balance of the deposit being sent to you after settlement by the Agent. If the deposit is not enough to cover the commission, then the Agent will ask you for the balance from the sale proceeds.

• Advertising and Marketing Costs – You should request the agent to give you a marketing plan that sets out the type of advertising they will conduct and the time frame for that marketing. The total cost of the marketing campaign should be included in your agreement, along with the payment terms (eg to be taken out of sale proceeds, or payable upfront, etc).

• The sales method (eg sole agency/multi list, etc) – The method of sale, along with the time frame that you are committed to the agency should be clearly stated. For a full discussion on this topic, see my section above on Sales Methods – Pros & Cons

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

Queensland and in particular South East Queensland, continue to be a growth ‘hot spot’ for property investment. The Property Occupations Act 2014 (Qld) seeks to regulate more closely property transactions in the sunshine state.

This article talks about how the law affects sellers and agents. For information on how the Act affects buyers, click here.

Selling Property

The Act regulates the seller’s relationship with the real-estate agent, requiring the agreement to be in writing in a special form and to include certain disclosures and information.

The Act recognizes 3 different types of listing:

• Open listing – under this arrangement you sign a contract with an agent but you can also list with other agents or even sell the property yourself. Commission is then only payable to the person who actually brings about the sale (if it is you, then you don’t pay commission to anyone).
• Sole Agency – a sole agency is an exclusive one (that is you cannot employ other Agents during the sole agency term). However you can still sell the property privately, without paying commission
• Exclusive Agency – this type of contract between seller and agent is the most restrictive as it entitles the Agent to commission whether or not they sell it, or you or another agent sells it during the exclusive agency term.

For more information on the pros and cons of different types of agency agreements, see our Article above Sales Methods – Pros & Cons.

Irrespective of which way you want to list, the Agent must put the agreement in writing using the prescribed Form (Form6). For all listings. This form sets out the terms of the agreement between Seller and Agent, including which listing type is selected, a warning to receive independent legal advice, the term of the agreement, and the fees involved. For more information on Agent’s commission, see our article above The Agent – Commission, Expenses and Agreements.

Failure by an Agent to comply with the above regulations means that the Agent may not be entitled to claim his/her commission.

When does a Seller have a definite Contract?

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

Introduction

The Property Occupations Act 2014, provides a cooling-off period for Buyers on all contracts for the purchase of residential property in Queensland. A Buyer can terminate the contract within a period of 5 working days after the cooling off period commences.

NOTE: The cooling off period does not apply to AUCTION sales of residential property. However if the property is passed in at auction, and the buyer and seller negotiate a contract afterwards, then the cooling off period will apply.

When does the Cooling off period start?

The Cooling Off period starts from the date that the Contract becomes ‘binding on the Buyer’. This date may not be noted on the Contract. The Legal date is actually the date that all Buyers receive a physical copy of the Contract (which has been signed by the Buyer and Seller). If that day is a weekend or public holiday, the cooling off period starts on the next business day. It ends at 5:00 pm on the fifth business day after that.

It is a good idea to keep evidence of when the cooling off period starts. For example, the seller or their Agent could deliver the contract personally to the Buyer and ask for a notice of receipt, or they could send the contract by fax and keep the fax transmission statement.

What are the Seller’s rights if the Buyer wants to terminate?

The Buyer can terminate the contract during the 5 day cooling off period by giving the Seller or their Agent a signed written notice. The Buyer can only terminate the Contract during that period, so check the start and end date to make sure they are in time.

If they are in time and they have given written notice, then they can legally terminate the Contract. As Seller, your only right then is to charge the Buyer the ‘cooling off’ penalty – which is 0.25% of the purchase price. If you would like to know what the amount could be, insert a purchase price in the calculator below.

 Cooling Off Penalty Calculator

Can the cooling off period be waived?

Yes – as a Seller you may want the Buyer to waive the cooling off period (for instance, because you have other commitments that require you to have an unconditional Contract). Or as a Buyer you may feel that by waiving your right to the cooling off period, you will get a price or other advantage in getting the property.

Strata Title – the Seller must ‘bare all’

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

When you own or want to buy a Unit or Townhouse, you need to consider the special legal nature of that type of property, that doesn’t apply to an ordinary house & land situation.

