Thank you for the opportunity to act on your behalf in the matter of the purchase of this property. To formalise my appointment would you please complete, sign and return the enclosed form headed Conveyancer’s Authority to Act.
Below, I have set out some aspects of property ownership of which you should be aware.
Where there will be more than one owner, there are important differences in the way property can be held, namely as Joint Tenants or Tenants in Common. The enclosed notes explain the difference. Please read these notes carefully, then indicate your preference when completing the Instruction Authority.
Certain legal obligations exist in respect of smoke alarms installed in the property. An explanatory leaflet is enclosed.
It is your responsibility to insure the property immediately after the ‘cooling off’ period of your contract has expired. You should take out cover as a matter of urgency if you have not already done so. If you are purchasing a Strata Title Unit or Community Lot, then insurance cover may already be in place.
I will arrange for Council, Water, Land Tax and Emergency Services Levy records to be changed to your name. As purchaser, you must attend to the connection or reconnection of telephone, gas and electricity utilities.
Please call me on 0412 659 407 any time if you wish to discuss any aspect of your purchase.
IMPORTANT NOTES RE YOUR PURCHASE
THE REAL PROPERTY ACT - DOCUMENT INSTRUCTIONS
JOINT TENANTS & TENANTS IN COMMON
When land is transferred to more than one person, they can own it (be “registered on the Certificate of Title”) either as Joint Tenants or as Tenants in Common.
In very simple terms, JOINT TENANTS collectively own one interest in the land.
Various consequences flow from owning as a Joint Tenant. For example, any one Joint Tenant:-
is entitled to occupy the whole of the land;
has exactly the same interest (share) in the land as every other Joint Tenant;
cannot easily sell/ transfer his or her interest to anyone other than another Joint Tenant in the same land;
cannot leave the share in the land to a person of his or her choice by Will. The share of a Joint Tenant passes to the other Joint Tenant(s) when he or she dies, whether or not they are named in the Will as beneficiaries.
It is usual (but not essential) that a husband and wife acquire land as Joint Tenants.
In contrast, TENANTS IN COMMON own individual shares in an interest in the land. A Tenant in Common:-
may be entitled to occupy only part of the land;
may have a greater or lesser interest in the land than the other Tenant(s) in Common;
can freely transfer his or her interest to anyone;
can leave his or her share in the land to a person of their choice, in their will.
Ownership as Tenants in Common is usually preferred by:-
purchasers who want to retain the ability to transfer their interest independently of the other(s) or leave it under to a person of their choice by Will;
purchasers who have contributed unequally to the purchase and so, wish to hold the land in unequal shares that reflect the proportion of the contribution of each.
If you have further questions concerning ownership as Joint Tenants or Tenants in Common, please feel free to call at any time.