CONVE YANCING SE RIE S 2020 Maste r ing the e sse ntials Pr - PowerPoint PPT Presentation

CONVE YANCING SE RIE S 2020 Maste r ing the e sse ntials Pr e se nte d by Phil Nolan, Risk Manage r , L PL C

CONVE YANCING SE RIE S 2020 Maste r ing the e sse ntials Be st pr ac tic e for pur c hase r s

I ntro duc tio n – b e st pra c tic e fo r purc ha se rs Zoom poll Wha t is yo ur mind se t whe n yo u a re a c ting fo r a purc ha se r? • T his is just a no the r c o nve ya nc e . • I a m no t g e tting pa id e no ug h to do this c o nve ya nc e . • Wha t risks a re the re fo r me a nd my purc ha se r c lie nt. • I c a n se e thing s fro m the purc ha se r’ s pe rspe c tive .

An a g e nt’ s ma in jo b is to ta lk pe o ple into c ha ng ing the ir minds.

K e y ta ke a wa ys a nd intro duc tio n Re c o g nise tha t purc ha se rs ne e d tho ro ug h a nd time ly le g a l a dvic e • a b o ut b uying re a l e sta te . E nsure yo u re c o mme nd tha t purc ha se rs unde rta ke a due dilig e nc e • a nd de fine yo ur ro le in re la tio n to a ny due dilig e nc e . K no w yo ur limit so yo u kno w whe n to re fe r the purc ha se r to a n • a ppro pria te e xpe rt. Use a c he c klist to o b ta in ne c e ssa ry info rma tio n fro m the purc ha se r. • K e e p g o o d file no te s. •

Wha t we will c o ve r to da y F ir st half Wa rning s • Cla ims da ta • Due dilig e nc e • 10 minute le g str e tc h Se c ond half Othe r c ritic a l issue s • Che c klists • F ile no te s •

Wa rning - sc a ms

Wa rning - b uye r a dvo c a te Garage 51 Pa ttiso n Stre e t Mo o ne e Po nds - Do e rre nb e rg and Gauc i v Prime E state Pty L td (Civil Cla ims) [2017] VCAT 2028

Wa rning - b uye r a dvo c a te 51 Pattiso n Stre e t Mo o ne e Po nds Do e rre nb e rg and Gauc i v Prime E state Pty L td (Civil Cla ims) [2017] VCAT 2028

Wa rning - b uye r a dvo c a te Zoom poll Ha ve yo u e ve r inse rte d de ta ils o f a b uye r a dvo c a te o r purc ha se r’ s e sta te a g e nt in the pa rtic ula rs o f sa le ? Ye s No

Wa rning – c o nflic t a nd no mina tio n Rule 11 o f the L e g a l Pro fe ssio n Unifo rm L a w Austra lia n So lic ito rs’ Co nduc t Rule s 2015 is a b o ut a vo iding c o nflic ts a nd sta te s tha t: A so lic ito r a nd a la w pra c tic e must a vo id c o nflic ts b e twe e n the dutie s o we d to two o r mo re c urre nt c lie nts, e xc e pt whe re pe rmitte d b y this Rule .

Wa rning – c o nflic t a nd no mina tio n Zoom poll Wha t do yo u do to de a l with a ny po te ntia l c o nflic t whe n a c ting fo r a purc ha se r whe re the re is a no mina tio n? Che c k whe the r the y a re re la te d o r a re a sso c ia te s. • Che c k whe the r the ir inte re sts a re the sa me . • Ob ta in c o nse nt to a c t fo r b o th. • No t a c t fo r the no mine e . •

Cla ims da ta - c o st o f c la ims 2019-20 Small Business, 1.74% Lease, 1.56% Family Law, 4.23% Miscellaneous, 6.01% Property & Personal Injury Conveyancing, 28.17% Litigation, 6.10% Commercial Litigation, 7.88% Commercial, 9.84% Mortgage / Loan / Guarantee, 19.57% Wills & Estates, 14.90% lplc.com.au

Cla ims da ta - - numb e r o f c la ims 2019-20 Small Business, 1.03% Miscellaneous, 5.99% Lease, 1.65% Mortgage / Loan / Property & Conveyancing, Guarantee, 7.44% 26.65% Family Law, 8.88% Wills & Estates, 8.88% Commercial Litigation, 17.98% Personal Injury Litigation, Commercial, 11.98% 9.50% lplc.com.au

Due dilig e nc e - intro duc tio n Zoom poll Whic h o f the fo llo wing is pa rt o f yo ur usua l due dilig e nc e whe n a c ting fo r a purc ha se r? 1. Go o g le se a rc h. 2. Ob ta in re le va nt se a rc he s a nd c e rtific a te s. 3. Go thro ug h the Co nsume r Affa irs due dilig e nc e c he c klist with the purc ha se r. 4. All o f the a b o ve .

Due dilig e nc e – sto ry time Case - Me ie r v Balbin [2013] VCAT 57 ‘ ………T he g e ne ra l a ppe a ra nc e o f the re nde r finish wo uld ha ve b e e n a ppa re nt prio r to the sa le c o ntra c t…..’ . [37] ‘ ……..I t is re a so na b le , ………….tha t a purc ha se r o f a ho me ma ke s a llo wa nc e fo r kno wn o r pa te nt de fe c ts whe n ne g o tia ting the purc ha se pric e a nd, a s suc h, the purc ha se r c a n ha ve no “lo ss” a rising fro m a b re a c h o f the wa rra ntie s in re spe c t o f suc h de fe c ts. By “pa te nt” I me a n a de fe c t whic h o ug ht re a so na b ly ha ve b e e n o b se rva b le o n inspe c tio n a nd the sig nific a nc e o f whic h, in te rms o f a like ly ne e d fo r re c tific a tio ns, o ug ht re a so na b ly ha ve b e e n a ppre c ia te d…..’ . [91]

Due dilig e nc e – sto ry time E xample s of pate nt de fe c ts

Due dilig e nc e – Co nsume r Affa irs Vic to ria due dilig e nc e c he c klist S.33B o f the Sale o f L and Ac t T ip 1962 (Vic ) Co nside r o ffe ring to a ssist purc ha se rs to inve stig a te the issue s ra ise d in the c he c klist a s re le va nt to the ma tte r a t ha nd a nd c ha rg e a c c o rding ly.

