Latest Legal Blogs : property law
Joint Ownership of Property and SMSFs
Purchasing a property in a self managed superannuation fund (SMSF) can be a very attractive option for a number of reasons. But what happens if your SMSF does not have enough funds to purchase a property outright? Navigating the rules of the Superannuation Industry (Supervision) Act 1993 (SIS Act) can become a minefield when purchasing a property in an SMSF. Breaching the rules can have unintended consequences and bring about hefty penalties, or worse, a prison sentence. Before you commit to purchasing a property in your SMSF, you should remember these things:- Can I purchase the property in my SMSF jointly with another party? The short answer is yes, however joint acquisitions of property must be done on an arm’s length basis. The following are potential co-owners:- Individual This person might be you or another third party such as a friend that has enough cash to fund the purchase. With another SMSF Two SMSFs can purchase a property together a property as tenants in common. What share in the land is up to the SMSFs. Any rent as well as costs and expenses are then applied according to these percentages. Unit Trust Commonly, a unit trust would acquire the property and the SMSFs would acquire units in the trust. If your SMSF is purchasing a property jointly with another individual or SMSF, you it is advisable to enter into an agreement that records the arms’ length nature of the relationship and includes terms about what happens if one party wants to sell or buy the party’s share or if a Trustee dies or if an SMSF is wound up. Can I purchase the joint owners’ share in the future? Let’s say for example, Fund A runs a mechanic business and purchases a commercial property as tenants in common in equal shares with SMSF, Fund B. The members are related. Generally, section 66 of the SIS Act prevents an SMSF acquiring an asset from a related party of the fund. An exception to this is the Business Real Property Rule (BRP Rule). The SMSFs should enter into a Lease with Fund A’s business to comply with the BRP Rule which will allow Fund A to purchase their parents half of the property in the future. Keep in mind that if for example the property is a residential property then future acquisitions (from related parties) is prohibited. What other options does my SMSF have where it doesn’t have enough cash to buy something? The SIS Act prohibits SMSFs borrowing (except in very limited circumstances). The SIS Act also allows Limited Recourse Borrowing Arrangements which involve the SMSF trustee taking out a loan from a third party lender. The trustee then uses those funds to purchase a single asset to be held in a separate trust. As the name suggests, if the SMSF defaults the lender's rights are limited to the asset held in the separate trust. This means there is no recourse to the other assets held in the SMSF (the intention being to preserve retirement benefits for their retirement). LRBAs are not for everyone and we strongly recommend that you obtain advice before entering into one given there are a number of complexities. It is also important to ensure that trustees and advisors understand the correct timing and procedures for implementing one. You should obtain specific advice on the Duty and Land Tax implications with respect to the structure of the borrowing and all transactions contemplated by it. You should also ensure that you have obtained advice of the taxation implications of the arrangement as these can have significant consequences for taxes such as stamp duty, CGT and GST. Before you do anything you should ensure you have letter of offer from a financial institution before you go to the expense of setting up the necessary structures. The big four banks to do not lend to SMSFs. If you cannot find a lender it is possible for related party to obtain a loan and then in turn act as non-recourse lender to the SMSF trustee. The commercial terms must be arms-length terms. The ATO has publishes annually “safe harbour” guidelines to make things clearer. Importantly LRBAs that do not meet the safe harbour terms fully will not automatically be deemed to be dealing on non arm’s length terms. Rather the onus will shift to the trustee to demonstrate that those LRBA terms were entered into and consistent with an arm’s length dealing. If you require any assistance in implementing an LRBA or co-ownership arrangement please contact us.
