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NSW Supreme Court – When are executed lease documents binding

The recent NSW Supreme Court case of Thorn Australia Pty Ltd v Centuria Property Funds Ltd [2021] NSWSC 1271 highlights the necessity for caution and diligence when executing and exchanging deeds, especially in property matters.

The Court was asked to determine whether a prospective lessee who had signed and delivered deeds to a lessor was bound by the deeds. The Court found that although the lessee executed the deeds, provided a bank guarantee, made arrangements regarding access and making further payments, it was held that the lessee did not objectively manifest an intention to be immediately bound by the deeds. [...]  READ MORE →

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Mandatory Code of Conduct for Commercial Leasing

NSW Government re-introduces the National Cabinet’s Mandatory Code of Conduct for Commercial Leasing

On 13 August 2021, the NSW Gov­ern­ment announced it will rein­tro­duce the Nation­al Cabinet’s Manda­to­ry Code of Con­duct for Com­mer­cial Leas­ing man­dat­ing rent relief for eligible ten­ants impact­ed by Covid-19.

The Retail and Oth­er Commer­cial Leas­es (Covid-19) Reg­u­la­tion 2021:

  • will be extended until 13 January 2022 (previously due to expire on 20 August 2021)
  • requires the lessor to renegotiate the impacted lease with the lessee in accordance to the principles set out in the National Code of Conduct. The Code of Conduct requires landlords to provide rent relief in proportion with their tenant’s decline in turnover. At least 50 per cent of the rent relief must be in the form a waiver, and the balance a deferral.
  • prevents a land­lord from evict­ing or lock­ing out a ten­ant for cer­tain breach­es unless they have first rene­go­ti­at­ed rent and attempt­ed mediation.

The Reg­u­la­tion will apply to com­mer­cial and retail ten­ants with a turnover of up to $50 million who are impacted lessees, that is, they qualify for the COVID-19 Microbusiness grant, COVID-19 Business Grant or JobSaver Payment. [...]  READ MORE →

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Phasing out of Certificates of Title and the expansion of electronic conveyancing

Every day we read about the property market in Australia. Often it is about housing affordability, defects in high rise residential developments or the relentless impact of technology on the way we do business in this sector.

In this month’s article we cover some of the recent changes to property law in NSW and what impact they will have

Phasing out of Certificates of Title and the expansion of electronic conveyancing

On 11 October 2021, all certificates of title will be cancelled and all dealings will be lodged electronically over an electronic property dealing lodgment network such as PEXA. PEXA is an electronic conveyancing platform, which at present, is the most widely used electronic lodgment network in NSW. It has recently listed on the Australian Stock Exchange. [...]  READ MORE →

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Building defects in strata buildings and the legislative safeguards

Building Defects and Part 11 Protections for Strata Owners

We have previously written an article about the new duty of care protection in favour of property and strata owners, which is available under the new Design and Building Practitioners Act 2020 NSW (DBPA). Basically, it establishes a new duty of care against various building practitioners, retrospectively, covering losses arising from the last 10 years or so. However, that is not the only remedy available (of course). The issue of building defects have been around for a very long time and the legislation have been changing constantly, especially for strata buildings. [...]  READ MORE →

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COVID-19 Contracts and Frustration

Contracts and Frustration by COVID-19- Important decision  

Recently, the New South Wales Supreme Court (NSWSC) in Dyco Hotels Pty Ltd v Laundy Hotels (Quarry) Pty Ltddecided that a contract for sale was not frustrated by pandemic trading restrictions.

Lockdown and trading restrictions imposed by the government in response to COVID-19 has inevitably given rise to parties in sale contracts to claim frustration when a business or commercial venture is impacted. In order for a contract to be frustrated, the frustrating event must give rise to a “fundamental commercial difference” between contemplated and actual performance or to a “fundamentally different situation” arising for which the parties made no provision “so much so that it would not be just in the new situation to hold them bound to its terms” (Davis Contractors Ltd v Fareham Urban District Council [1956] AC 696 at [64]). [...]  READ MORE →

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Frustrated Leases

Frustrated leases – Important recent case for Landlords and Tenants

Recently, the New South Wales Supreme Court (NSWSC) in Gazcorp Pty Ltd v Woolworths Ltd [2021] NSWSC 308 demonstrated that whether a lease is frustrated by changes in planning laws or approvals should be carefully considered in each case.

