Property Transactions

At Snedden Hall & Gallop our Property Law Team provides experienced advice in relation to a broad range of commercial and residential property issues. We are committed to providing professional expertise, effective solutions and personalised care for our clients.

Our clients include commercial and residential property owners, developers and contractors.

• Advising on Property Contracts
  

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  All property contracts must be in writing in order to be enforceable. A property contract can range from a relatively straight-forward standard form contract, to a more complex purchase of commercial property. Either way, the contract terms will set out both parties’ rights and obligations and therefore care must be taken to ensure they are understood.
  
  We can take you through the often-complex terms and conditions to ensure you understand the practical implications they have for you. Make sure you seek legal advice before entering a contract.
  
  
• Residential Conveyancing
  

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  If you are buying or selling your family home or an investment property, whether in the ACT or New South Wales, Snedden Hall & Gallop has an experience property team that can assist you with the whole process. This includes:
  

  • Advising about agent contracts
  • Ordering necessary reports required at the time of listing your property for sale
  • Preparing the marketing contract
  • Advising about contract terms and conditions
  • Negotiating the terms of sale
  • Exchange
  • Liaising with your financier about any advance, discharge or refinance
  • Liaising with the Revenue Office about the assessment and payment of stamp duty
  • Advising you about any loan arrangements you may be entering into
  • Advising about and assisting with Occupation Licences
  • Conducting necessary searches of services, rates and duties
  • Settlement
  • Liaising with the Titles Office about Registration of Title

  
  
• Easements and other Encumbrances
  

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  In the ACT we operate under a Crown Lease system which restricts the uses to which we can put land (see our separate item on “Planning” below). In addition to the Crown Lease, your property may become subject to an easement or encumbrance. Easements and encumbrances effect what you can do with your land. They are often recorded on the Title documents.
  
  Generally, an easement or encumbrance will arise as a result of legislation and may include:
  

  • Restrictions on who can own the land;
  • A right of access for services such as water, sewerage, etc
  • A right of passage for government authorities
  • Etc

  
  If you are concerned about what easements or encumbrances affect your land, and especially before entering a contract to buy land, you should seek professional advice.
  
  
• Building and Construction
  

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  Coming soon
  
  
• Commercial Conveyancing
  

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  Commercial property transactions can be highly complex. There are many nuances and pitfalls to navigate. It is essential that you work with an experienced legal advisor you can trust, and who can successfully guide you through the transaction process including:
  

  • due diligence
  • contract review
  • dealing with financiers
  • dealing with commercial tenants
  • negotiations between the parties
  • exchange and settlement

  
  
• Commercial Leasing
  

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  Every business needs a home. Most businesses lease their premises, rather than own them. Most commercial and retail leases are regulated.
  
  Our many years’ experience acting for both landlords and tenants, gives us the ability to anticipate the needs of both sides of the transaction which saves a lot of time and costs.
  
  Matters for consideration include:
  

  • Capacity of Landlord and Tenant
  • Disclosure Statement;
  • Obligations under the Leases (Commercial and Retail) Act 2001 (if regulated lease);
  • Guarantee (personal and bank);
  • Permitted use in Crown Lease;
  • Rent review;
  • Options for renewal, purchase, etc
  • Repair and make good obligations
  • Registration requirements for Lease.

  
  
• Planning law
  

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  As the ACT utilises a Crown Lease system, there are a variety of statutory documents and directions that affect what you can do with your land. The Territory Plan guides the ACT government’s zoning and regulation of the use of land. Zones include industrial, commercial, residential, etc.
  
  In addition to the rules set down in the Territory Plan, each property is subject to an individual Crown Lease which also imposes restrictions on the use of the land, among other things.
  
  For these reasons, anyone seeking to make use of their land must ensure they understand to what uses they are legally able to put it.
  
  Depending on the intended use, it may be necessary to apply to the ACT Planning and Land Authority (ACTPLA) for approval. This is because some uses are permitted without government approval, while others (such as some home businesses and various construction projects) require a Development Application.
  
