Most Australians will at some point in their lifetime sign a lease. Whether that be a residential lease for a property to live in, a retail space or for some other commercial endeavour.
Most Landlords will require you to put forth some kind of security deposit/bond in leasing matters.
But what are the requirements for you to do such a thing?
In short security for a Lease is not compulsory. In saying that however, most Landlords will require you to pay one. This gives them some security and goes some way to ensuring that they are not left out of pocket if you damage the property or fail to pay rent.
If you refuse to provide some kind of security, then it is likely that a Landlord simply will not lease the property to you and find a tenant that will.
So what happens to a Security deposit/ bond after you pay it to the Landlord?
Well that depends on what kind of Lease it is that you are signing, so let’s go through them.
Residential
If you are paying a cash security then Landlords are legally required to give you the option of lodging that security with the Rental Bond Board. The Rental Bond Board is a NSW Government run facility which is managed by Fair Trading. It allows both Tenants and Landlords to make a claim for the security in certain circumstances. It also protects the Tenants security by not allowing Landlord to make a claim for the security without cause.
If the Landlord is managing the property without an Agent, then they have ten (10) working days to lodge the security with the Rental Bond Board.
If the Landlord has engaged an Agent to manage the property then the Agent has ten (10) working days after the end of the month to lodge the security with the Rental Bond Board. We also note that a Landlord cannot require you to pay security of more than four (4) weeks rent.
Retail
A cash security paid with respect to a Retail lease must be lodged with the Retail Bond Board NSW, this is a NSW Government run facility very similar to the Rental Bond Board. The security must be lodged within 20 days from receipt of payment.
Commercial
There is no requirement for a Landlord to lodge the security with a Government agency. Commercial leases usually have a provision that notes that the Security Deposit is to be held by the Landlord.
An alternative to paying a security deposit/bond is a bank guarantee. A bank guarantee is a promise given by a bank or lending facility to pay money to the Landlord if the Landlord makes a claim. They are issued for a certain amount and any claim cannot exceed that amount.
Leasing can be complex, overwhelming and is usually a big legal commitment so if you need assistance with a lease, contact us because Helping You is Our Business.
When buying a rural property, it pays to do your homework. Rural conveyancing is a complex area in which purchasers need to take care to ensure they know exactly what they are buying.
The general principle of “caveat emptor” – buyer beware – applies to all land purchases, but has particular significance for rural properties. Not only is a farm a home, but also a business. Failure on the part of a purchaser to adequately investigate the property can have not only functional implications, but often monetary consequences too.
It is generally advisable for purchasers to conduct pre-purchase searches or enquiries prior to entering into the contract – once contracts are exchanged, the purchaser is locked into the deal and it will be too late to withdraw if a problem arises.
Some common searches include:
Livestock Health & Pest Authority – provides information regarding chemical residue and stock diseases.
Crown Lands – ascertains whether there is any land within the boundaries of the farm that does not belong to the Vendor and for which a rental may be payable to the government.
Mineral Resources – with mining and gas installations becoming ever more common, this search identifies whether any exploration or drilling licences affect the property.
Water entitlements – the implementation of water sharing plans is changing the nature of water licences, whereby water entitlements that were once attached to the land can in some situations now be severed from the land and sold separately. The distinction is important not only for the purchaser’s use of the water, but also as it alters the conveyancing process in terms of ensuring the purchaser receives legal title to use the water.
Building entitlements – the introduction of new local environmental plans is changing Council requirements regarding the lot size on which dwellings can be constructed. A farm may have no value to the purchaser if they cannot build their home on the property.
There are a plethora of other enquiries which can be made, however the searches will differ depending on the location and proposed use of the property.
Whilst the searches require money to be expended prior to securing the purchase, it is worthwhile outlaying some funds to ensure the property will meet all of the purchaser’s requirements.
If you are considering buying a rural property, contact the experienced team at Everingham Solomons where Helping You is Our Business.
Click here for more information on Rebecca Greenland.
Purchasing property can be both an exciting and daunting experience. Exciting because on the one hand you have found the property you have been searching for and you start dreaming of what you will do to transform the house into your home. In what can seem like the daunting side to your property purchase is the point at which you first lay eyes on the contract for sale of land. The contract requires you to make some important decisions. When you purchase property with your spouse or partner, you must decide how you will buy the property together. You can purchase either as joint tenants or as tenants in common. The distinction between the two is an important one because it can have an impact on future life events for example a relationship breakdown or death.
