Property Transactions in Australia

This assignment delves into the complexities of buying and selling property in Australia. It outlines the responsibilities of both vendors and purchasers, including document exchange, mortgagee involvement, and retention rights. The role of Metropolitan Bank as a mortgage provider is detailed, along with the legal framework governing these transactions under Australian Property Law. The importance of adhering to contract terms and potential consequences for breaches are emphasized.

PROPERTY LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Activity 1.1.............................................................................................................................1
Activity 1.2 Advising on a contract .......................................................................................3
TASK 2............................................................................................................................................6
Activity 2.1 Drafting a transfer..............................................................................................6
Activity 2.2.............................................................................................................................9
TASK 3..........................................................................................................................................11
Activity 3.1 Settlement Statement........................................................................................11
Activity 3.2: Settlement Agenda..........................................................................................13
CONCLUSION..............................................................................................................................15
.......................................................................................................................................................15

INTRODUCTION
Property law is defined as the law which governs the rules and regulations related with
property. This law mainly falls under the category of common law where decisions are taken on
the basis of situations. People must follow the guidelines of contact law and property law while
purchasing and selling any land. This report will be divided into three different part where first
part will provide knowledge about contract of property law. The second part will give major
focus on pre-settlement and why this is necessary. And the final task will be related with actual
settlement and what are necessary steps that need to be followed at the time of post-settlement.
TASK 1
Activity 1.1
It is necessary that there must be a valid contract between buyer and seller at the of
purchasing and selling any property. It is mandatory that every section must be properly
addressed to make it a valid contract. Simple mistake can create various issues and that can be
converted into stay order from different level of court. Some of the clause that are required at the
time of involving in any type of contract related with property law are listed below.
1. There must be the certificate of property for which agreement is to be done.
2. The plan of land should be there which is related with the shape and structure of
particular law or property.
3. Certification of Environmental Planning and Assessment Act, 1979 must be obtained
under section 10.7(2)
4. The owner must have the diagram of infrastructure which covers the sewerage facility
where location must be provided of sewer lines.
5. Certificate of land tax clearance should be there at the time of purchasing property.
6. If owners want to have insurance of the land than documents must be attested which falls
under home and building Act, 1989.
7. Certificate of swimming pool (alternate as it should be obtained in those condition where
there is requirement of any swimming pool in the boundary of that property which is
going to be bought.)
8. In the case of property if any by-laws are prepared then it is the responsibility of that they
prepare legal documents of under clause no. 23 of contract law.
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9. If property is to be further divided, then plan of land is also required to be obtained under
the contract of property law.
10. This are some of the basic requirement which need to be followed at the time of purchase
and sale of property. Additional contract may be required upon the desire of purchaser.
After taking the proper knowledge about the field the legal documents are to be prepared
where it is to be mentioned that,
TERM & Condition of a contract
Here by the document should be singed by both parties which contain the following
documents:
1. Contract of sale:
2. Property:
3. Purchase price:
4. Terms of Payment and possession
This are some of the area that need to be focused more at the time of entering into a
contract.
Some of the disclosures that need to be done by vendor at the time of doing contract.
Here it is necessary that vendor must do some of the necessary disclosures where they
need to mention all those facilities which are present in the particular land. According to the
recent changes, vendor must tick the boxes where document is prepared by legislation. The box
contains various like information dishwasher, light fittings, stove, solar panels, TV antenna, and
any more. Here those areas should be ticked which are present in house or land.
After that it is necessary that clause 3 should be marked which state that vendor is agreed
for deposit-bond and if transaction is going to done through electronic mode that clause 30
should be filled with appropriate documentation.
Two conditions that need to be fulfilled
1. The purchaser need to keep the property in good condition and where proper repairing on
time of time is required.
2. Must allow the vendor or authorized person of vendor to enter in the premises of land for
the purpose of inspection.
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Activity 1.2 Advising on a contract
In this activity the report will contain all the necessary information that need to have
before entering into the contract of property. Here, it is mandatory that buyer must follow the
guidelines which are given in Property Act of Australia. It is clearly mentioned in the file that
buyer must be aware at the time of purchasing any kind of property in auction.
Some of the necessary points that are mentioned below in the file from the point of
Lawyer which must be consider by Purchaser. The responsibility to check the following
documents is of Purchaser.
11. According to legislation of Property Law, vendor must disclose the facts regarding any
non-compliances regarding the property which is going to be purchased.
12. The original documents of a property must be checked by Purchaser for the purpose of
cross verification. If not checked then purchaser himself will be liable for the default.