Due dilig e nc e - ve ndo r limite d disc lo sure o b lig a tio ns Purc ha se r c lie nts ne e d to Dust fro m unse a le d c o untry ro a d unde rsta nd tha t the ve ndo r ha s o nly limite d se c tio n 32 disc lo sure o b lig a tio ns. Dispute with ne ig hb o ur

Due dilig e nc e - ve ndo r limite d disc lo sure o b lig a tio ns - c o nta mina tio n Case - Mc L e nno n v Clapham and o the rs [2019] ACT SC

Due dilig e nc e - ve ndo r disc lo sure a nd se c tio n 12(d) o f the Sale o f L and Ac t 1962 Any pe rso n who , with the inte ntio n o f induc ing a ny pe rso n to b uy a ny la nd— (d) ma ke s o r pub lishe s a ny sta te me nt pro mise o r fo re c a st whic h he kno ws to b e misle a ding o r de c e ptive o r fra udule ntly kno wing ly c o nc e a ls a ny ma te ria l fa c ts o r re c kle ssly ma ke s a ny sta te me nt o r fo re c a st whic h is misle a ding o r de c e ptive ; sha ll b e g uilty o f a n o ffe nc e a g a inst this Ac t a nd sha ll fo r e ve ry suc h o ffe nc e b e lia b le to a pe na lty o f no t mo re tha n 50 pe na lty units o r to impriso nme nt fo r a te rm o f no t mo re tha n twe lve mo nths.

Due dilig e nc e - ve ndo r disc lo sure a nd se c tio n 12(d) o f the Sale o f L and Ac t 1962 Zoom poll Whic h o f the fo llo wing is a ma te ria l fa c t? Wa te r da ma g e fro m a b a th whic h flo o de d. • F ro nt fe nc e da ma g e fro m a mo to r ve hic le c o llisio n. • Suic ide . • Drug la b o ra to ry. •

Due dilig e nc e - ve ndo r disc lo sure a nd se c tio n 12(d) o f the Sale o f L and Ac t 1962

Due dilig e nc e – la te nt de fe c t vs. pa te nt de fe c t L a te nt de fe c t Pa te nt de fe c t

Due dilig e nc e – la te nt de fe c t vs. pa te nt de fe c t Ca se - De L utis v Ho using Guarante e F und L td [2004] VCAT 2544 ‘ ………Whe re ho we ve r I b uy a t a uc tio n a pro pe rty tha t ha s a de fe c t so pa te nt tha t it must re a so na b ly b e suppo se d tha t it wo uld ha ve b e e n kno wn to the pa rtie s b idding a t the a uc tio n the n the pric e tha t I pa y must b e e xpe c te d to re pre se nt the va lue o f the ho use in its a ppa re nt sta te tha t is, with the pa te nt de fe c t; in this c a se , the b le mishe s c a use d b y the rust spo tting . Of c o urse , a s wa s po inte d o ut in Ca me ro n's c a se , this a rg ume nt ho lds o nly fo r pa te nt de fe c ts tha t must b e pre sume d to b e a lre a dy re fle c te d in the pric e pa id b y the purc ha se r……..’

Due dilig e nc e - de fe c t in title vs. de fe c t in q ua lity Zoom poll Whic h o f the fo llo wing is a de fe c t in title ? • F a ilure to disc lo se a re stric tive c o ve na nt. • T e rmite s in flo o rs b e a re rs a nd wa ll fra me . • Go o ds inc lude d in sa le da ma g e d a fte r sa le b ut b e fo re se ttle me nt. •

Due dilig e nc e - de fe c t in q ua lity vs. de fe c t in title De fe c t in title De fe c t in q ua lity

CONVE YANCING SE RIE S 2020 Maste r ing the e sse ntials 10 minute s le g str e tc h

Othe r c ritic a l issue s - GC 21- b uilding re po rt Bac kgr ound Ge ne ra l c o nditio n 21 sta te s tha t the rig ht to te rmina te o nly a rise s whe re the re po rt disc lo se s a ny ‘ ma jo r b uilding de fe c t’ in the struc ture . I t fo llo ws tha t a purc ha se r ne e ds to kno w wha t a ma jo r b uilding de fe c t is. Opa l to we r Sydne y

Othe r c ritic a l issue s - GC 21 - b uilding re po rt Zoom Whic h o f the fo llo wing a re ‘ ma jo r b uilding de fe c ts’ ? Dra ina g e pro b le ms a nd c o rro sio n in • suppo rt c o lumns. F a ilure to pro vide we a the r strips to • c la dding jo ints. L a c k o f suppo rt unde r b o x g utte rs. • Opa l to we r Sydne y

Othe r c ritic a l issue s - GC 21 - c a se Clarke v Mario tis [2009] VSC 279 3A Bra e side Ave nue , Ca mb e rwe ll Dra ina g e pro b le ms a nd c o rro sio n in c o lumns c la ssifie d a s ma jo r struc tura l de fe c ts.