Attention - Landlords and Tenants of Commercial and Retail Leases in Queensland
On 28 May 2020 the Queensland Government passed the Retail Shop Leases and Other Commercial Leases (COVID-19 Emergency Response) Regulation 2020. The Regulation has retrospective effect from 29 March 2020 and ends on 30 September 2020. The implementation of this Regulation is Queensland’s way of making the Mandatory Code of Conduct for SME Commercial Leasing Principles during the COVID-19 crisis (“National Code”) law. The purpose of the Regulation is twofold: To mitigate the effects of the COVID-19 emergency on landlords and tenants by giving effect to the good faith leasing principles set out in the National Code; and To establish a process for resolving small business tenancy disputes and affected lease disputes. What is an affected lease? The Regulation provides that a lease of a premises is an affected lease if it is: A retail shop lease; or A prescribed lease (which is a lease other than a retail shop lease, under which a leased premises are used for carrying on a business) such as a commercial lease. In addition to the nature of the lease, there are also some additional qualifications ought to be met. Those are: On the commencement of the lease, or an agreement to enter into the lease, is binding on the lessee, whether or not the lease has commenced; The lessee under the lease is an SME entity (tenants with a total turnover of less than $50m); The lessee, or an entity connected with, or an affiliate of the lessee, is responsible for employing staff for the business, is eligible for the jobkeeper scheme. Most farming business leases, pastoral leases and agricultural leases are excluded from the operation of the Regulation. The question most have is how the Regulation changes what you can and can’t do under your lease. Can I take legal action if my tenant fails to pay rent or outgoings or doesn’t open for business between now and 30 September 2020? If the leases premises fits the definition of an affected lease then the answer is No. Landlords and tenants must cooperate to mitigate the effect of the COVID-19 emergency. However, parties to an affected lease may enter into an agreement (such as a Deed of Variation of Lease) which is inconsistent to the Regulation, in which case the provisions in that agreement will apply. So for example, an agreement is entered into which provides for a reduction in rent and the tenant fails to pay the reduced rent, then the landlord is permitted to take legal action to recover the unpaid rent. My lease provides for a fixed percentage rent review on 1 July, 2020. Can I apply this? If the lease premises fits the definition of an affected lease then the answer is yes, but not just yet. The Regulation has frozen rental increases until 30 September 2020. If the lease provides for a review of rent during the response period, the landlord may review the rent under the lease but must not give effect to an increase in rent until the response period ends. The Regulation gives the following example: The landlord is entitled, on review of rent under the lease, to increase rent on 1 July 2020. The landlord decides to increase the amount of rent payable. The lessee is not required to pay the increased amount, and rent in relation to the increased amount can not start to accrue, until after the end of the response period. I’m a tenant and have been effected by COVID-19. How do I initiate negotiations? Either party of an affected lease can initiate negotiations. If you are a tenant, you should put a request for a rent reduction to the landlord in writing. The parties must, as soon as practicable, give each other information relating to the request that is: Trust, accurate, correct and not misleading; and Sufficient to enable the parties to negotiate in a fair and transparent way. The Regulation gives the following examples of sufficient information: a clear statement about the terms of the lease the initiator is seeking to negotiate a statement by the lessee that demonstrates why the lease is an affected lease, accompanied by supporting information and evidence, including— accurate financial information or statements about the turnover of the lessee’s business information demonstrating that the lessee is an SME entity under section 5, having regard to any entities that the lessee is connected with, or an affiliate of evidence of the lessee’s eligibility for, or participation in, the jobkeeper scheme information about any steps the lessee has taken to mitigate the effects of the COVID-19 emergency on the lessee’s business, including the details of any assistance being received by the lessee from the Commonwealth, State or a local government in relation to a franchisor—information about any concession or benefit provided to or by the franchisor in relation to rent or outgoings for the premises occupied by the franchisee, and any undertakings to pass those concessions or benefits on to the franchisee Within 30 days after a party receives the sufficient information, the landlord must offer the lessee a reduction in the amount of rent payable under the lease and any proposed changes to other stated conditions. The offer must: relate to any or all of the rent payable under the affected lease to 30 September, 2020; provide for no less than 50% of the rent reduction offered to be in the form of a waiver of rent; have regard to: all the circumstances of the lessee, including the reduction in turnover; the extent to which a failure to reduce the rent would compromise the lessee’s ability to pay rent; the landlord’s financial position, including any financial relief provided to the landlord any reduction in relation to outgoings. Once the parties reach agreement in relation to the rent reduction, the parties should enter into an agreement which varies the lease to record that agreement. What about deferred rent? Rent can be deferred during COVID-19, however: repayment cannot be required until 1 October, 2020; repayment must be over an agreed period of between 2-3 years; no interest, fee or charge can be imposed on the deferred rent (unless the tenant fails to pay the deferred rent when required); To secure payment of the deferred rent, a landlord can continue to hold on to security under the lease until the deferred rent is repaid. What if we can’t reach an agreement? Either party can refer the matter to the Small Business Commissioner to mediate the matter. This is permitted regardless of any dispute resolution process stated in the lease. If the mediation is unsuccessful, then the parties will need to apply to QCAT or a court of competent jurisdiction. How can we help? If you are unsure of how this Regulation affects you or you require assistance documenting an agreement reached with your landlord or tenant during COVID-19, please contact us.