13. The identity of a property must be mentioned at the time of entering into the contract and
it is the responsibility of vendor that he must verify the property with all those contracts
and legal documents which have been done on the ground of property.
14. List of special conditions and special contact from both buyers and purchasers point of
view.
15. The documents of land tax and stamp duty verification work must be done by Purchaser.
16. Documents of building, pest, electrical and strata must be obtained for the purpose of
inspection of property.
17. Contracts must be verified and all legal terms must be check as breaching of contract can
convert into heavy losses with various penalties.
18. As this property is being purchased from the process of auction so buyer must check the
pre-approval documents for the purpose of cross verification under clause 27.
19. The buyer must check those facilities which are already fitted in the premises of a
property.
20. The condition of section 10.7(5) should be checked regarding additional information of a
property and it must be completed in time so that chances of breach of contract will not
occur.
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21. The diagram and map of sewerage must should be verified whether it is up to the mark
or not according to the given report. And if there is any fault then it must be notified to
the authorized department.
22. Stamp duty is to be given by the purchaser with addition to some of the additional
charges which are necessary to be paid at the time of buying any legal property which is
mentioned in the contract deed.
23. If there are any by-laws on the agreed land, then it must be obtained in written by mutual
understanding of involved party. By-laws must not overrule the legislation and if is found
then it will be declared as null and void.
24. If there is any deposit bond, then expiry date must be checked properly with the amount
of approval given by vendor.
25. At the time of payment only up to the amount of $20000 can be paid through the mode
of cash and remaining must be paid by the process of cheque.
This are some of the advices that a lawyer must give provide to the purchaser at the time of
buying any kind of property in the premises of Australia. This information will be helpful for the
buyer. According to the Property law’s contract paper, detail information about the clause is
mentioned below with fact description of each and every contract that need to be considered by
purchaser and vendor.
Special contract that are mentioned by the vendor
5. It is to be noted that purchaser must follow the condition of contract for at least 12-month
else legal action can be taken and it will fall under the category of breach of contract.
6. Purchaser himself will be liable for all those contributions which are determined after the
date of contract.
7. As mentioned in the contract, repair work should be conducted on short interval and
condition of a property must be kept in a good condition.
It is compulsory that condition of special contract must be completed on given period of
time or making contract successful.
Special Condition which need to be read carefully
3. It is mentioned in the contract under clause 15 that, agreement must be completed with
specific period of time else interest will be charged at 10% p.a. will be given to vendor.
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4. Purchaser is not allowed to claim for any compensation for those matters which are
already disclosed in the survey of land.
5. Notice must be given of at least 14 days which will be reasonable time to complete all
those issue which can raise on the matter of land.
Breach of Contract
It is that term in the contract which is very powerful when contract is not completed
successful. It is the responsibility of both the parties that they must fulfil the terms and condition
of contract which have been mentioned under the agreement. In this situation, if it is proved that
defaulter have done default that legal action will be taken for the purpose of compensation. The
buyer must be aware of the clause which are mentioned above in legal advices which are given
by the lawyer. Even purchaser can claim the damages if vendor do misrepresentation of his
property but it will be the responsibility of buyer that how does he prove that in the premises of
court.
This are some of the matter that need to be checked clearly by the purchaser at the time of
buying any property from vendor. Any default from both the party can legal remedies against
each other. So buyer must be careful regarding terms and condition that are mentioned in the
clause. There are some of the by-laws that should be checked carefully that whether it is valid,
void or void ab initio. It is mention in the legislation that by-laws cannot overrule the term and
condition of legislation of property law which are mentioned in Properties Law Act 1974.
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TASK 2
Activity 2.1 Drafting a transfer
In context of purchaser drafting a transfer deed where complete detail is mentioned.
Address of a Property: 282 Lawrence Street, Alexandria New South Wales.
Vendor: Peter Dallas Wells
Date of completion: 42nd day from the date of contract issued which is mentioned under Clause
15.
Vendors Agent: Real Estate Sales Pty Limited.
Phone no: 92316054
Purchaser: Joshua Wei WANG and Florence WANG
Title
1. Identity of the Land
 The possession of a land is in hand of Sydney Bank as they have the legal possession
of a building at present.
 The diagram id of a land is DP1881
 The legal possession is in the hand of Sydney Bank because Peter Dallas Wells have
taken the loan against the property which he was unable to clear on given period of
time.
2. Consideration
 Price of land and building is $1,620,000
 Deposited by purchaser is $162,000
 The amount which is still due and need to be paid is $1,458,000
NOTE: 10% of the price was to be paid at the time of auction remaining will be paid
as per written in contract.