This is because a ‘strata titled’ complex consists of not just one dwelling, but many (from the normal ‘6 pack complex’ to a unit complex of 100s of units). Whether you buy into a small complex or a large one, there are certain principles that generally apply, as follows:

• You own your unit and the airspace encompassing that unitv You have an ownership share, along with all other unit holders, in the common property surrounding the unit (such as a pool, grounds, common stairwells, etc)
• There are rules which govern your use of the Unit and the common property, called Body Corporate rules
• A body corporate (comprised of a committee of owners) is responsible for the maintenance and other matters relating to the complex

Disclosure by the Seller

You will be asked by the Agent to complete a disclosure statement, which sets out the body corporate fees payable, insurance details for the complex, provides details on the Body Corporate Secretary/Manager and discloses various matters that the law feels that the Buyer should be made aware of. You can get this information from your Body Corporate Secretary, but you may have to pay a fee.

The disclosure statement must be provided to the Buyer before they sign a Contract.

The REIQ Contract for Units and Townhouses also require further disclosure on key areas relating to the complex and the body Corporate. The reasoning behind the disclosure rules is to give notice to the incoming owner (Buyer) of any problems/disputes with the Body Corporate or the unit owners. Failure to notify the Buyer of these things in the Contract can allow the Buyer to terminate after signing.

Selling a Property with Tenants in it

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

A. The procedure

If you decide to sell a property that you own which is tenanted, you can, but you need to follow certain procedures. They are listed briefly below:

• Firstly, the Seller or their Agent needs to give the tenant a Form 10 (Notice of Lessor’s Intention to Sell Premises). This form is signed by the Seller/Agent. The form includes the address of the property to be sold and a section on the sales strategy that the Seller will employ (eg open house each Saturday for 6 weeks, then an Auction on site on a specified date, etc).

  Each time the Seller/Agent wishes to show the property to a prospective Buyer, they must serve another form (Form 9 Entry Notice) on the tenant, and giving at least 24 hours notice. The Form 9 is signed by the Seller/Agent and must be given each time that they want to access the property.

  These forms are available for downloading from the Residential Tenancies site at www.rta.qld.gov.au.

• You can continue to charge the full agreed rental for the property (the law does not require you to reduce the rent whilst the property is on the market, even though it may inconvenience the tenant).

B. Selling with or without tenants?

This is a commercial decision for you to make – some Agents will say that it is much easier to sell a property without tenants in it, because the law requires the Seller/Agent to give 24 hours notice whenever they want to bring through a prospective buyer. Also, if your tenants are not tidy or co-operative, they may hinder the sale of your property.

However against these considerations you need to also weigh up the fact that whilst your tenant remains in the property, you continue to receive full rent.

Another consideration is whether a prospective Buyer is likely to want vacant possession of the property, or whether it is more valuable (return wise) as an investment property which is tenanted. For instance, an expensive house in a family area is more likely to attract owner occupiers, whilst a Unit in a large complex may be more likely to be purchased as an investment.

Buyers who want to live in the property will want vacant possession on settlement, and you need to determine BEFORE you exchange a Contract for sale of the property whether you can legally do this.

Generally the rule is:

• If your tenants are NOT on a fixed term tenancy (for instance if they have continued to rent the property beyond the period initially stated in the tenancy agreement), then you can terminate the tenancy by giving two month’s written notice (Form 12 Notice to Leave) on the tenants or 4 weeks notice once you have signed a Contract to sell. So your settlement date needs to be longer than that to make sure your tenants leave before settlement.
• If your tenant is on a fixed tenancy then the tenants can remain in the property until the tenancy period to expires. If that period still has a distance to run, then you can either make the settlement date longer (so it goes past that date) or the Buyer will have to buy the property subject to the tenancy (they will be entitled to the rental payments from the date of settlement until the tenancy period expires).

Smoke Alarms

This information has been provided by Australian Conveyancing Services and is applicable in Queensland only.

Introduction

Legislation in Queensland has made it compulsory for all homes built before July 1997 to have a compliant smoke alarm installed (smoke alarms were already a legal requirement for homes built after 1997).

Obligations on the Seller

The practical effect on the Seller is you are obliged to ensure the house or unit you are selling has compliant smoke alarms installed at the time of making the Contract or at least ensure it is done prior to settlement.