When the hammer goes down at auction
Earlier this year I watched the Australian TV series Five Bedrooms. The show is about five friends (a doctor, a lawyer, a real estate agent, an aged care nurse and a tradie) who purchase a house together at auction. In the first episode, the friends notice many issues with the house, half of the backyard pool has been removed by the previous owner and the upstairs shower almost floods the entire house because of some dodgy plumbing. One of the friends asks ‘didn’t you do the due diligence?’ You would think with a lawyer and a real estate agent purchasing the property things would be hunky dory, however there are many pitfalls to be wary of when purchasing a property at auction. Here, we discuss the things you should consider before buying a property at auction.
Property Notice - Changes to witnessing requirements for Land Title Registry Documents
If you are a registered Justice of the Peace, Commissioner for Declarations or Solicitor working with Title Registry documents, then you should be aware of the changes to the witnessing requirements which come into effect on 30th September 2019. The Department of Natural Recourses, Mines and Energy (Land Title Office) have released important changes to the requirements for witnessing relevant land title documents, such as transfers and mortgages. A guide to the changes to the witnessing requirements can be found in the new Part 61 of the Land Title Practice Manual (LTPM), specifically section 61-2300 which outlines the obligations of witnesses. Whilst, only a draft copy has been released you can find a link to the relevant Part 61 of the LTPM here. It is likely that witnessing officers are already undertaking adequate steps to verify the identity of the individual signing a document before them. However, from 30 September 2019 it is now a legal requirement to undertake a series of steps to confirm the true identity of the individual and keep written records of the steps undertaking and the documents sighted.
Neighbourhood Disputes (Dividing Fences and Trees) Act 2001 - doesn't apply to trees situated on rural land
A recent decision of QCAT confirmed that Neighbourhood Disputes (Dividing Fences and Trees) Act 2001 does not apply to trees situated on rural land. Ms Smith applied to QCAT for an order that Mr Attawar's trees affected her land and that the trees be removed at Mr Attawar's cost. Mr Attawar however sought an order that Ms Smith's application be dismissed because: The trees are located on his land His land is zoned rural land the Neighbourhood Disputes (Dividing Fences and Trees) Act 2001 does not apply to trees situated on rural land. The Neighbourhood Disputes (Dividing Fences and Trees) Act 2001 defines "rural land" to mean land under the Land Valuation Act 2010. Sections 9 and 10 of the Land Valuation Act 2010 state that land is "rural land" if it is zoned rural land and has not ceased to be zoned rural land, more than half of the land is zoned rural land, or the land has been declared to be rural land. Mr Attawar presented correspondence from the Council confirming that the land was zoned as rural land. The court found in favour of Mr Attawar and dismissed Ms Smith's application. A direct link to this case can be found HERE. If you require further advice on this issue or any other rural legal issues please contact our Property Law team on 4771 5664 or leave an enquiry below.
Property Alert - Original Certificate of Title
For those who own your own home you may have stored away in your safekeeping an original certificate of title. The certificate of title is a paper record that shows the current owner of a property and any particulars that may be recorded which effect the land. Since 1994 the Land Titles Registry have transferred the paper system to an electronic system, in which, certificate of titles have not been automatically issued by the Registry unless requested to do so. In instances where a paper certificate of title exists, it must be physically produced to the Registry in order for a property transaction, such as a sale, to proceed. As of the 1st of October 2019, paper certificate of titles will no longer have any legal effect and there will be no requirement for disposing of any existing paper certificate of title, nor will they need to be dispensed with the Registry for a transaction to proceed. The certificate of title will become more of an item of historic or sentimental value. The electronic title held in the Registry will continue to be the point of truth for ownership and other interests in land in Queensland.
Appeals to the Planning and Environment Court
In order to carry out certain types of development an application may need to be made to the Council for a development permit. The application may need to be detailed and will likely require the assistance of an experienced town planner. Where the application is complex or sensitive, specialised consultants will need to be retained to provide reports. The application may take months to be properly assessed and reach the decision stage. Where the application requires impact assessment the application will be advertised to the public to allow members of the community an opportunity to make a submission for or against the application.
Mortgagee in Possession Sales: Bargain or Bust?
