Key Risk Checklist: Purchase of land – questions for the purchaser

16 August, 2016
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Purchase of land – questions for the purchaser

 

Responses required without delay

☐  Circle yes or no as applicable.

☐  Provide the additional information as indicated.

☐  If you do not know the answer or are unable to provide the additional information please insert the words ‘not known’.

☐  Please sign where indicated at the foot of the final page and forward this completed list and all necessary information to the sender.


Related download – Tenants and Tenants in Common client handout


No

Question

Answer

Title
1. Who is to be registered on the title(s) to the land?

If more than one person how do you want to be recorded as owners?

  • Joint proprietors – on death property goes automatically to other joint proprietor(s).
  • Tenants in common – on death share in property forms part of deceased’s estate.

If they are not named in the contract we will need to do a nomination. Nomination must occur without delay to avoid double duty.

Proof of identity is required in accordance with the Model Participation Rules issued by ARNECC for anyone who is to be registered on title.

[Please also sign and return the attached client authorisation form if the sale will be conducted electronically.]

Insert details:

 

ABN:                         Share:

ABN:                         Share:

If tenants in common please advise the share to be held by each person. Consider issues such as:

  • amount paid in cash by each person
  • liability for repayment of any debt / expenses
  • contributions by third parties ie parents
  • entitlement to equity
  • amount to be paid on sale
2. Is any person to be registered on the title(s) in their capacity as an executor, trustee, guardian or administrator? Yes/No

If yes – provide details

3. Is any person to be registered on the title(s) related and/or associated with the vendor, including any subsidiary or holding company? Yes/No

If yes – provide details

 

About You

 
4. Is anyone to be named in the contract and/or to be registered on the title(s) a foreign person / resident?

A foreign person includes an individual not ordinarily resident in Australia and a foreign company for the purposes of the Foreign Acquisitions and Takeovers Act 1975 (Cwlth)

A foreign resident means a person who is not a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (Cwlth)

Yes/No

 

If yes, you may be required to obtain prior approval from a state and/or federal government to buy the land and when you sell the land certain withholding obligations apply.

5. Provide the date of birth of each person to be registered on the title(s).

We are required by law to provide this information to various government agencies.

Name:

Date of birth:

Name:

Date of birth:

 

6. For a corporate purchaser, who is authorised to give instructions, sign the contract/vendor’s statement/transfer? Insert name(s):
7. Are you the selling agent or the agent’s employee or relative? Yes/No

If yes, refer to section 55 and 55A of the Estate Agents Act 1980 (Vic) for the process to be followed.

Insurance, tax, duty and wills

8. Have you arranged insurance for the land? Yes/No

Please discuss any insurance requirements with your insurer / broker. Some purchasers take out their own insurance prior to settlement to ensure adequate insurance is in place.

You should be aware that the vendor may not have adequate insurance cover or any insurance at all.

9. Will you be applying for:

  • first home owners grant
  • reduction in duty payable for any reason. For example, pension concession, transfer to spouse.
 

Yes/No
Yes/No

10. Have you considered the tax consequences, such as GST, GAIC, land tax, CGT, and stamp duty of your purchase?
If no, do you require us to advise you on any tax issues?
Yes/No
Yes/No
We recommend you also discuss any issues with your accountant.
11. Have you considered the effect the purchase will have on your will? Yes/No

Finance

12. Have you paid the full deposit?

Please inform us if you paid by bank guarantee / deposit bond.

If yes, was the deposit more than 10 per cent of the price?

Yes/No
Yes/No
13. Are you purchasing subject to finance being approved?

If yes:

  • you need to keep us informed of your progress every two days and must notify us before the approval date about whether finance has been approved to enable us to notify the vendor to end the contract.
  • the vendor may ask for evidence of your inability to obtain finance should you wish to withdraw from the contract.
Yes/No
14. Are you obtaining a loan to pay for some of the purchase price?

For any funds you are providing at settlement we recommend you authorise your lender to draw on your account(s) to deduct funds for settlement.

Yes/No

 

If yes, provide the name of your finance broker / lender.

15. Have you notified your finance broker / lender of your purchase?

If yes, have you provided them with a copy of the contract of sale and section 32 statement?

Yes/No

 

Yes/No

16. Is any person who is not to be registered on the title(s) providing funds to assist with your purchase of the land? Yes/No

If yes, provide details.

About the land

17. What is the location on the plan of subdivision of the land?

Note: car spaces may be subject to a congestion levy.

See attached copy plan of subdivision. Highlight each part including the land, apartment/unit, any car space(s), storage lot(s) or other areas included in the sale.
18. What is your intended use of the land?

For example a dwelling or shop.

Is this the same as the current use?

Insert details:

 

Yes/No

19. Do you intend on:

  • leasing the property
  • residing in the property.

Note: if you are buying subject to a lease this lease may continue after settlement.

Do you require our advice about any lease matters?

If you reside at the property is this your principal place of residence?

 

Yes/No
Yes/No
Yes/No

Yes/No

If yes, land tax may be payable from settlement for the principal place of residence  you currently reside in if you are not selling that property.

20. Do you believe any of the information in the section 32 statement is incorrect? Yes/No

If yes, provide details.

21. Are boundary fences in reasonable condition?

Note – if you are concerned about the boundary locations we recommend you obtain a land survey.

Yes/No

If no – once the contract is signed you will be responsible at your cost for any necessary fencing works.

22. Is there a pool or spa at the property?

If yes – are barriers in place?

Yes/No

Yes/No

23. Do you have any reason to believe that the vendor has done any renovation works in the last seven years?

For example renovated a bathroom.

Yes/No
24. Has the vendor entered into any agreement with the local council to fund any works required to rectify any flammable cladding on any building(s) on the land?

See part 8B in the Local Government Act 1898 (Vic)

Yes/No

Settlement

25. Where would you like correspondence sent after settlement? The property or  insert other address.

Any questions

26. Please attach a list of any questions you have about your purchase. Yes/No

Information available from Consumer Affairs Victoria (CAV)

27. You can find information published by CAV  about buying real estate, owners corporations, renting and retirement villages here.

………………………………………………………………………………………
Signed by or on behalf of the Purchaser(s)

*Plan of subdivision showing the lots to be attached

*Client authorisation form to be completed and attached