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Property | Mortgages

Property and mortgage related work is often technical and time critical and combined with ever-increasing time and cost pressures it is not surprising these areas are each a major source of claims. These areas usually involve a client’s most valuable asset and so the stakes are high.  Together property and mortgage claims accounted for 33 per cent of LPLC’s total claims cost in the 2015/16 insurance year.

Property and mortgage practitioners need to be aware of the risks involved in these areas of practice and put in place systems and processes to help manage them. 

LIV has prepared four conveyancing checklists to assist practitioners manage conveyancing files as well as other numerous articles and publications set out below.


 

27 March 2017

In Check Issue 74 | March 2017

Table of contentsWhat is new on LPLC’s website?What is happening in cyber risk?Are you ready for the DBDRV?Common GST questions – GST and adjustments for sale of commercial property2017 Risk Management seminars2017/18 Insurance renewalsLaw Institute Journal articles What is new on LPLC’s website? Cyber security page We have a new risk management page dedicated to […]

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1 March 2017

Ticking the box

There are many benefits to developing and using checklists.  They provide a framework for good supervision, they quality assure work and they provide good staff development. Whether you are a transactional lawyer or a litigation lawyer, the current legal environment is more complex and fast paced than ever. Whether doing high level legal thinking or […]

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1 March 2017

When tax needs to be raised

Do you help your clients make informed choices about tax issues? Every year the Legal Practitioners’ Liability Committee receives notice of claims where one of the issues was the alleged failure by a practitioner to raise tax issues with the client. Family law In one claim a practitioner acted for a husband in a matrimonial […]

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1 February 2017

Misplaced trust

There are some important steps to take when handling trust money. The LPLC sees numerous claims against practitioners who are alleged to have distributed trust money to a party not entitled to receive it. For risk management purposes, two critical points in time are when a client instructs a practitioner to receive money on trust […]

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7 December 2016

In Check Issue 73 | December 2016

Table of contentsCyber risk awareness for lawyers and clientsPPS – Raising awareness – how accurate is your registration?Termination of contract noticesA new GST checklistA new risk managerCommon GST questionBook now for our 2017 Risk Management SeminarsLaw Institute Journal articlesOffice closure over Christmas and New Year Cyber risk awareness for lawyers and clients We regularly hear […]

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6 November 2016

CGT withholding payments – practical examples

Updated July 2017 Table of contentsIntroductionTaxable Australian real property acquired directly from registered proprietor(s)LeasesIndirect Australian real property interestsOther issuesDeceased estates and trustsGSTFurther information on the ATO website Introduction This bulletin contains practical examples of how the withholding requirements, which commenced 1 July 2016 and were amended with effect from 1 July 2017, work. For more […]

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6 July 2016

Amended CGT withholding payments for options, company title interests and indirect Australian real property transactions

Updated July 2017 Table of contentsIntroductionOptions and rights to acquireCompany title interestsIndirect Australian real property interestNon-portfolio interest testPrincipal asset testResidency declarationsMembership interest declarations Introduction This bulletin contains information on the withholding requirements which commenced on 1 July 2016 as amended in June 2017 by the Treasury Laws Amendment (Foreign Resident Capital Gains Withholding Payments) Act […]

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2 June 2016

1 July 2017 amended CGT withholding payments for real property sales

Updated July 2017 Table of contentsKey pointsIntroductionBackgroundKey obligationsExceptionsAssets which are caughtMarket valueWhat to do when acting for a vendorWhat to do when acting for a purchaserATO forms and information Key points Amended withholding requirements for contracts of sale of real estate worth $750,000 or more from 1 July 2017. All purchasers of such real estate […]

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24 September 2014

New ID law means mortgages could be void

Strict requirements for mortgagees to take positive steps to verify the identity of borrowers were introduced in Victoria on 24 September 2014. Similar requirements are already in place in Queensland, New South Wales, South Australia and Western Australia. The Transfer of Land Amendment Act 2014 (Vic) received Royal Assent on 23 September 2014 and commenced […]

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23 September 2014

Amended section 32 statement

Table of contentsKey pointsAmending legislationDue diligence checklistNew obligationsWarning!Other mattersTransitional provisionsBeware! LPLC recommendations Key points In October 2012 Consumer Affairs Victoria (CAV) released a discussion paper about amending section 32 of the Sale of Land Act 1962 (Vic). In May 2013 CAV released an options paper setting out the CAV proposed amendments and suggestions by stakeholders. CAV […]

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15 December 2017

Clearance certificate questions keep coming

LPLC receives enquiries most weeks about the Federal Government foreign residents withholding regime with many practitioners being referred to the following three LPLC bulletins for the answers to their questions. 1 July 2017 amended CGT withholding payments for real property sales Amended CGT withholding payments for options, company title interests and indirect Australian real property […]

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10 November 2017

Stop and think about loan agreements

When a client insists on entering into a risky loan agreement, it is essential to step back and think about whether the client has made an informed choice and you have documented their instructions and your advice. In one claim, the practitioner acted for a lender regarding a loan to a property developer. The practitioner […]

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20 October 2017

Time to retire retirement village claims

Since 2013/14 LPLC has seen 18 claims involving aged care facilities and retirement villages. The current estimate of the cost of these claims is in excess of $4million. Claims arise in the three main areas of: buying and selling retirement villages or aged care facilities advising on retirement village contracts for residents drafting wills. With […]

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13 October 2017

Conveyancing resources

Property and conveyancing claims are the most numerous and expensive for 2016/17. One worrying trend is that the number of large conveyancing claims exceeding $1million have increased by 20 per cent compared to 2015/16. This is one reason LPLC focused on conveyancing claims at the 2017 Risk Management Intensive in a session titled ‘Conveyancing done […]

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15 September 2017

Do I have a conflict?