Minimum legal requirements state a smoke alarm, at least with a nine volt battery be installed on or near the ceiling on all levels of a building. Further information on the types of smoke alarms available and where to install them is available at the Queensland Fire and Rescue Service website at www.qfes.qld.gov.au.

The Seller must also advise the Buyer in writing that the compliant alarms are installed. The REIQ Contract includes this statement. You will need to tick the relevant box whether the smoke alarm is installed or not.

Alternatively you can:

1. insert a statement into the special conditions section of your Contract that “a Compliant Smoke Alarm, as required under the Fire and Rescue Service Legislation, is installed”, or
2. if the Contract is already formed insert a statement in your first letters to the Buyer or Buyer’s solicitors.

The Seller cannot contract out of their obligation to install the smoke alarms.

In the event smoke alarms are not installed or you fail to inform the purchaser one is not installed, you risk a fine of up to $375.00.

The Rights of the Buyer

Any house or unit/townhouse you contract to purchase must have compliant smoke alarms installed prior to settlement. This has to be done by the Seller at their cost.

For more information on what needs to be done visit the Queensland Fire and Rescue Service website at www.fire.qld.gov.au.

The Seller must also disclose to the Buyer that compliant alarms are installed. If you are using a REIQ Contract, the Seller will have checked the relevant section to state whether an alarm is installed in the property.

NOTE: The Seller cannot contract out of their obligation to have smoke alarm(s) installed.

If you as Buyer do not obtain this disclosure in writing you should ensure you follow this up with the Seller, as this may have serious implications for you if a smoke alarm is not installed by the settlement date. If you are not informed or alternatively informed the building does not comply with the smoke alarm regulations and you proceed to settle the Contract regardless, the legal obligation to install the appropriate smoke alarm will fall to the Purchaser upon completion of the Contract. In the event that smoke alarms are not installed you risk a fine of up to $375.00.

Buyers – how the new PAMDA laws affect you

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

Introduction

The Property Occupations Act 2014, dictates what additional forms are required when buying or selling a property in Queensland. It contains important rules regarding cooling off and for Real estate agents.

This article talks about how this law affects buyers. For information on how the Act affects sellers please see the Sellers & Agents – how the PAMDA laws affect you article under ‘Selling a Property’.

Purchasing Property

This legislation states that prior to entering into a contract that you must review and sign certain other disclosures and warning. This enables you as the Buyer to be fully aware of your rights and obligations under the contract which you are about to enter. There forms are set out below.

1) PAMDA Form 8 – Agent’s Disclosure

This form requires the Agent to disclose any relationship or benefit they have with any other party that they referred you to (for instance if they have referred you to a financier, or their own Solicitor). The form is designed to give you full disclosure of who the Agent is referring you to and why.

You will need to sign this form as Buyer.

2) PAMD Form 30c – Warning Statement (to obtain independent legal advice and valuation “discontinued”)

This Statement is now included in the REIQ Contract and  that it recommends that you do certain things before you sign the Contract.

These important matters include:

• A recommendation to seek independent legal advice
• A recommendation to get a valuation of the property you are intending to buy
• It talks about the cooling off period, when it starts and finishes.
  See our article on Cooling Off Period LINK Cooling off period – Cost of changing your mind

You should read the warning statement carefully before signing.

We recommend that you purchase the Quicklaw kit prior to entering into the a contract to purchase as the kit will take you through these forms in greater detail while informing of your rights and obligations under the contract.

Cooling off period – Cost of changing your mind

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

Introduction

Whilst it is a good idea to check things out before you sign a Contract, the law in Queensland provides you with a ‘cooling off period’ after you sign the Contract.

When does the Cooling Off Period apply?

Buyers have a cooling-off period on all contracts for the purchase of residential property in Queensland. This means that a Buyer can terminate the contract within a period of 5 working days after the cooling off period commences.

NOTE: The cooling off period does not apply to AUCTION sales of residential property. However if the property is passed in at auction, and the buyer and seller negotiate a contract afterwards, then the cooling off period will apply.

When does the Cooling off period start?

