INTRO

 

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.

 

  1. 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.

  2. Certain legal obligations exist in respect of smoke alarms installed in the property. An explanatory leaflet is enclosed.

  3. 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

 

Multiple Ownership

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.

 
 
Conveyancer's Authority to Act

I/We confirm that you are instructed to act on my/our behalf for the purchase of the above property and appoint you as our agent (in accordance with the Draft GST Ruling GSTR2000/D20 of the Australian Taxation Office) to order on my/our behalf and at my/our cost, all searches necessary for the completion of the settlement.

You are also authorised to provide to the mortgagee of the property a copy of the settlement statement if required to do so.

 

Details for the preparation of documents:

The FULL LEGAL names of ALL persons to be registered on the Certificate of Title are:

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WE WISH TO HOLD THE PROPERTY AS
I AM / WE ARE FIRST HOME BUYERS
I / WE INTEND TO LIVE IN THE PROPERTY AFTER SETTLEMENT
I AM / WE ARE AUSTRALIAN CITIZENS OR HAVE PERMANENT RESIDENCY

If ‘No’, approval from the Foreign Investment Review Board may be required for this transaction.

 

Also it is important to note the Foreign Ownership Surcharge. Foreign persons (which includes natural persons and corporations) or foreign trusts that acquire an interest in residential land in South Australia are required to pay a foreign ownership surcharge (the “surcharge”) of 7% of the value of the interest in residential land.

IMPORTANT NOTICE - SMOKE ALARM LEGISLATION

Legislation relating to smoke alarms came into force on the 1st day of February 1998.

 

  • If the home you are purchasing was built on or after the 1st January 1995, then it should already have an operational mains powered smoke alarm installed. If not, it is the responsibility of the vendor to install it prior to settlement at the vendor’s cost.

  • If the home was built prior to 1st January 1995, but purchased by the vendor on or after 1st February 1998, then it should already have either an operational mains powered smoke alarm installed, or one powered by 10 year life, non-replaceable, non-removable permanently connected batteries. Again, it is the responsibility of the vendor to install such an alarm prior to settlement, and  at the vendor’s cost.

 

  • In all other cases, the home you are buying must have at least, a battery operated smoke alarm which you are required to upgrade to mains power (or an alarm fitted with 10 year life, non-replaceable, non-removable permanently connected batteries)  within six months of the date of purchase. It is recommended that at least one smoke alarm be installed on each floor of a multi storey dwelling.

 

The smoke alarms must be installed by a licensed electrician and must comply with the Australian Standard. A maximum penalty of $750.00 for a breach of the legislation applies.

 

Besides this penalty, there is also a risk that damage caused by fire to a dwelling, which does not have a smoke alarm installed as required under the legislation, may not be covered by insurance.

PROPERTY INSURANCE

 

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.

Insurance is not required if you are buying vacant land.

TITLE INSURANCE

Title insurance is available through First Title. To understand how Title Insurance can protect your interest in the property read this pagehttps://www.firsttitle.com.au/contents/policy-documentation.

I/We further note and acknowledge that I/we have been made aware that Title insurance is available for purchasers of residential property in South Australia.

I/We understand that while purchasers have always been able to insure their home and contents from physical loss or damage, they have been unable, until recently, to protect their ownership in their home in the same way, which is just as, if not more important. A Title Insurance Policy protects the purchaser’s ownership and use of the property by guarding against certain unknowns and hidden risks that may cause loss or affect

ownership.

IN THIS REGARD, I/WE INSTRUCT KEYSTONE CONVEYANCERS SA TO (PLEASE INDICATE AS APPLICABLE)

Keystone Conveyancers SA recommends this product to you on an independent basis. First Title do provide us with an administration fee for facilitating your policy.

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