3. Consents
It is to notify that vendor must provide all necessary documents which must be given by
him according to the relevant section of Property law. If is any default is found then legal
action can be taken at any time without giving prior notice.
4. Building Warranty Insurance
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Vendor will provide all those documents which are related with the insurance of building
for that vendor must not take more than 42 days from the date of payment of first 10% of
amount. As it will provide the guidelines to the purchaser at the time of final verification.
5. Payment
The payment of a land will be done in cash up to $ 20000 and remaining amount must be
paid by the source of cheque. Even payment will be done thorough online source under
clause 30. Even other relevant sources can be used if mutual consent is obtained.
6. GST (Goods and Services Tax)
If any amount is due related with GST must be given by vendor at the time of submitting
all the documents to Joshua Wei WANG and Florence WANG
7. Loan
Purchaser have the option to revoke from the contract on the option that the approval for
loan will take more time than period of 42 days. If in this condition vendor have any kind
of issues regarding the payment, then contract of property can be revoked at the option of
purchaser.
8. Inspection
Joshua Wei WANG and Florence WANG have the authority to inspect the premises of
land and building for the purpose of verification at any period of time during the business
hour. But prior notice must be given to vendor so that he can be present at the time of
inspection. It will help to clear all the doubts which can arise time of inspection.
9. Interest
Joshua Wei WANG and Florence WANG will pay 10% p.a. if any default is made at the
time of doing payment. Even legal action can be taken at any period of time.
Note: This condition applies only for the purchaser as in this condition default can be
done from one party one and i.e. Purchaser.
10. Adjustments
 It will be the liability of vendor that payment of all related bills such as water,
electricity, rent, sewerage, land tax will be paid by vendor till the date of sale and
after that the liability will be of Joshua Wei WANG and Florence WANG.
 IF any amount will be reduced by the legislation on that property in which auction
has taken place must be reduced by vendor at the time of final payment.
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This are some of the adjustment where vendor and purchaser must give special focus.
As it will decide help to conclude the contract in a systematic manner.
11. Date of completion
The date of completion of this contract will be 42nd day from the day of payment of first
10%. If this condition will not be satisfied, then vendor have the option to sue Joshua
Wei WANG and Florence WANG on the ground of legal documents.
These are some of the clause that need to be prepared by the agent of Joshua Wei WANG
and Florence WANG on the option that this condition must be fulfilled. This conditions have the
legal existence in the eyes of court and on that option both the party will get the opportunity to
sue each other if default is done from any of the side.
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Activity 2.2
In this activity there will be complete detail about loan and commercial lease from
purchase point of view. This is will help to understand and enhance the knowledge regarding file
of loan that how can a person apply for loan and what are the limitation of it. This will basically
help to understand the case of loan policy on land and building in the boundary of Australia.
Loan Agreement
This loan Agreement state that the loan agreement is between Metropolitan Bank and
Joshua Wei WANG and Florence WANG for the purpose of buying property. The address of a
property is 282 Lawrence Street, Alexandria New South Wales. So in order to accept the
agreement of loan please read the document carefully and return it within 28 days from the date
of receiving the agreement paper.
The amount of loan which Metropolitan Bank is going to provide is $740,000 on which
the rate of annual interest will be 4% which is equivalent to $3532.87 in a year. The loan will be
granted for 30 years from the date of purchasing the property.
NOTE: The amount of loan on which interest is being charged can be changed at any
period of time, Also, method of calculation, time required for payment or repayment can be
changed at any period of time according to the notification of Central Bank of Australia. The
contract clause is mentioned below that must be read very carefully as it need to be very useful at
the time of preparing contract.
1. Rate of interest
The rate of interest that is to be charged on loan amount is 4% but at the date of
disclosure it will be charged 6% instead of 4%.
2. Security Deposit for loan amount
The property on which loan is being given is under the security deposit of bank. The
minimum amount of property insurance is $ 810,000. Also, there is no guarantor as per
the term and condition of a contract there is no requirement of guarantee in Metropolitan
Bank.
Term & Condition of Loan
1. New bank account is to be opened in the name of Joshua Wei WANG and Florence
WANG as amount of loan will be shown as debt and amount will be deposited in this
year every year or monthly as per the suitability of applicant.
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2. Document for the purpose of security is required and any default is found then bank may
refuse to pay the loan amount. Security can be withdrawal only on the option of bank.
3. The payment of loan must be done on given period time and if any default is found in this
condition then compound interest will be charged.