Unfortunately, due to an accident, illness or sudden change in life circumstances, a homeowner may be placed in a position where they can longer meet their mortgage repayments. When default occurs, the bank will take possession of and re-sell the property to recover its losses. These types of sales are called mortgagee in possession sales. For purchasers who are in the right market at the right time, a mortgagee in possession sale may present itself as a great opportunity. However, they can also be ‘risky’ purchases. We answer some of the most common questions asked by purchasers when buying from a bank.
NQ firms' agricultural roots run deep
The Australian agricultural sector has witnessed extraordinary change in recent years with a constantly changing regulatory environment, competition law reforms, globalisation of markets and significant developments in technology innovation. Keeping up with these changes and capitalizing on the opportunities they provide can be difficult when you have a business to run and it is important that farming families have trusted advisers with hands on experience and up to date knowledge of the legal issues and opportunities facing the Australian agricultural sector. Connolly Suthers Lawyers has its roots in working with primary industry. The firm has evolved from a traditional North Queensland rural services practice, which, in the past, has comprised branch offices in Tully, Ingham, Hughenden and Airlie Beach. Connolly Suthers now has offices in Townsville and Ayr and offers a 120 year track record and a specialised regional knowledge and presence in North Queensland.
The first home vacant land concession – can you claim it and what happens after you claim it?
You can claim a first home vacant land concession if: You buy vacant land valued less than $400,000 You are at least 18 years of age You have never held an interest in residential land anywhere in the world You will build your first home on the land You will only build 1 home on the land No building, or part of a building is situated on the land when you buy it You haven’t received a first home vacant land concession before
Minimum heights for residential rooms and spaces – What are the rules and when should I be concerned?
Let us set the scene. Mary has decided to buy an investment property. It is a Queenslander that has been raised, it contains 3 bedrooms upstairs, one below as well as a large rumpus area. Mary has done her sums and she can get a nice return on this house if she rents it out. Mary’s building inspector takes a look at the ground level of the property and measures the distance between the floor and the ceiling. Mary wonders why the inspector does this… Why measure A room or space must be of a height that does not unduly interfere with its intended function. The objective is to safeguard the occupants from injury or loss of amenity caused by inadequate height of a room or space.
Incentives and transfer documents – what is recorded in Item 4 and on the Form 24?
A case summary of Sentinel Citilink Pty Ltd v PS Citilink Pty Ltd [2018] QSC 239 Given the Court’s construction of the reference “balance of the Purchase Price” and the magnitude of the purchase price of this transaction, the outcome of this case demands attention. The Contract Sentinel Citilink Pty Ltd as trustee of the Sentinel Citilink Trust (the Seller) and PS Citilink Pty Ltd as trustee of the Citilink Property Trust (the Buyer) entered into a contract dated 20 December, 2017 for the sale and purchase of commercial property located in Bowen Hills, Queensland. The critical details of the Contract were as follows: The purchase price payable was $81,200,000.00 The deposit payable was $4,060,000.00 Settlement was fixed to a date which was 5 business days after notification that a particular certification had been obtained A Special Condition which provided that the balance purchase price payable at settlement on the Contract was to be adjusted by an amount equivalent to the value of any outstanding incentives which the Seller had agreed to provide or perform for tenants for the property.
Is your house covered under the Queensland Home Warranty Scheme?
Your biggest financial investment in life is likely to be your family home. If you are building a new house or renovating your existing house then it is mandatory that your building contractor take out home warranty insurance on your behalf. Home warranty insurance policies last for 6 years and 6 months from the earlier of the date that the premium is paid, the contract is entered into or the date that the work commences. Subsequent owners (i.e. purchasers of new homes or renovated homes) should find out if the home is covered, how long is left on the policy and if any claims have been made. To assist with finding out this information, you can now perform an online search with the Queensland Building and Construction Commission to determine whether your home or the home that you are buying is covered. Register for myqbcc to undertake a search on your home: https://my.qbcc.qld.gov.au/s/
Building and Construction Alert - Combustible Cladding Laws Commence 1 October 2018
The Building Act 1975 will be amended by the Building and Other Legislation (Cladding) Amendment Regulation 2018 in response to fires linked to combustible cladding materials and these amendments will come into effect on 1 October, 2018. The amendments provide that owners of buildings: That are a class 2 – 9 (for those of you who are not familiar, class 1 is a residential dwelling – to see the list of classifications click here) and that are of a type A or B construction; For which a building development approval was given, after 1 January 1994 but before 1 October 2018 for building work to build the building or to alter the cladding on the building must register their buildings and complete the combustible cladding checklist.
