risk-management.php

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.


 

28 June 2018

In Check Issue 79 | June 2018

Download PDF New requirements for some purchasers to withhold GST – 1 July 2018 From 1 July 2018 purchasers of certain new residential premises and potential residential land will be required to withhold the goods and services tax (GST) and pay it to the Australian Tax Office (ATO). Vendors of residential premises or potential residential […]

More
1 May 2018

Post mortem risk management

Good risk management includes analysing mistakes and learning from them. IWhat has a post mortem examination to do with risk management? A doctor conducting a post mortem thoroughly examines the deceased to try to determine the cause and manner of death. The results are also useful for research and educational purposes. Consider doing a post […]

More
1 April 2018

Conveyancing claims on the rise

What risk management practices are you doing to avoid a conveyancing claim? 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 is currently estimated to be in excess of $10 million. This represents an increase in both the number […]

More
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 […]

More
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 […]

More
4 September 2018

Retrospective changes proposed for residential ‘off the plan’ sunset clauses

Download PDF Table of contentsRetrospective changes proposed for residential ‘off the plan’ sunset clausesSunset clauses – details of the proposed amendmentsRetrospectivity trap for practitionersWhat you should do nowOther legislative changes proposed in the bill Retrospective changes proposed for residential ‘off the plan’ sunset clauses The Sale of Land Act Amendment Bill 2018 (Vic) (the bill) […]

More
25 June 2018

Security warning for PEXA users

Recent news reports and emails from PEXA have described a fraud involving the PEXA workspace. Any users of the PEXA workspace need to read this bulletin for tips on how to avoid this happening to them. The fraudster appears to have gained access to a subscriber’s email account and intercepted a change of password email […]

More
11 July 2017

Personal Property Securities Act 2009 (Cwlth) – background and key concepts

Published March 2012 – updated July 2017 The Personal Property Securities Act 2009 (Cwlth) (PPS Act) commenced on 30 January 2012. Since then LPLC has received claims every year for mistakes by practitioners in dealing with PPS Act issues. This bulletin contains background information about the PPS Act and key concepts. Table of contentsBackgroundKey conceptsSecurity […]

More
10 July 2017

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

Download PDF Published July 2016 – updated July 2017 The 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 2017 (Cwlth). This bulletin focuses on: options and rights to acquire company title interests indirect […]

More
10 July 2017

1 July 2017 amended CGT withholding payments for real property sales

Published June 2016 – 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 […]

More
21 September 2018

Risk management essentials for lawyer directors

Serving on a company board can be rewarding for practitioners in various ways. However, when taking on a directorship, including for a non-profit, you need to be aware of the risks including the potential for the separate roles of director and legal adviser to become blurred. Any lawyer director needs to consider whether they are […]

More
31 August 2018

Are your lender clients secure?

Are your lender clients secure? Failing to put in place proper security for lender clients was one of the most costly mistakes in our mortgage claims in the last policy year where the total mortgage related claims accounted for 19 per cent of the cost of all claims. We have recently updated our Keep managing […]

More
17 August 2018

What did they expect?

When sued by a client, the reaction from some practitioners is ‘What did they expect for what I charged?’ However, a court will give little regard to your fees when determining the extent of your retainer and whether you discharged your duty. You need to be clear about the scope of your retainer, irrespective of […]

More
10 August 2018

New ipso facto regime has commenced

The amendments to the insolvency regime in the Corporations Act 2001 (Cwlth) to restrict the rights of parties to enforce ipso facto clauses in new contracts came into effect on 1 July 2018. These clauses typically allow a party to terminate or exercise other contractual rights if the counterparty enters into an insolvency. Under the […]

More
27 July 2018

Confirm when discrete tasks are completed in general files

One risk of running ‘general files’ is failing to confirm in writing when your obligations in connection with discrete tasks are to be treated as concluded. If you fail to clarify this, you might remain ‘on risk’ for issues beyond the discrete task. In one claim, the practitioner acted for the owner of a nursing […]

More
7 May 2018

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’. ☐ […]

More
18 December 2017

Key Risk Checklist: Electronic property transactions – office management

Electronic property transactions – office management checklist Office policy content Below is a list of issues to consider when writing your office policy and recommended responses. ☐  Who will hold a digital signature? The digital signature is embedded in a USB. Preferably only partners have digital signatures. ☐  How a digital signature’s USB and pin […]

More
18 December 2017

Key Risk Checklist: Electronic property transactions

Electronic property transactions – matter checklist ☐  Is there an electronic transaction clause in the contract? ☐  Discussed with the client whether the conveyance can be done electronically or on paper. – Land Use Victoria has announced that all transaction will be electronic by August 2019. ☐  Client told consequences of conducting electronically. Any paper […]

More
12 December 2017

Key Risk Checklist: Solicitor’s certificates for borrowers or surety providers

Updated: December 2017 Solicitor’s certificates for borrowers or surety providers ☐  Allocate only one person in the office to give solicitor’s certificates. ☐  Confine the provision of a solicitor’s certificate to existing clients. ☐  Where the client receives the security documents before you, request they send you the documents well in advance of your meeting […]

More
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. Our blogs can be searched by area of law. Subscribe […]

More
24 July 2018

Keep 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 FiveAppendix Six Additional mortgage downloads Solicitor’s Certificate – Direct Borrower Solicitor’s Certificate – Third Party, Guarantor etc Translator’s Certificate Client acknowledgement […]

More
24 April 2018

Avoiding superannuation claims

Table of contentsIntroductionCommon themesSuperannuation related claims from 1 July 2015 to 30 June 2017Areas of lawSuperannuation checklistAppendix one Introduction Every year LPLC sees claims 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 extensive expertise […]

More
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 […]

More
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 […]

More
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 […]

More
6 April 2018

Risk video bite – Drafting

Presenter: Matthew Rose, Risk Manager, LPLC

More
2 March 2018

Risk video bite – Conveyancing

Presenter: Phillip Nolan, Risk Manager, LPLC

More
28 July 2015

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

Presenter: Miranda Milne, Chief  Executive Officer, LPLC

More
5 May 2015

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

Presenter: Justin Toohey, Deputy Chief Executive Officer, LPLC

More
24 March 2015

Risk video bite | Risks of intra-family transfers

Presenter: Miranda Milne, Chief Executive Officer, LPLC

More
4 September 2018

Retrospective changes proposed for residential ‘off the plan’ sunset clauses

Download PDF Table of contentsRetrospective changes proposed for residential ‘off the plan’ sunset clausesSunset clauses – details of the proposed amendmentsRetrospectivity trap for practitionersWhat you should do nowOther legislative changes proposed in the bill Retrospective changes proposed for residential ‘off the plan’ sunset clauses The Sale of Land Act Amendment Bill 2018 (Vic) (the bill) […]

More
15 August 2018

Vendor/supplier GST withholding notice

There is no prescribed form for section 14-255 supplier GST withholding notice. Below is a suggested form of notice practitioners are welcome to use or adapt.Page two of the notice contains some notes for its use.   Vendor_supplier GST withholding notice(PDF Version) | Vendor_supplier GST withholding notice(Word Version)    

More
21 December 2017

File note – meeting to advise about a guarantee

This file note is designed to be used by practitioners when they are advising third party guarantors and providing a solicitor’s certificate of their advice. Practitioners should review the file note template with the guarantee and/or mortgage documents before meeting with the client and make any necessary additions or changes to the typed file note […]

More