4. The statement of your account will be sent to the registered address in every six months
where any amount can be prepaid also from the due date.
5. The applicant will be treated as defaulter if they are unable to pay the due amount of
contract on given period time. Also, if default is found on the ground of breach of
contract then also it will be treated as defaulter.
6. As per the guidelines of National Credit Code, agreement and provisions can be charged
at any period of time if it is necessary and effective date will also be notified in the same
documents.
7. This agreement is based on legal terms and conditions/law which are enforceable in the
premises of New South Wales and it must be followed by both applicant and service
provider.
Things You Must keep in mind before singing this deed
As this is a legal document it must be properly read as first. Once reading is
completed than it is the responsibility of applicant that they must clear all those doubts which
have been raised during the term and condition of contract. Applicant have the opportunity to
cross verify the agreement with the guidelines of law which has been prepared for New South
Wales. It is to notify you that once you have signed this document you are not authorized to
revoke. If it is found so than it will be treated as breach of contract under contract law.
Do Not Sign the Contract Paper if there is any query or doubt related to this agreement.
Above format is the form of preparing document of loan agreement which is being used
in the case of property law in the premises of Australia and it must be followed as given in the
guideline of terms and condition. The loan agreement will play crucial role the process of buying
property within the time period of 42 days. Metropolitan Bank will be the one who will play
necessary role in this loan agreement. But it is the responsibility of Wei Wang and Florence
Wang that they read all the clause which have been mentioned in the loan agreement.
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TASK 3
Activity 3.1 Settlement Statement
Settlement paper is those statement which must be prepared by the person who is
purchasing any legal property. In this condition purchaser need to mention all those details which
must be forwarded to vendor. The reason behind informing the vendor is that this settlement
document is related with the process of amount which were due from the time when legal owner
of the property was vendor.
Settlement Statement
This settlement statement is to inform Peter Dallas Wells regarding the issues which have
been found in the property which have been bought by Joshua Wei Wang and Florence Wang.
This settlement is to inform you that still that are lots of payment that need to be done.
According to term and condition of a contract it was mentioned that all those expenses which
have been occurred during the time period of Peter Dallas Wells must be paid by him only. So, it
is to inform you that any payment which is being paid by Wei Wang and Florence Wang on
behalf of Peter Dallas Wells will be recovered from overall cost.
Total Cost of a Property: $1,620,000
Amount Deposited: $1,62,000
Remaining Balance: $1,458,000
Any payment done will be reduced from the remaining balance of property which is to be
paid by Wei Wang and Florence Wang within 42 days of agreement. Ad for reducing the overall
cost of the building it is necessary for the purchaser that they keep the documents of payment as
proof of amount paid.
Some of the charges which are due under section 66 of Sydney Water Certificate
This document is to inform you that some of the charges that need to be paid by the Peter
Dallas Wells for the property no 3872316. The payment is due from 1st July, 2015 to 30th
September, 2016. The brief detail about all the payments have been mentioned below.
Total amount to be paid of service charges: $174.10
Water uses till 1st September, 2015: $161.84
Total amount to be paid in this condition is $335.94
Charges due under Council Rates Certificate s603
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As per the registered information it is to inform Peter Dallas Wells that there are some of
the charges which need to be clear on time. the location of a property is 282 Lawrence Street,
Alexandria NSW 2015 where the value of land is noted in the recent update is $745,000. The
date of Levy rate is due since 1st July, 2015.
Ordinary Residential Rates: $1315.24
Charges on Domestic Waste Standard 120 Litre Services: $562
Current Year Levy: $1841.24
Amount Credited: $460.35
Remaining Balance: $ 1380.89
This are some of the charges that are being paid by Wei Wang and Florence Wang and
they have the authority to collect it from Peter Dallas Wells as it has been already mentioned at
the time of entering into the contact.
Adjustments Done by Wei Wang and Florence Wang
As charges are due under for the property no. 3872316 which are paid Wei Wang and
Florence Wang which will be adjusted from the remaining balance. The amount that is to be paid
to mortgager is:
Remaining Balance: $1,458,000
Less: Charges of Sydney Waters: $335.94
Less: Charges of Council Rates Certificate: $1380.89
The amount which were due during the time period of Peter Dallas Wells will be paid by
Wei Wang and Florence Wang. This payment will decrease the amount of payment were was
actually need to be done. Now the new amount that is to be paid to mortgager (Sydney Bank) is
$1456283.17. This deduction was done on the basis of contract detail which was mentioned in
the detail contract.
