HELD LAWYERS

Est.1991

Property & Commercial Law

Law Matters

May 2012 Newsletter

Welcome to our firms regularly irregular newsletter, Law Matters.

Each bulletin will touch on a broad range of topics in an easy to read, practical way. We aim to
give you a brief, but better understanding of current issues as they arise, and food for thought!

Adam Held
Principal

Changes to Sale of Land Contracts

From 1 March 2012, a number of changes have come
into force. These include:
cooling-off - purchasers can now cool-off even
where they have received legal advice
off-the-plan sales - deposits can no longer be held
in joint vendor/purchaser accounts
There is now a new form of Contract. Main changes to
the General Conditions include:
taking account of the Personal Property Securities
Act 2009 (PPSA)
vendor only required to provide details of building
warranty insurance in the vendors possession
deposits can no longer be held in joint vendor/
purchaser accounts
Unsigned Contracts prepared before 1 March 2012 need
to be amended to comply with these changes, or face
being voidable at the purchasers option up to settlement.

Victorian State Budget 2012-2013 First (new

home) home bonus ends 30/6/2012

in regional Victoria will end on 30 June 2012. The

Victorian State government instead aims to assist all
home buyers by a reduction in stamp duty.
However, the first home grant of $7,000 for purchases
up to $600,000 will remain. First home buyers will also
continue to benefit from stamp duty concessions.

Shorter time limits for paying stamp duty

From 1 April 2012, the time period for paying stamp duty
and lodging documents is reduced from 3 months to
30 days, before penalties apply. In the case of transfers
of land, the effective date will be settlement date.

Rate and Planning Certificates fresh vs. stale

How long can you rely on the information contained in
rate and planning certificates?
There is a mistaken belief that certificates can be relied
upon, i.e. remain fresh, for 3 months from the date of
issue. Indeed, some certificates state that they should
not be relied upon after a certain date, being 3 months
from the date of issue.
This is merely an industry rule of thumb, not a rule of law.

The first (new home) bonus - $13,000 for a new home

in metropolitan Melbourne, $19,000 for a new home

The law in fact provides that certificates can be relied

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Melway59C8

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upon for as long as the information contained therein is

accurate. This might be 1 month, or 6 months, or even a
year. However, prudence dictates that if the certificates
are several months old, new certificates should be
ordered.
Vendors minimize the chance of a purchaser walking
away from a contract on the basis of inaccurate
information. Purchasers maximize the chance that
there are no hidden traps by doing their homework.

Discretionary Trust Deeds powers to distribute

Legislation passed in June 2011 confirmed the ability
of discretionary trusts to stream or selectively distribute
capital gains and franked dividend income. However, the
confirmation of income streaming is dependent on a trust
deed containing the powers to allow it.
Previously, the Australian Tax Office allowed for trust
resolutions to be prepared after the end of each financial
year. This is no longer the case, as many trust deeds
require trust income must be distributed to beneficiaries
before the end of each financial year.
Some trust deeds may not have been reviewed since
formation of the trust, and may have been incorrectly
distributing their income. If you have such a trust, or act
for clients with such trusts, we suggest that you consider
having us review the trust deeds for you.

Personal Property Securities Act 2009 (PPSA)

what is it, and does it affect me?
The PPSA, which commenced on 30 January 2012 set
up a new national scheme governing the title to, and
security over, almost all personal property (i.e. property
other than land) by:
replacing the various different registers with a single
national electronic register, the PPS Register
establishing a single body of national law that sets
out in detail the rules governing priorities between
competing security interests that are attached to the
same item of personal property
Every business that supplies goods (by sale or lease)
needs to consider the impact of the PPSA on its
operations. Businesses ignoring the PPSA face the real
risk of suffering significant losses. Businesses adjusting
their documentation and business processes will enjoy
significant protection from bad debts.
The PPSA is a complicated piece of legislation. It is
similar to the GST in that it has the potential to give rise
to some sort of issue or question for consideration in
virtually every transaction, e.g. credit or finance secured
by personal property; supply of goods on consignment;

hire-purchase or finance lease arrangements; landlord

fit-out; lease assignment and sub-leases.

Wills do you have one?

You might be surprised to learn that the vast majority of
people, perhaps as high as 90%, do not have a Will. Are
you one of them?
Many people simply never get around to making a Will,
or assume that as they dont own anything of value, it
doesnt matter. Having a Will means you decide what
happens to you and your possessions after you are
gone. This is vital if you own property or shares, or run a
business. If you have young children, it also allows you to
determine issues like guardianship.
If you dont have a Will, the law sets out how your estate
will be dealt with is that what you want? Even if you
have a Will, how long ago did you review it? Contact us if
you want us to prepare or review a Will.
Referrals
Should you require non-legal assistance with various
matters, we are happy to provide you with contact details
for a range of service providers, including financial
institutions, accountants, real estate agents, etc.
Topics next issue include
PPSA impact on real estate transactions
Business Names new national register
Laws of succession, wills & probate review
Landlord insurance who is covered?
Property foreign ownership laws
Held Lawyers Areas of Practice
Property Law including conveyancing and leasing
Commercial and Business Law
Banking and Finance Law including mortgages
and guarantees
Wills and Estates Law
Intellectual and Industrial Property Law
Litigation
If you would like further details or assistance or to
discuss information contained in this publication or
generally, please do not hesitate to contact us.
For copies of this and other publications, visit our website
at www.heldlawyers.com.

Disclaimer
This publication is intended to provide a general outline. It is not intended to be a complete or definitive statement of the law on the subject matter covered.
Further professional advice should be sought before any action is taken in relation to the matters described in this publication.
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