The North Queensland Stadium, its planning framework and what's next
The North Queensland Stadium...take a look! The development of the North Queensland Stadium is well under way. It is an epic project, and it is such an exciting time for the region. Take a look at the 360 degree rendered image of the stadium which is now available for public view through this link. Wow! Our new Stadium is located within the Townsville City Waterfront Priority Development Area. The Townsville City Council has published a 3D flythrough to experience the vision of the Waterfront which can be accessed by clicking here. The Waterfront project is one of the biggest urban renewal projects currently underway in Northern Australia encompassing approximately 97.2 hectares of land and will provide Townsville with significant investment opportunities and jobs.
What is land tax and why is it so important to get a land tax search?
Land Tax is a tax payable to the Queensland Government and is calculated on land owned at midnight on the 30th of June each year. Most Queenslanders are not liable for land tax because the value of their land is not high enough. Also, a family home is exempt from land tax. However, should you meet the relevant thresholds as you expand your portfolio, you will be liable to pay land tax. You can find out if a Seller has a land tax liability by performing a “land tax clearance search”. The search will reveal the amount of land tax payable or if there is no land tax payable then the Queensland Government will issue a Clearance Certificate. If you do not do the search and if the seller hasn’t paid their land tax liability on the property you’re buying, their debt may transfer to you. The Queensland Government cannot later recover unpaid land tax from a purchaser who obtains a Clearance Certificate which at the time said that no land tax was payable. If you wish to make an enquiry with our Property Law team you can contact us on (07) 4771 5664 or email law@connollysuthers.com.au
Farm Business Debt Mediation Scheme Queensland
Sugarcane is one of our largest and most vital rural industries. In fact, sugarcane is Queensland’s largest agricultural crop allowing our farmers to produce up to 4.5 million tonnes of raw sugar, 1 million tonnes of molasses and 10 million tonnes of bagasse annually (Australian Sugar Milling Council). Our warm tropical temperatures are ideal for growing and producing sugar. We are proud of our farmers and commend them for their long-standing commitment to our States agricultural industry. Our farmers can encounter financial problems when the industry is impacted by drought, natural disasters, disease, government mandates and regulations – the list goes on. It is important for our farmers to be aware that assistance is available to them under the Farm Debt Mediation Scheme (FDMS) when impacted by these challenges . The FDMS provides farmers have the ability to negotiate with their bank or enter into a heads of agreement with their bankers about the management of the debt before the bank can commence debt recovering proceedings including taking possession of the property .
Developing Land Adjoining Heritage Places
Owners of properties that adjoin heritage places are affected by the new State assessment trigger. This is set out in the Planning Regulation 2017. Presently, development on a Queensland heritage place is assessable development, unless: An exemption certificate has been given under the Heritage Act The development is liturgical development The development is carried out by the State The development is PDA-related development The development is carried out for the cross river rail project. If you make a material change of use application for a premises that shares a common boundary with a lot that is, or contains, a Queensland heritage place, the application will be subject to code assessment and be subject to a referral trigger to the State.
When a Cyclone Strikes, who is at Risk?
Picture this... You have signed a contract to purchase a beautiful house on the beach, your bank has approved your finance application and your Building and Pest reports were glowing. The day before settlement you are watching the news: a category 5 cyclone is making its way towards the coast – right towards the property you intend on purchasing. At best, the house is going to cop some damage; at worst, it will be completely destroyed. Given the recent weather events, Tropical Cyclone Owen in North Queensland, a common enquiry we receive is: who is going to pay for the damage, the Buyer or the Seller? The standard terms of the typical REIQ Contract for Houses and Residential Land provide that the property is at the Buyer’s risk from 5:00pm the day after the Contract Date. If the storm comes, the Buyer is liable for any damage to the property that may occur from the day after the contract is formed. It is for this reason that you should always insure the property that you intend on purchasing as soon as possible after signing the contract. Don’t leave it too late, no insurance company will insure your property once a cyclone or severe storm is forecasted. If you find yourself experiencing the above situation as a Seller, you are not off the hook. Although the Buyer is at risk for the most part, it is extremely important that you maintain insurance over any dwelling on your property until settlement. This is because once a dwelling house is so destroyed or damaged as to be unfit for occupation, the Buyer may rescind (take back) the contract. That leaves you with a destroyed house and no contract. With an adequate insurance policy, you will at least be entitled to the benefits. Whether you are buying or selling, insure your property. You can never be too careful! If you have any questions regarding your property or one that you are looking to purchase, call our property law team on (07) 4771 5664 or email law@connollysuthers.com.au.