Until Gazcorp v Woolworths, the courts had generally only declared in dictum that the doctrine of frustration applies to leases as it does contracts (Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd; Willmott Forests Ltd (rec and mgrs. Apptd) (2012) 91 ASCR 182 at [41]). [...]  READ MORE →

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Construction Laws in Strata Communities

Construction laws and processes affecting strata and community schemes

Recently, we have received various enquiries about construction laws, proposed design and construction contracts and building contracts especially those affecting strata schemes. Basically, complex construction works are needed to be done involving the owners/developers (more commonly called Principals in the realm of construction laws), architects, builders, subcontractors, surveyors, superintendents etc. What do all these mean? We cover some of the basic issues below. [...]  READ MORE →

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Strata – COVID Stay at Home Orders

Covid stay-at-home orders and what is “at home” for strata lot owners/occupier?

All of you should (or are deemed) to know, there are various health orders currently in-force due to Covid. We often hear the requirements to “stay at home”. But it is a timely reminder to consider again what is a home for strata lot owners or occupiers?

As most strata owners should know, they own the “airspace” insider their unit/apartment but also co-own the entire strata building and the common properties with the other owners as per their unit entitlements. So, is the nice looking patio downstairs a part of your home? Normally, yes. But please, use some common sense, not for covid / isolation purposes! The Parliamentary intention is that people should isolate at home, as much as they can away from other people etc. Good luck! [...]  READ MORE →

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NCAT Tribunal and what it can do for you in strata?

We often hear about “NCAT” and “Tribunal” proceedings in the land of strata. Ever wondered what it can do for you? It sounds difficult. But it should not be, really! We know many pretend to be Supreme Court judges in NCAT matters but that is not entirely correct. It can get complicated especially with building, construction and defect disputes etc, but not the everyday nuisances and issues!

Below is a broad overview of what NCAT can do for you (and what it can’t):

Noise transmission – We have various practical packages to deal with this, before or at the NCAT level. Like anything else, you will need evidence. We will guide you as to what is needed. We recognise the parties are often neighbours. So, we always strive to settle the matter amicably using our specialist negotiation skills without resorting to the Tribunal. Smoke drift – Whilst unit owners and occupiers are, broadly speaking, free to do what they want within their own unit as long as it does not interfere other people or property, second-hand smoke should not drift from one unit into another other. At the same time, smokers that are doing the right thing should not be subject to fictitious or vexatious claims. We have fair and practical solution packages for both sides in the negotiation and dealing of Tribunal matters. We are also currently lobbying the NSW Government to provide assistance in the matter. One of the solutions that we are advocating is the need for an on-demand investigative service using smoke monitors and video evidence (which should further simplify the dispute process). Common property and access to lot – Water penetration from upstairs, or having an issue with past works, common property and/or its use? Come speak to us, whether you are a lot owner, occupier, strata manager or otherwise. These matters can constitute an actionable nuisance, hazard or interference against a lot. So, it needs to be properly managed as NCAT can make rectification and compensation orders. Renovation and development works/plans – Lot owners/occupiers, please stop making unauthorised changes to your lot and/or common property! We know it can be very tempting to put up a partition wall (who will know, right?). But if there is a problem (say, fire or other building issue), it may well void your insurances and you may be exposed to a string of law suits. If the proposed work is relatively significant, we take a no non-sense approach to get it approved within the scheme and via NCAT if need be. Animals/Pets – We are aware of the recent Cooper case in the NSW Court of Appeal which in essence is against a blanket animal/pet ban. So, you can’t ban them just for the sake of banning them for no good or apparent reason. It is not a blank cheque for 101 Dalmatians to start roaming free everywhere! We have an improved animal by-law including a “common sense” application form and a set of reasonable conditions. If need be, we can even assist you in a GoFundMe campaign to take it up all the way back to the Court of Appeal again. By-law disputes – Frankly, we see a lot of poorly drafted by-laws. Or if they are drafted, they are either way too long/complex or way too short. Just because there is a by-law in place does not mean it is valid or enforceable. That’s why NCAT routinely hears applications about the revocation, change or invalidation of by-laws. Yes, we know strata law can be highly technical. But our drafts and approach are just simpler and better. Strata / community scheme’s management problems – We come across a lot of these. Some are real and have merit but some are just not. NCAT can make a determination regarding:
    • meetings and decisions of the owners corporation (including approvals or refusals), the strata committee (including individual members) and also the strata or building managers;
    • financial management (or mismanagement) of the owners corporation’s funds;
    • (alleged) rogue owners, occupiers and strata managers and other parties;
    • people that have no regard to others, blatantly breaching the by-laws or other laws etc.

