When does “approval” of finance, really mean you have the loan?

Headshot of Suzanne Hindmarsh - Conveyancer at Everingham Solomons TamworthYou’ve been saving hard and have the deposit to purchase your first home. You’ve looked at many houses and finally found the one. You’ve made an offer through the real estate agent and your offer has been accepted by the vendor.

You organize your pest and building reports. You know your finance is arranged as you’ve been pre-approved by your chosen lender. WRONG!

A pre-approval of finance from a lender is only an “indication” of the amount the lender considers you may borrow based on your previous financial circumstances.

Until you make a formal loan application for the house you have chosen and subsequently you receive written confirmation of finance approval from your lender noting the details of the house you intend to purchase plus a signed loan offer, the lender is under no obligation to provide you with finance.… Read More

Conveyancing Terminology

Buying or selling real estate is an exciting prospect. The actual process of transferring ownership in land can be quite daunting for many people. Sometimes a buyer/seller of property has difficulty understanding conveyancing terms their solicitor/conveyancer uses.

The following are some commonly used terms you will encounter when buying or selling property in NSW:-

Vendor: the owner of the property

Purchaser: the buyer of the property

Mortgagee: the Bank providing monies to a person for the purchase of property

Mortgagor: the person borrowing the money from the Bank to purchase the property

Offer: The price the purchaser puts to the vendor (usually through a real estate agent) for the property.… Read More

Your Certificate of Title and Identity Fraud

What is a Certificate of Title or eCT?

If you are a home owner, your Certificate of Title (land title deed) is an instrument executed by the Registrar General at the Land Registry Services, and is evidence of your ownership of your property. In 2018, all paper Certificates of Title held by the banks were converted to electronic certificates of title called eCT’s.

Where is the Certificate of Title normally kept?

If your property is mortgaged, your eCT is held by the mortgagee – the person or entity who lent the money to you, for example the Bank.
If you do not have a mortgage, your paper Certificate of Title should be kept in a safe place, for example:

• With your solicitor
• In a safe deposit with the Bank
• In a safe place with your other personal papers

What happens if a Certificate of Title is destroyed or misplaced?Read More

Residential Tenancies Act – Water Efficiency Measures (Part 7)

 

There have been amendments as to what water efficiency measures a landlord needs to undertake under Residential Tenancies Act 2010 and new Residential Tenancies Regulation 2019 which commenced on 23 March 2020

Before a landlord is able to pass on water usage charges to the tenant, the residential property must be separately metered, meet the water efficiency measures prescribed by the Residential Tenancies Act, and the charges must not exceed the amount payable by the landlord (according to the water supplier’s bill or other evidence).

The changes provide additional water efficiency measures, including all taps and toilets on the property need to be checked at the start of a tenancy so any leaks are fixed.… Read More

Residential Tenancies Act – Break fees payable by tenant (Part 6)

ReThere are new break fees payable by a tenant who wishes to break a fixed term lease under Residential Tenancies Act 2010 and new Residential Tenancies Regulation 2019 which commenced on 23 March 2020

Mandatory break fees apply to all fixed-term agreements of 3 years or less, when a tenant ends the agreement early. This applies to agreements that are entered into from 23 March 2020.

The break fees are:

• 4 weeks rent if less than 25 per cent of the agreement has expired
• 3 weeks rent if 25 per cent or more but less than 50 per cent of the agreement has expired
• 2 weeks rent if 50 per cent or more but less than 75 per cent of the agreement has expired
• 1 weeks rent if 75 per cent or more of the agreement has expired

For example:

• If 7 months of a 12 month tenancy agreement (or 58 per cent) has expired, a tenant would need to pay a fee equal to 2 weeks rent to the landlord to end the agreement early
• If 2 months of a 6 month tenancy agreement (or 33 per cent) has expired, the tenant would need to pay a fee equal to 3 weeks rent to the landlord to end their agreement early

If you need assistance with any property or land matters contact Everingham Solomons because Helping You is Our Business.Read More

Residential Tenancies Act – Tenants damage and modifications (Part 5)

There have been amendments as to what constitutes damage and the rules regarding removing modifications under Residential Tenancies Act 2010 and new Residential Tenancies Regulation 2019 which commenced on 23 March 2020

Tenants are responsible for any damage they cause to the property.

