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.
What this means for land owners:
- No more certificates of title after settlement or after paying off mortgages.
- The public cannot lodge dealings on land without assistance from a property lawyer or conveyancer.
- People wishing to lodge a dealing over land must have their identity verified by the PEXA subscriber and must establish their right to deal with their land.
- Verification of identity involves an in person meeting with the PEXA Subscriber and inspection of identification documents.
- Establishing the right to deal with land involves providing evidence of ownership (e.g. current rates notice, land tax assessment etc).
Short-term letting – Updated Code of Conduct
The Code of Conduct for the short-term rental accommodation industry was updated on 28 May 2021. Landlords providing short term rental accommodation must comply with the Code of Conduct or face penalties of up 1,000 penalty units for corporate owners or up to 200 penalty units for individuals (one penalty unit is equal to $110).
The key elements of the Code of Conduct are:
- The Premises Register and the Exclusion Register will be created from 1 November 2021 which are expected to be maintained by NSW Fair Trading.
- Booking platforms (e.g. Air BnB) and letting agents advertising short term rental accommodation must ensure that the premises and the landlord are registered on the premises register.
- Landlords must meet numerous obligations (e.g. Compliance with planning laws; public liability insurance, be contactable at all hours and inform the owners corporation of the short term rental activity).
- Landlords must register themselves and the premises on the premises register.
- Short term tenants must comply with any by-laws and must not disturb neighbors.
- Landlords and tenants can all be registered on the exclusion register for breaches of the Code of Conduct.
- If a landlord or tenant is listed on the exclusion register, they won’t be able to enter into short term rental accommodation agreements.
Building Defects
The Design and Building Practitioners Act 2020 commenced in full on 1 July 2021.
These laws regulate designers of important parts of a building’s design (e.g. load bearing walls a These new regulations provide that:
- Building designers must be registered and be insured;
- Developers cannot apply for an occupation certificate until the principal certifier has received compliance declarations from each building designer involved in the design of the building;
- Building designers are required to provide declarations that their building design is compliant with the Building Code of Australia and with any other applicable codes;
- Persons carrying out construction work have a non-delegable duty of care to avoid economic loss caused by defects relating to or arising from construction work. This duty of care is owed to the land owner (or Owners Corporation);
- Land owners will be able to claim against the builder under this legislation.
COVID -19 Relief for Impacted Tenants Has Ended
On 28 March 2021, the NSW State Governments relief package for commercial tenants ended. Commercial tenants, who miss rental payments after this date, are no longer able to force a rent renegotiation with their landlord and landlords are no longer prohibited from taking action against the tenants.
COVID-19 protections continue to apply in respect of missed rental payments that occurred between 24 April 2020 and 28 March 2021.
Property Law Reminders
Businesses operating in premises owned by a related company should have a lease in place between the business entity and the related company landlord for compliance purposes.
Owners of buildings, except class 1a (freestanding residential homes) and class 10a buildings (e.g. sheds and car ports), must have an accredited practitioner inspect the building to obtain an Annual Fires Safety Statement annually.
Further information
The information contained in this article is general in nature and does not constitute legal advice. If you require specific advice or assistance on a particular property issue, please contact the Matthews Folbigg’s property team on 9635 7966.
Liability Limited by a scheme approved under Professional Standards Legislation Commission
For further information, please contact:
Anna Zdrilic
Principal
Level 7, 10-14 Smith Street Parramatta NSW 2150
PO Box 248 Parramatta NSW 2124
t +61 2 9806 7425
f +61 2 9689 3494
email: annaz@matthewsfolbigg.com.au