    We have strong experience in this area of dispute resolution and have various packages to support the quick identification and resolution of problems. Sometimes, an email or phone call from us would just resolve these. NCAT has wide ranging powers in the above matters, including invalidation of resolutions, requiring further meeting/s, alteration of contributions, removing a person from office (including a strata or building manager) etc. We streamline our dispute resolution process as we always have NCAT proceedings in mind (so, the work would not get doubled up).

  • Building and construction / defect issues – Now these are the most complex type and they often get appealed to the Supreme Court or the Court of Appeal. So, if you have an issue in this area, it is best to seek legal advice as soon as possible. NCAT routinely hears these matters including statutory warranties under the Home Building Act. They have a jurisdictional claim limit of $500,000. If the claim amount is more, it will go to District or the Supreme Court. We have a huge litigation team here for these and other non NCAT matters.
  • So, come and speak to us if you have any strata issues. You may well be surprised at how fast, structured and effective our resolutions are! [...]  READ MORE →

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VOI requirements and processes for Property, Strata and Community Schemes Participants

You may have wondered why lately there is a greater emphasis on providing identification documents compared to the prior years. This is due to the continuing evolution of the verification requirements. Also, the recent disciplinary decision of Youssef v NSW Legal Services Commissioner [2020] NSWCATOD 85 serves as a cautionary tale to all property and strata participants regarding the importance of the matter when dealing with land transactions. They can involve:

  1. Transfers of land;
  2. Leases;
  3. Caveats;
  4. Change of by-laws;
  5. Plans of subdivision;
  6. Management statements and development contracts (including their amendments);
  7. Mortgages;
  8. Easements, property developments and redevelopments; and
  9. Basically anything that changes a notification on the title of a property or common property.

We have set out briefly below on what is involved so you can better understand why your lawyer or bank manager may ask you for the various documents next time you have a transaction. And of course, if you have a matter with us, we will let you know: [...]  READ MORE →

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NSW stamp duty for new homes under $800K eliminated temporarily

Stamp duty can add a substantial amount to the price of buying a property. That can be as much as, or even more than, five per cent of the purchase value, depending on where you are buying.

The NSW government has temporarily axed stamp duty for new homes under $800,000, as a way to support first home buyers and the construction industry.

NSW Premier Gladys Berejiklian recently announced that the NSW government will temporarily remove stamp duty on newly built homes valued at under $800,000 and will raise the threshold for stamp duty on vacant land from $350,000 to $400,000 from 1 August 2020 for a period of 12 months. [...]  READ MORE →

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New! Key Changes to the Covid Leasing Rules for Landlords and Tenants

The Retail and Other Commercial Leases (COVID-19) Amendment Regulation 2020 (NSW) (the Amendment) commenced on 3 July 2020 and changes some of the rules affecting retail/commercial landlords and tenants when it comes to the impact of COVID-19.

Background

The Retail and Other Commercial Leases (COVID-19) Regulation 2020 (NSW) (the Regulation) commenced operation on 24 April 2020.  The Regulation gave effect to the National Cabinet Mandatory Code of Conduct for Commercial Leases (the Code).

Key aspects of the Regulation include: [...]  READ MORE →