LPLC regularly receives calls from practitioners seeking guidance about a potential conflict when acting for both the vendor and purchaser of real estate. LPLC also receives claims every year where a practitioner acted for more than one party. In a recent claim a practitioner was instructed to just prepare a section 32 statement as the […]

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16 August 2017

Key Risk Checklist – Conveyancing resources

    LPLC Resources Comments Checklists: Sale of land – questions for the vendor Purchase of land – questions for the purchaser Property websites and comments Tax issues GST LPLC Face to face verification of identity checklist LPLC has posted numerous blogs about property law issues. You can find our blogs here. You can search […]

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8 August 2017

Key Risk Checklist: Sale of land – questions for the vendor

Sale of land – questions for the vendor   Instructions ☐  Please circle yes or no as applicable. ☐  Please provide the additional information as indicated e.g. a copy of your title(s). ☐  If you do not know the answer or are unable to provide the additional information please insert the words ‘Not Known’. ☐ […]

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19 October 2016

Key Risk Checklist: Advice on equity release products

While the following checklist is not exhaustive, it is designed to prompt you to consider the many dimensions of these transactions. The checklist may be copied for ongoing use. Advice on equity release products Client: Matter: Taking instructions Explore with the client: ☐  Did the client obtain financial advice before seeing you? If not, recommend the […]

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19 October 2016

Key Risk Checklist: Amadio Checklist

While the following checklist is not exhaustive, it does draw attention to the key areas that many practitioners overlook in Amadio transactions. The checklist may be photocopied for ongoing use. Amadio Checklist Client: Matter: ☐  Allocate only one person in the office to give practitioner’s certificates. ☐  Confine the provision of a practitioner’s certificate to […]

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16 August 2016

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

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 […]

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6 November 2017

Looking after leases

Table of contentsIntroductionThe best risk managementThe problem areasPPS ActRetail leases and essential safety measuresLPLC Tenant’s Practitioner ChecklistLPLC Landlord’s Practitioner ChecklistAppendix OneAppendix Two Introduction Looking after leases contains details of claims, relevant cases and legislation affecting retail leases. It is designed to raise your awareness of common problems in commercial and retail lease transactions, and help you […]

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25 September 2017

Claim free conveyancing

Additional conveyancing download: Default notice Table of contentsIntroductionThe causesThe most common mistakesLPLC Vendor’s Practitioner ChecklistLPLC Purchaser’s Practitioner ChecklistAppendix One: Suggested form of letter to client if requested to prepare a section 32 statement in a hurryAppendix Two: Owner builder obligationsAppendix Three: Rescission NoticeAppendix Four: Owners corporation certificate issues Introduction Claim free conveyancing has been produced […]

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11 May 2017

Know your limits

Table of contentsIntroductionLessons from the claimsTime limits most commonly missedClaims examples Introduction With the proliferation of time limits in legislation today missing limitation dates is a mistake that occurs in many areas of the law. The reasons for missing time limits are varied as are the potential repercussions. Sometimes it is a lack of knowledge […]

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17 October 2016

Managing mortgage risk

Table of contentsAdditional mortgage downloadsIntroductionAmadio claimsImprovident transactionsMortgage fraudNo or inadequate securityAdvice on equity release productsLPLC Checklist: Advice on equity release productsTaking instructionsThe effect of the transactionIssues of duressLPLC Amadio ChecklistAppendix OneAppendix TwoAppendix ThreeAppendix FourAppendix Five Additional mortgage downloads Solicitor’s Certificate – Direct Borrower Solicitor’s Certificate – Third Party, Guarantor etc Translator’s Certificate Client acknowledgement Introduction […]

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13 September 2016

Saving superannuation claims

Table of contentsIntroductionCommon themesSuperannuation related claims from 1 July 2011 to 30 June 2015Areas of lawSuperannuation ChecklistAppendix One Introduction LPLC has seen numerous claims against practitioners involving superannuation funds. Claims sometimes arise because the practitioner does not have sufficient knowledge or experience with superannuation matters. Practitioners who regularly act in this area will agree that […]

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28 July 2015

Risk video bite – Engagement letters – what you will do and what you won’t

Presenter: Miranda Milne, Chief  Executive Officer, LPLC

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5 May 2015

Risk video bite | Solicitor’s certificates – why are you borrowing the money?

Presenter: Justin Toohey, Deputy Chief Executive Officer, LPLC

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24 March 2015

Risk video bite | Risks of intra-family transfers

Presenter: Miranda Milne, Chief Executive Officer, LPLC

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