  We can guide you through the planning process so that you understand the permitted uses for your property and the requirements for obtaining development approval if necessary.
  
  
• Guarantees
  

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  Increasingly, banks are asking for guarantees of business and personal loans and other financial arrangements. The role of the guarantee is therefore integral to the success of the financial transaction and the risk the guarantor bears is significant.
  
  Before you sign a guarantee make sure you seek legal advice about exactly what your liability is likely to be
  
  
• Rural Land
  

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  Coming soon
  
  

• I am running my business through my company and we are taking a lease over some shop premises. I do not want to have to personally guarantee the obligation of my lease. What can I do about it?
  

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  Most landlords that lease commercial property to commercial tenants require two forms of protection for their lease. The first is payment of rent in advance (probably three months’ rent) by the tenant, which would be paid by bank guarantee or by bond, as security in case there is a failure by the tenant to pay rent for any extended period of time. The second are personal guarantees from the directors of the tenant company. This is a generally accepted commercial practice in order to protect the landlord against the company not having the assets to pay outstanding rent. However, as the negotiation of your commercial lease is a contractual matter, it may be possible to negotiate a waiver of one or both of these two conditions.
  
  
• What reports do I need to obtain before entering into a contract?
  

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  In the ACT, sellers must obtain reports before offering their property for sale. This is not the case in all other states. There are a number of different reports such as building inspection report, pest report, strata records report (if applicable) and contamination report (if applicable).
  
  
• What is “cooling off” period?
  

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  It is a clause which gives the buyer a period in which to decide whether to proceed with the contract. The ACT Civil Law (Sale of Residential Property) Act provides that buyers of residential property are entitled to a “cooling off” period of 5 business days after contracts have been exchanged and deposits paid.
  
  
• When do I pay a deposit?
  

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  The deposit is usually 10% of the price. You are required to pay the deposit on exchange of Contracts. Sometime a seller will accept 5% or the payment of the deposit by way of Bond.
  
  
• What does exchange of contracts mean?
  

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  This refers to the date on which the contract signed by you is exchanged with the counterpart contract signed by the purchaser. On this day an owner becomes bound to sell the property and the purchaser becomes bound to buy it subject to any “cooling-off period”. Buyers should have insurance over the property from the date of exchange, even though they don’t live in it, or own it, until after settlement.
  
  
• What is settlement?
  

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  It is the day upon which the sale is made final; when the process of conveyancing is finalised and the buyer is able to take possession of the purchased property. This process usually takes about four weeks after contracts have been exchanged
  
  

• If I live in the ACT, which is a planned community, I presume that I do not have any easements over my property?
  

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  Many properties in the ACT have some sort of easement over them. Usually, it is something simple like overhead power lines at the back of the yard or sewerage pipes running through the property. These easements usually prevent you from building over the easement area. So, before you decide to build any type of structure, you must be very careful to check with the relevant authority before commencing.
  
  

• What is stamp duty?
  

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  Stamp duty is a State tax on property transactions. Stamp duty is calculated based on the purchase price and it is payable within 3 months of exchange of contracts but must be completed before settlement. However, if you are purchasing a property “off the plan” you can postpone payment of stamp duty for up to 1 year.
  
  

• One of the old service stations in my suburb has closed down and I see this as a very good investment opportunity to buy the land and build some housing. How should I approach this?
  

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  Firstly, you would need to check with the relevant development authority (in Canberra it is the ACT Planning and Land Authority) to find out if there are any conditions that would prevent you from buying the land or using it the way you planned. Places like service stations require you to rehabilitate the land, which would include pulling out the old petrol tanks and making sure the land is free from any environmental hazards. This would be a significant additional cost to your development. Furthermore, you would need to check the zoning of the land to make sure that you could build the type of development you want in the area. If the zoning is not compatible with your planned development, you could apply for a change to the zoning, but this would also be an additional a cost.