At the end of the tenancy, a tenant is responsible for leaving the property in the same condition as at the start of the tenancy, except fair, wear and tear. This includes making sure any alterations, additions or renovations are removed and also fixing any damage caused to the property. A tenant can choose whether to remove any ‘fixtures’ they have installed, provided they repair or compensate the landlord for any damage caused by removing the fixture.… Read More

Residential Tenancies Act – Can a tenant alter the premises? (Part 4)

There have been amendments as to what constitutes alterations of a ‘minor nature’ under Residential Tenancies Act 2010 and new Residential Tenancies Regulation 2019 which commenced on 23 March 2020.

The new Regulation lists the kind of fixtures, alterations, additions or renovations that are ‘minor’. Some examples are:

• securing furniture to a non-tiled wall for safety reasons
• fitting a childproof latch to an outdoor gate of a single dwelling, installing child safety gates inside the property or window safety devices
• installing/replacing an internal window covering e.g. curtains, removable blinds, installing cleats/cord guides to secure blind/curtain cords
• installing a wireless removable outdoor security camera
• applying shatter-resistant film to window/glass doors
• planting vegetables, flowers, herbs or shrubs (shrubs that don’t grow more than 2 metres) in the garden if existing vegetation/plants do not need to be removed
• installing hand-held shower heads/lever-style taps to assist elderly or disabled occupants.… Read More

Residential Tenancies Act – Smoke Alarm Obligations (Part 3)

There are new smoke alarm obligations for landlords and tenants under Residential Tenancies Act 2010 and new Residential Tenancies Regulation 2019 which commenced on 23 March 2020.

Landlords need to ensure smoke alarms installed in a rented property are in working order.

Under the new Regulation, a landlord must repair/replace a battery-operated or hardwired smoke alarm and:

• carry out annual checks to ensure all smoke alarms installed at the property are in working order
• replace a removable battery in all smoke alarms in the period specified by the smoke alarm manufacturer (for a removable lithium battery) or otherwise annually
• repair/replace a smoke alarm that is not working within 2 business days of becoming aware that it is not working
• provide more than an hour’s notice to the tenant to replace or carry out repairs to the smoke alarm
• replace a smoke alarm with a new smoke alarm within 10 years from the manufactured date, or earlier if specified by the smoke alarm manufacturer.… Read More

Residential Tenancies Act – What is fit for habitation? (Part 2)

There are new minimum standards to clarify “What premises are fit for habitation” under Residential Tenancies Act 2010 and new Residential Tenancies Regulation 2019 which commenced on 23 March 2020.

Currently landlords are required to provide a rented property in a reasonable state of cleanliness and ‘fit for habitation”. The changes introduce 7 minimum standards which clarify what ‘fit for habitation’ means.

To be fit to live in, the property must (as a minimum):

1. Be structurally sound
2. Have adequate natural or artificial lighting in each room, except storage rooms or garages
3. Have adequate ventilation
4. Be supplied with electricity or gas, and have enough electricity or gas sockets for lighting, heating and other appliances
5.… Read More

New Form of Residential Tenancies Act (Part 1)

There’s been amendments to the Residential Tenancies Act 2010 and new Residential Tenancies Regulation 2019 which commenced on 23 March 2020.

The purpose of the changes are to improve the tenants’ renting experience while ensuring landlords can improve management of their properties.

The aim of the changes are:-

* to assist with reducing disputes over repairs and maintenance,
* increase protection and certainty for tenants, and;
* clarify the rights and obligations of tenants and landlords.

One of these changes is a new form of Residential Tenancy Agreement and Condition report to be used for agreements entered into from 23 March 2020.… Read More