Conveyancing – Content Hub

If you’re looking to build your own home or at least be an active participant in the construction, you will have to go through the process of obtaining an Owner-Builder permit. This also means that you’ll have to follow a ton of different legal requirements, many of which change depending on what state and territory you live in. Sound complicated? Don’t worry, we’re here to figure it out for you with this guide to owner-builder legal requirements.

What do you need to know about Owner-Builder legal requirements?

Why is this so important? Well, first, you’ll have to consider what could happen if there weren’t any legal responsibilities for the construction. The possibilities are scary. If you employ an unskilled builder, they could build a poorly-made house on a lousy foundation that could weaken or collapse over time. An unscrupulous owner-builder could employ subcontractors or labourers in a dangerous working environment, potentially causing a lot of physical harm. So, you’ll have to work with legal requirements that ensure that the environment is safe, the owner-builder practices safe building practices and that the owner-builder is properly insured.

Requirements before and during construction

So, what are the legal requirements before and during construction? First, you’ll have to have detailed plans drawn up by a professional. Those plans then need to be submitted, along with any required governmental forms (like a Bushfire Assessment, a Statement of Environmental Effects or a Building Sustainability Index) to make for a Development Application, or a DA. Make sure you have everything you need before you submit the DA – any missing document can make for a legal nightmare. Once that is approved, you’ll have to apply for an owner-builder permit. You’ll need to be 18 or older and the owner of the property, and you’ll have to confirm that you’ll be living in that home. There will be a fee for the application, and you might have to provide legal proof that you actually can work on the property or take an owner-builder course. Following that, you’ll need a Development Consent or Complying Development Certificate, and you’ll have to schedule appointments with inspectors to check out the building. Don’t forget, all of the legal responsibility during construction is on you. You have to make sure you use only licensed tradespersons and get all the right contracts drawn up, and you’ll have to have all of the right insurances.

Land surveying must be done before construction begins / Source: Statiker

Requirements after construction

Another thing to consider – there are plenty of legal requirements you’ll have to deal with after construction is done. You may have to take out Statutory insurance or a Statutory Warranty, and you’ll need to get council approval before you actually move in.

Does your project need council approval?

You may think that a project is so minute that it doesn’t need council approval; however, most projects do require you to gain approval. Some projects that need approval that you may not be aware of are as follows:

If you plan to build decking that stands 60cm or more above the ground, you should seek approval.
As a significant building structure, a covered patio may need council approval.
A carport might need approval if the floor area is greater than 20 square meters. This is the case if you live in the suburbs or in an urban area.
If you plan to build a shed and use it as a house, you need to seek approval first.
You may be curious what deems it necessary for a project to require council approval. This is based on various factors such as:
Does the structure change the appearance of your home?
Will the structure possibly cause damage to the environment or cause soil erosion?
How safe is the structure?
How hygienic is the building?
How does my project affect neighbouring properties?

Contact local builders

These reasons are the main ones that determine depict whether building regulations are established. A council determines the regulations by factoring in what makes for safe construction. This means that even if the deck you plan to build is only 60cm in height, it may still present itself as a threat if it’s not constructed properly or if there is a lack of sturdy fencing around it.

There are instances where the prospective building project may be excused from the process of filling out a development application, also called a DA application. On the contrary, there are other instances where you must fill out an application for a home extension or a new home, but you may be eligible for the “fast track” building application approval. Since inquiring with the council doesn’t cost you, don’t hesitate to ask about council approval for your project. The fee for getting council approval for your building project is typically reasonable and directly relates to the scale of the project and also the cost of it. To avoid problems, you should always consult with your local council prior to beginning a project.

The Australian government deliberately developed PEXA so that electronic settlements do not take place until the solicitors representing property buyers have filed their details with the (OSR) Office of State Revenue online system.

Electronic conveyancing defined

Electronic conveyancing is a national system that permits for an automatic completion of a property sale or purchase by uploading the entire documentation, and electronic funds transfer into the PEXA system.

Clients cannot automatically log in to the E-conveyancing system to obtain details of their particular conveyancing transaction progress. The Property Exchange of Australia (PEXA) developed the system to streamline and monitor all conveyancing transactions.

eConveyancing minimises the manual paperwork and processes associated with property transactions by allowing the legal parties to carry out the settlement online. The system enables clients to file documents and financial agreements electronically. eConveyancing reduces the risk of delays and errors giving customers greater successful, prompt settlements.