The Cooling Off period starts from the day after the legal date. The legal date is the day that the Contract becomes ‘binding on the Buyer’, which is the day that all Buyers receive a physical copy of the Contract (signed by the Buyer and Seller). This date may not be noted on the Contract (i.e. it is not necessarily the Contract date). The Contract must be received before 5.00pm on the legal date for that day to count as the legal date. The legal date can be a weekend or public holiday. The cooling off period starts on the next business day. It ends at 5:00 pm on the fifth business day after that.

Example: If the legal date falls on a Tuesday, the cooling off period will end at 5.00pm on the following Tuesday.

It is a good idea to keep evidence of when the cooling off period starts. For example, the seller or their Agent could deliver the contract personally to the Buyer and ask for a notice of receipt, or they could send the contract by fax and keep the fax transmission statement.

Penalties

A buyer may terminate within the cooling-off period by giving a notice in writing to the Seller or their Agent. This is an absolute right and no reasons need to be given, however, there is a cost to terminating. If a buyer terminates under the cooling-off period a “termination penalty” must be paid to the seller. That termination penalty is 0.25% of the purchase price under the contract. If you would like to know what the amount could be, insert a purchase price in the calculator below.

 Cooling Off Penalty Calculator

Where a contract is terminated by a buyer within the cooling-off period, the seller must refund the deposit within 14 days, but the seller is permitted to deduct the termination penalty.

Waiver of cooling-off period

The cooling-off period can be waived by a buyer but only before entering into the Contract. The Buyer will give written notice to  the Seller.

The cooling-off period may alternatively be shortened using a similar procedure.

Pre-contractual legal advice

One could be forgiven for believing that now that there is a 5-business day cooling-off period that the importance of obtaining pre-contractual legal advice is minimal. That is not really the case. As we have seen, there is a cost in terminating under the cooling-off period.

Obtaining pre-contractual advice from your solicitor could be as simple as arranging for the agent to fax the proposed contract through to your solicitor, and your solicitor providing advice and input to you over the telephone. If you are using the Quicklaw DIY service, you can have your Contract reviewed before signing for a small additional fee.

Now, due to sales pressure or impulse resist the temptation to sign a contract prior to seeing a solicitor.

Joint Tenants vs Tenants in Common

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

When you purchase a property, you will need to sign a transfer document that will be registered with the particular State Government. If there will be more than one owner of the property, then you will need to state whether you are holding the property as joint tenants or as tenants in common.

If you own a property as joint tenants, it means that:

• You all own the property in equal shares
• If one of the owners die, then their share automatically passes to the other owners (even if you have a Will that gives your share to someone else – your Will cannot override a joint tenancy)

This type of ownership is most popular with married and long term defacto couples, as it is often their wish that if they die, that their share in the property goes to the other partner.

If you own a property as Tenants in Common:

This way of owning a property is popular with owners who don’t want their share to necessarily all go to the other owners. For instance, if you buy into a property with a group of friends, or with your business partner, etc.

Transfer duty is payable on the transfer of ownership of the property, which is payable by the Buyer.

Strata Title – Buying into a Family

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

When you buy into a Townhouse or Unit complex, you need to consider the special legal nature of that type of property, that doesn’t apply to an ordinary house & land situation.

This is because a ‘strata titled’ complex consists of not just one dwelling, but many (from the normal ‘6 pack complex’ to a unit complex of 100s of units). Whether you buy into a small complex or a large one, there are certain principles that generally apply, as follows:

• You own your unit and the airspace encompassing that unit, but not the external walls
• You have an ownership share, along with all other unitholders, in the common property surrounding the unit (such as a pool, grounds, common stairwells, etc)
• There are rules which govern your use of the Unit and the common property, called Body Corporate rules
• A body corporate (comprised of a committee of owners) is responsible for the maintenance and other matters relating to the complex, and has it’s own individuality (with the right to sue and be sued)
• You pay to the Body Corporate certain levies, and the amount depends on your lot entitlement. There are normally two levies that are payable on a periodic basis: The administrative levy (for general maintenance, such as maintaining lawns, etc) and a sinking fund (for major expenditures, such as painting and large repairs)

I have seen many unit complexes and body corporate situations, and each does have its own particular ‘personality’, which is largely dependent on the character types of owners and how they interact. Just like with a normal family – some are rowdy, some always arguing, some peaceful and stable, so too are various body corporates. If you get a good group of owners and a competent Body Corporate, you will be happy, but a constantly bickering or inflexible Body Corporate can make life very unpleasant. Take a look at the following real life examples:

Example 1: Bonnie was an elderly lady who bought a Unit on the ground floor of a Complex that contained 19 other units. The heat affected her so she wanted to install an air conditioning unit in her bedroom (the type that sticks out of the window/wall). The Body Corporate was a tough one run by a dictatorial Manager, who did not want the outside walls ‘defaced’ by unsightly projections. Bonnie had to stick to a fan.