Settlement
This settlement agreement is to inform Peter Dallas Wells that the amount which is to be
by Wei Wang and Florence Wang will be paid to Sydney Bank. This condition will take place
because there is mentioned in the report that as property is under mortgage process so there is no
requirement to pay any amount to Peter Dallas Wells. The amount will be given through the
process of Cheque where it is mentioned Wei Wang and Florence Wang have taken loan for the
property no 3872316 from Metropolitan Bank for 30 years.
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This is the document which have been prepared by the agent of Wei Wang and Florence
Wang for the propose settlement which is to be done during the process of buying property in
New South Wales of Peter Dallas Wells. As per the contract deed Purchaser have the opportunity
to clear all the due payment on behalf of Peter Dallas Wells which can be deducted from the
overall balance which is due and must be paid within 42 days from the day of auction.
It is to inform Peter Dallas Wells that this documents must be signed so that next process
can be started on given period of time. The time period from signing this document is next 10
days from the date of receiving the document. There must be mutual consent of both the parties
with prior approval of Mortgagor as final amount must be received by Sydney Bank.
Activity 3.2: Settlement Agenda
This is to inform all the related party who is involved in the case of buying property from
Peter Dallas Wells. This will help to understand the role of every party where it will be cleared
that which party receive which document with amount of money payable and receivable.
Matter: Purchasing of property from the auction sale.
Place of Settlement: New South Wales Land Registry Services
Time of Settlement: 12th September, 2016
Attached Documents: Property Paper, Loan Papers, Tax Clearance Paper, Certificate of
Auction, Clearance of Previous Due Payment, Notice of Sale
The detail information regarding the settlement agenda is mention below where it have
been clearly mentioned that which documents are necessary at the time of buying and selling the
property. It well clear the doubts that who is entitled from which documents and amount of
money.
Receive from Vendor’s solicitor
This is to inform Wei Wang and Florence Wang that they must receive all those
document which are mentioned according to Property law. The documents are Certificate of title,
Discharge of property certificate, certificate of information to the building, mode of payment to
be done and the keys of the building in given period of time.
Mortgagee Receives
The documents that need to be deposited to Metropolitan Bank by Wei Wang and
Florence Wang are listed with full detail. Certificate of title must be submitted, Notice of
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Transfer, document of notice allotment, document of Change of Owner, Mode of Payment, new
mortgage, insurance paper (if any) and final search paper must be obtained by them.
Give to vendor’s solicitor
As the document of property is to be submitted to Wei Wang and Florence Wang with all
relevant information and documents. In this case of the relevant matter that vendor is entitle to
receives are: Undertaking of a property, Cheque for discharging mortgagee, cheque of vendor’s
solicitor, document of deposit holder etc. This are some of the documents that purchaser must
submit to vendor.
Receive from incoming mortgagee
In this situation the incoming mortgagee is entitled to pay the amount of loan which they
have agreed to pay to Wei Wang and Florence Wang as they have already the paper of property
including all the relevant documents like final search, tax clearance, Paper of Auction and even
the contract which have been signed between Peter Dallas Wells and Sydney Bank.
Retain
The power of retention will be in the hand of Metropolitan Bank till the settlement of last
payment by Wei Wang within the time period of 30 years. After that the power of retaining will
be in the hands of Purchaser. They can retain the survey of land and building where they can take
the keys of a building. Also, copy of rate adjustment and any cheque drawn for the cost of
external settlement.
This are some of the information that must be considered at the time of buying and
selling property under Property Act of Australia. Property must be in the same condition which
was shown at the time of auction and contract deed. If any default is found, then legal action can
be taken at any period time or even deed of a contract can be terminated with immediate effect.
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CONCLUSION
From the above report it can be concluded that there are various procedure that need to be
fulfilled by purchaser and vendor at the time of buying or selling the building in the premises of
Australia. There are various rules and regulation that need to be fulfilled by the vendor and even
purchaser too for meeting the criteria of a contract paper which has been prepared by them. It is
one of the lengthy process which must be completed to receive the documents of property. From
the Act, it is cleared than even auction can take the place if the payment is not done in given
period of time or even any other legal action can be taken as per the given guidelines. Also, it
can be understood that the while purchasing the property every term and condition must be
cleared which will be easy to understand the legal process to obtain the rights on the property. At
the end it can be said that the no one has the rights to breach the contract without giving
justifiable reason as it can be hard because of legal remedies that need to be fulfilled if case is
registered in the court. Pre settlement process have been one of the crucial process in the file as
this was one of those process through which it can be seen that the payment which was done by
purchaser will be deducted at the end time of final payment. As this condition was already
written in the contract a paper.
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