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Updated conveyancing practice risk guide8 December, 2017
In 2016/17 LPLC received 127 conveyancing claims and notifications which represented approximately 30 per cent of all claims and notifications received that year. The cost of these claims is currently estimated to be in excess of $10 million.
This represents an increase in both the number and cost of claims compared to 2015/16.
Given conveyancing claims show no sign of abating, LPLC has updated its practice risk guide Claim free conveyancing which contains a list of the most common conveyancing claims and tips on how to avoid them.
When the guide was last reviewed in 2014 the main causes of claims were simple oversight, failing to manage legal issues and poor engagement. The only change is that poor communication is now also a major cause of claims.
Another change to the updated version is the inclusion of a proforma default notice in addition to a rescission notice.
Tax mistakes have increase, especially failing to deal with GST, land tax and CGT issues.
Given the number of GST claims we have also included our new GST checklist in the guide.
To discuss any concerns you have when acting on conveyancing transactions, contact LPLC on (03) 9672 3800. While we are unable to provide legal advice, we can discuss danger areas, how claims may arise and direct you to relevant resources.