Example 2: George and Meredith owned a Unit that was part of a ‘6 pack’. Most of the owners used the Units as holiday homes a few times a year, although there were one or two retired owners who lived there permanently. George wanted to put up a lattice wall at the front of his Unit to give him some privacy from the road. The Body Corporate readily agreed and George erected the wall.

Read the Owner’s Corporation family ‘diary’ before you buy!

The Owner’s Corporation is required by law to keep a written record of its various dealings. This includes its budgets and forecasts of expenditure, correspondence, insurance details, particulars of the owners and also the Minutes of meetings with its members.

The Owners Corporation must allow you to inspect their records upon payment of the stated fee.

If the members of the family don’t get along, or there are other problems (such as large expenditures coming up or litigation) then you may not want to buy into this.

By looking at the records before you sign, you can avoid walking into trouble – not all problems that appear after you sign allow you to terminate after you sign (for instance if there is a long history of bickering, disputes or poor management of the complex).

Insurance – the Buyer carries the risk

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

When you sign a Contract to buy a House/Unit or Townhouse, the risk for the improvements on the property passes to you as Buyer (on 5pm of the next working day) under the standard REIQ Contract.

So it is very important that you arrange for insurance to cover any potential damage to the property.

Most insurance agencies can organise a cover note for you over the telephone or Internet. If you are getting finance for the property, be sure to note your financier as the mortgagee on the policy. Some financiers will require you to get a formal insurance certificate before you settle and give them a copy.

Exactly what insurance you need depends on whether the property is a House or a Unit/Townhouse.

Insurance for Houses

Make sure that the value of all improvements are covered. Here is a handy checklist: /p>

• The house itself. Make sure that it covers kitchens, bathrooms, curtains, light fittings and other fixtures. Fixtures pass to you as part of the property
• peripherals, such as other buildings or things that remain outside of the house, such as garages, garden sheds, and pool equipment
• any contents that you have agreed with the owner will stay (eg any furniture, etc)/p>

Insurance for Units/Townhouses

Although the Body corporate for the complex will most likely have insured the complex, this does not mean that the Buyer is safe.

The insurance taken out by the Body Corporate normally only covers the exterior walls of the unit, the common property, and public liability for accidents on common property. The Buyer needs to fill in the insurance gaps.

It is therefore a good idea to contact the Body Corporate to find out exactly what their insurance covers, and what it does not. Most Body Corporate insurances will not, for instance, cover the unit’s contents, or public liability for accidents that occur within the unit.

Buying a Property with Tenants in it

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

When you buy a property and the tenants are to remain in the property, then I recommend that you follow this procedure:

Before you sign the Contract, talk to the Seller or their Agent who manages the tenancy to make sure that the tenants are regular payers and that they keep the property in good condition. If they are not good tenants, look at whether they are on a fixed term tenancy or simply a periodic tenancy. If fixed term, how much longer does the term have to run? If periodic, then you can ask for vacant possession in the Contract (Seller needs to give 4 weeks notice after contract signed).

On settlement, some of the items that you should collect from the Seller include:

• The tenancy agreement (as signed by the previous Landlord (the Seller) and the tenant
• A copy of the condition report (if one exists)
• Bond transfer form
• A letter from the Seller addressed to the Tenant directing them to pay the rental to the new Landlord (the Buyer)

You will also need to adjust the settlement figures for the rental, and collect keys from the Seller/Agent (as your Landlord’s copy).

For more information on residential tenancies in New South Wales, visit the Residential Tenancies Authority site, which provides a host of free information at www.rta.qld.gov.au.

Property Searches – How many? How much?

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

Because the purchase of a property is such a significant investment, it is wise not to skimp on the number of searches that you do.