If you purchase property as joint tenants, this means that upon your death, your interest in the property automatically passes to your spouse/partner. This is despite any provision in your will to the contrary. This is because your interest in the property does not form part of your estate and it is not available for distribution to the beneficiaries of your will. Many married couples own property as joint tenants. Also a joint tenancy may exist where property is held in trust.
By contrast, if you purchase as tenants in common, then your individual share in the property can be gifted in your will. Furthermore the respective shares in the property may be held equally (e.g. 50/50) or in some other proportion (e.g. 60/40, 75/25 or 80/20 etc). Sometimes couples may choose to own property as tenants in common if for example there are children from a previous marriage for whom they wish to make provision upon their death. Also investors often buy property together as tenants in common.
If property is owned as joint tenants there is a process by which that property holding can be unilaterally severed by one party. The other party is given notice of this before it occurs. There are circumstances where this can be an appropriate course of action.
Being aware of your options can assist you in making a more informed choice when it comes to buying your next property. At Everingham Solomons we have the experience to assist you with all your property needs because Helping You is Our Business.
Click here for more information on Lesley McDonnell
It is becoming more common for employers to be asked by employees to connect their personal devices such as smart phones, laptops and tablets to the employers’ IT systems. The convenience, flexibility and potential productivity gains make allowing an employee to ‘bring your own device’ (BYOD) appealing.
However the use of BYOD, including in non-work hours, can present a number of risks for employers, if the arrangements are left unmanaged.
Factors to consider with BYOD arrangements
Employers need to consider whether it is appropriate to allow employees to access work systems from a personal device which may not have the security, and controls that company devices have. In order to protect a business’ interests it may be necessary for IT to have access to the personal device in order that confidential or sensitive information can be wiped in the event that the device is corrupted or lost.
Additionally, unmonitored connection of a business’ IT systems to personal devices could lead to breaches in confidentiality, unauthorised disclosure of confidential information and use of personal information that is contrary to privacy laws.
Employers may be able to avoid this by implementing measures that require employees to use passwords and report lost devices where confidential or sensitive information is available on the device.
There may also be surveillance issues for employers in certain circumstances when BYOD arrangements are entered into.
The value of appropriate policies
If employers wish to protect their legitimate business interests and guard against inappropriate employee conduct, appropriate policies are essential.
Policies should be put in place to cover BYOD arrangements where:
employees are required by the business to use their own device such as a smart phone or tablet in the performance of their job; or
an employee wishes to use their device to receive work related data and information via their own device.
The Employment Law team at Everingham Solomons is well equipped to assist you to prepare appropriate policies for your workplace because Helping You is Our Business.
Click here for more information on Jessica Simmonds.
What can I do if I own a property with somebody else and I am the only one who wants to sell it?
Section 66G of the Conveyancing Act 1919 provides that where any property is owned by more than one person, one of the parties, who owns at least 50%, can approach the court and seek orders that trustees be appointed and for the property to be sold.
The money would then be held by the trustee and distributed in accordance with any orders of the court.
The court will generally only refuse an application for a sale pursuant to section 66G under special circumstances. An example of a reason might be if it has previously been agreed between the parties that they will not sell the property unless everyone agrees.
In respect to the sale proceeds and how the trustee will distribute those, the following rules apply:
the starting point is that the proceeds will be distributed in accordance with the title as provided for on the certificate of title;
if the property is held in joint names, but the parties have not contributed equally to the acquisition/maintenance, there is a presumption that the property is held in a resulting trust in proportion to the respective contributions;
this presumption of a trust can also be rebutted in cases where there may be a presumption of advancement. Presumptions of advancement come about mostly in cases of property that is held jointly by family members and there may be a presumption that one party care or provide for the other, such as a parent/child relationship.
If you should have any queries about selling land that is jointly owned, please do not hesitate to call us at Everingham Solomons because Helping You is Our Business.
Most Australians will at some point in their lifetime sign a lease. Whether that be a residential lease for a property to live in, a retail space or for some other commercial endeavour.