The regulatory structure in conveyancing

Electronic conveyancing legislation was amended in the 2015 Property Amendment Bill of the (SA) Real Property Act 1886. The revised act and the launch of E-Conveyancing in South Australia commenced on 4 July 2016.

ARNECC, the Australian Registrars’ National Electronic Conveyancing Council, is an organisation involved with the Registrars from all Australian States, developed the national regulatory law for electronic conveyancing.

Two sets of rules made include:

The (MPR) Model Participation Rules govern the connection linking the (ELNO) electronic lodgment network operator and participants, such as solicitors.
The (MOR) Model Operating Requirements manage the connection between ELNO and the land title registry.

The activities and tasks of lawyers opting to use e-conveyancing work under the ECNL and the MPR, governance. In South Australia, version 4 of the MPR and MOR already began operations in the SA Registrar-General office and commenced on 27 May 2017.

Once adopted by a particular authority, the MPR and the MOR essentially become the Operating Requirements and the Participation Rules, respectively.

What are the advantages of eConveyancing over hiring a lawyer?

If all the parties involved in a property transaction have subscribed to PEXA then e-conveyancing process involving stamp duty payment, lodgement of settlement records, transfer documents and funds takes place electronically.

This happens if all participating parties in the transaction agree. This e-process could potentially save you about $200 in transaction fees alone. The major setback faced by clients today is the few PEXA subscribers.

However, more companies have slowly begun migrating to the automated system. The advantages experienced by e-conveyancing include:

Decreased transaction costs – Solicitors and conveyancers will no longer have to pay extra fees passed on to their clients. This will bring a significant reduction in overall transaction costs.
Easier use – Excessive paperwork no longer applies for lodgment at different Forms will no longer need physical lodging at venues. All documents require digital signatures.
Regular updates – Clients receive conveyance-processing updates in real time through text messages or email.
Electronic transfers – This is from the solicitors provide printed e-receipts for all the transfers drawn in the settlement process.
Quick transactions – You can buy or sell your home faster than in a paper agreement.

Costs involved

With the new conveyancing system, one of the main concerns faced by the stakeholders was the time involved in the preparation of documents. This process alone cost clients huge transaction fees and expenses involved in real estate contracts.

It is crucial that you know all these costs and budget for them accordingly. It is disastrous if you do not plan for all possible property transaction expenditure.

Costs and operating expenses arise in different areas of the business deal. Some may not seem obvious or expected. Typically, you should set aside some cash when buying property for the following costs:

Any loan charges payable for obtaining a mortgage
Registration fees (Payable at the Lands Titles Office)
Stamp duty
Search costs
Property rates and taxes
Minor extra costs and conveyancing fees
Costs of moving

You may incur additional costs involved in your particular transactions. Ask your conveyance official for details of the entire purchase before proceeding into the contractual detail.

Individual conveyancing, is it possible?

Unless you have a thorough understanding of conveyancing and precisely know what to do; you can enter into a property transaction without representation. However, here is the downside of self-representation; you cannot expect any technical support from the other party.

If you make any errors, the settlement may delay until you fix it, or worse still, have the other party terminate the entire contract. If you considering representing yourself in the conveyancing deal, carefully examine the list of tasks and tick those that you can handle individually.

Interestingly, not all property agents carry out conveyancing on their own when performing personal transactions. Conveyancing is a professional skill. To be safe, it is best to engage an expert for a smooth, faster transfer of property.

Contact local conveyancing experts

Do you require a solicitor?

Registered conveyancers provide expert skills involving conveyancing work. You may not need to hire an attorney for your property deals. Some conveyancers have complete certified solicitors education. The majority of practicing lawyers have the primary, tertiary education in conveyancing.

In fact, local law firms employ registered professional conveyancers to carry out their conveyancing jobs. A conveyance expert must provide proof of Membership of the AIC as an assurance of professionalism.

Conveyancers or solicitors, who’s cheaper?

When these two professional services collide, both conveyancers and solicitors provide consultant, expert advice and charge for their services accordingly. Frequently, the fees charged reflect the bulk of the contract.

This is common whether you either procure the services of a registered solicitor or hire a conveyancer. The real distinction is that conveyancers provide expertise in this particular field whereas lawyers handle several areas of the law.

As with nearly all business costs, you will end up paying for the services required. Therefore, a professional conveyancer charges slightly higher fees for their swift expert assistance. A registered and certified conveyancer provides peace of mind, knowing all your transactions will go through smoothly.