Standard Property Searches done in Queensland

The standard property searches that most Solicitors will do for you if you are buying a property (and the ones that Quicklaw recommends and are included in the DIY conveyancing service) are:

• Title Search – this search gives you the correct description of the property, confirms who the true owner is, and tells you about any encumbrances over the property
• Registered plan search – this search gives you a copy of the plan for that property (showing you the shape and size) and its position in the street
• Contaminated land search – this search tells you whether the property you are buying is included in the Qld Government contaminated land register (for instance if it was previously a mine or dump or some other operation that contained hazardous substances)
• Land Tax search – this search tells you if the Owner owes any land tax in relation to the property. If the owner did not pay it before settlement, the monies due would pass on to you as the new owner
• Bankruptcy/Company search – tells you if the owners are bankrupt/wound up – if so, they could not hand over the ownership of the property to you without the Official Receiver in Bankruptcy’s approval.
• Queensland Transport search – ascertains whether the property will be affected by any road planning, Airport Noise and Bike-ways proposals.
• Local Authority search – what is included in this search will vary from Council to Council, and the cost will also vary. Normally, the search includes a wealth of information, including the rates position, whether the Council has any requirements or requisitions over the property, building approvals and non approval, and information about whether the property is affected by flooding, and the existence and whereabouts of drainage and other pipelines over the property.
• Water search – this search will reveal what, if any, fixed access and sewerage charges apply to the property, as well as any outstanding charges for Water Consumption that may be owing. You may also be able to obtain a special water meter reading to give you up-to-date information on usage. Depending where the property is located, this search will either be done through Council or a separate Water Authority such as Urban Utilities.

For Units and Townhouses:

Some additional searches are standard – they include:

• Body Corporate Adjudicators search – to see if there are any claims regarding the Body Corporate by any of the Unit Owners
• Body Corporate Inspection of Records Search – this is a physical inspection which is done to see what body corporate levies are owing, the insurance, and a host of information about the goings on in the Body Corporate (eg disputes, any litigation, budget forecasts, etc)

Cost of Standard Searches

The search outlays will vary depending on the Local Council search, but the following is a rough guide:

Additional Searches that may be required:

Energex

When there are major power lines nearby, or you believe a tower may be built near your property.

Town Planning Search

Confirms the zoning of your property, which may be relevant if you intend to substantially re-develop the property you have purchased. (NOTE: this can be an expensive search).

Building Approvals Search

If you want to check whether additions to the property eg decks, swimming pools, have been approved by Council.

Heritage Search

If you believe that the property may be listed on the heritage register (for historically significant properties).

Easements & other such encumbrances (if noted on your title search)

A search will reveal the nature of the encumbrance.

QLD Transport Search

An important search to do if your property is near a railway line. The search will tell you if Qld Rail or other government or major road department has any plans that affect the property.

Survey Plan (offline)

When you are unsure of the property’s boundaries, particularly useful in inner city areas where houses may not be built entirely within actual boundaries.

Underground Cables – Let the Buyer beware

This information has been provided by Australian law firm, Australian Conveyancing Services and is applicable in Queensland only.

In the last 10 years we have seen a surge in communication services, including the Internet, more mobile phones and pay TV. All of these communications are serviced by underground cables, so their presence in residential back yards are also increasing.

The standard conveyancing searches carried out by Solicitors for the Buyer of a property will not discover the existence of any underground cables. This is because communications carriers have special powers granted under the Telecommunications Act which permits them to lay cables without the need to take out easements which show on Title Deeds.

The carrier who wants to lay cables over private property, must notify the Owner of the property and compensate that Owner for any loss that they suffer as a result of the installation. But subsequent owners do not get any compensation and do not need to be notified by the Carrier of the cable’s existence.

With the presence of cables affecting property now estimated to be 3-5% and growing, it is recommended that property buyers (or owners wanting to do work on their property) conduct an underground Telco search as part of their searching procedure. (Statistic quoted from Pronet Consulting, Telco searchers).

The cost of finding underground cables on your property after settlement can be very high:

Get a Telco search done. The costs is $55.00 but it protects a major investment. The best time to do the search is before you sign a Contract.

Getting the cable relocated is one option, but this can be expensive.