Neighbourhood Disputes: How to Deal with a Noisy Neighbour
Noise is one of the most common causes of disputes between neighbours. When it comes to noise, we have different levels of tolerance and can react differently. What is completely bearable to some may be disruptive or disturbing to others. When you are not used to loud noise, you may find it very irritating when your neighbour plays loud music or uses noisy tools early in the morning or late in the evening. How can you deal with that? Should you yell and tell your neighbour to stop what they are doing or will you try to resolve the problem in a peaceful manner? Should you file a complaint? Who should you complain to? Before you lose your temper and do something that may create more trouble, we suggest you take the time to stop and think about the issue and how best to approach it.
Gotta Catch 'Em All
The Federal Government introduced new rules that aim to catch foreign residents that dispose (i.e. sell or transfer) certain taxable Australian property. These new rules started on 1 July 2016 and apply to contracts (and various other transactions) signed after this date. The withholding rules started with a bunch of important people sitting around a table (probably with very decent coffee and a reasonable selection sandwiches) discussing what they needed to do to ensure that when a foreign resident sells an asset the tax gets paid. Similarly, about 5 years ago, members from Niantic Labs plotted an evolutionary idea…(I would suspect that they were surrounded by very good coffee accompanied by some serious sugary stimulants) a concept to ensure that every person with a smartphone has the ability to catch Pokémon. True Pokémon enthusiasts must be feeling pretty nostalgic right now.
Misleading and Deceptive Conduct
"I'm telling you, the fish was THIS big!" There are serious consequences for making incorrect or misleading representations. A case about a $16.85M apartment on the Gold Coast which was decided in January, 2016 dealing directly on this subject is the perfect example to use: http://archive.sclqld.org.au/qjudgment/2016/QSC16-005.pdf The developer commenced marketing units in the “Soul” Development at Surfers Paradise in 2006. In April, 2006 the developer entered into an “off the plan” contract to sell the penthouse apartment for a price of $16.85 Million. In July, 2012 the developer finished the development and called on the buyer to settle. The Buyer sought an extension of settlement for nearly 2 years to which the developer agreed and applied penalty interest. In October, 2012 receivers and managers were appointed to the rights, property and undertaking of the developer. The reference to developer in this article includes the receivers and managers. The buyer failed to attend settlement and the developer terminated the contract for the buyer’s breach. The developer forfeited the deposit, reserved their rights under the contract and commenced proceedings in the Supreme Court of Queensland. The buyer counterclaimed the proceedings on the ground of misleading and deceptive conduct.
Conveyancer or Conveyancing Lawyer?
So you're interested in buying property? That's great, but now who do you turn to in making sure those dreaded ‘I s’ are dotted and ‘T s’ are crossed? You have two options: A Conveyancer or a Property Lawyer. You might be thinking “what's the difference between them and what will each of them cost me?” But are you really comparing apples with apples? First of all, there are quite a number of differences between the two. Firstly, a Property Lawyer will perform all of the functions of a Conveyancer that are involved in a property transfer, no matter which part of the transaction you’re completing.
Building & renovating your existing home
Feeling sick of watching those renovation shows? Perhaps you can’t get enough. For us though, building and renovating raises an important legal question – is the structure approved? If you are looking at building a new home or renovating your existing home you should contact the Local Authority to see what requirements they have prior to starting construction. If you are purchasing a home, you should be mindful of the standard Real Estate Institute of Queensland (REIQ) Terms of Contract. In particular, clause 7.4(5) which provides a warranty given by the seller which states that the seller does not warrant that the present use of the property is lawful. This means that if the shed, the 3rd bedroom, the ‘carport turned media room’ or the swimming pool is not approved by the Council then you will have no express right to terminate the Contract. The issue further extends to a circumstance where a structure is not approved, is not capable of being approved or requires extensive and expensive works to comply with Local Authority requirements. It is important to be informed of these matters before you settle. To get around this issue and be fully informed of what improvements are approved (or not) you should include a special condition in your contract which allows you to make enquiries with the Local Authority and gives you the right to terminate the Contract if the enquiries reveal any adverse results. Prior to signing any contract for the purchase of a property, you should always consult a Solicitor skilled in this area to review the proposed contract to determine whether your particular circumstances call for a special condition to be included in your contract. Our team at Connolly Suthers Lawyers are skilled in this area and are only a phone call away (07) 4771 5664.