Q. Why do I need a Land Information Memorandum (LIM)?
A. It's a very good idea to obtain a LIM whether or not your agreement provides for it. Doing this may avoid costly problems later on.

A LIM will give you relevant information on the zoning of the property. It will enable you to be confident that all alterations/additions and special features on the property you're considering that have been permitted have received the necessary "sign off" from the local authority. This is particularly important if you are considering carrying out any alterations or additions, or developing the property.

Q. What should I look for on a Certificate of Title?
A. The Title is important. A search obtained on a title by your legal advisor will show you the tenure of the property, and it will also show any registrations which may affect the value of your property.

Q . How do I check that the land I am looking at is as shown on the title?
A. The survey plan which is associated with the Title shows the land area. You should check carefully that the land shown in the Title is the land you are viewing, and that which you intend to buy. This is particularly important if you are buying land that is not already built on. Locating boundaries may require confirmation by a Registered Surveyor.

Difficulties can arise, particularly in older subdivisions when buildings are not erected entirely within the property boundaries and may therefore encroach into adjoining property. If existing buildings appear close to any boundaries or if you have any doubts at all, you should check the position with your legal advisor as soon as possible.

Q. Should I get a builder's report and make this a condition of my sale and purchase agreement?
A. Before you sign any agreement, you should inspect the condition of the home carefully. If you are not confident that you can detect any faults the building may have yourself, it's a good idea to get a qualified Building Inspector to inspect the property thoroughly and give you a written report on the condition and costs associated with fixing any problems.

Obtaining a satisfactory Building Inspector's report is a common condition of a sale and purchase agreement. Depending on the report, you may require the vendor to complete certain repairs before the sale is completed.

You have a right of final inspection prior to settlement - the real estate agent can arrange this. All problems need to be notified to your legal advisor before settlement proceeds.

Q. What particular legal issues are there to do with buying or selling at auction?
A. This option is becoming increasingly popular. Auctions are different from other styles of sales. A sale resulting from an auction is generally unconditional. This means that you need to complete all due diligence (LIM, finance, title, agreement, builder's reports, etc) before you bid at the auction. Features of an auction are that that the vendor (or their Agent) can normally bid at their own auction, that a property can be withdrawn before the auction and that the usual terms of sale are a 10% deposit (this is non-refundable) with settlement 30-90 days from the auction night. In an auction situation, be aware that a vendor does not give the usual package of undertakings that you obtain through a listing. Generally, what you see is what you get, so make your investigations carefully.

Q. Are there legal issues if I am buying a property with my de facto?
A. As a result of the introduction of the Property Relationships Amendment Act 2001, if you are buying a property with your de facto partner it is important that you consider how you will own the property.

Under the new Act there is just one rule for all relationship property - if you have been in a defacto relationship for 3 years or more, then all of your relationship property will be divided equally should you separate.

As you will be buying this property either jointly or in specific shares with your de facto partner, you should consider the legal implications of the proposed purchase. From the beginning it is best that you set out clearly, in the form of a written agreement, how you intend the property to be owned and your respective shares in the event that you decide to separate or sell the property. The agreement should also cover matters such as how you will fund the purchase, ongoing costs, and any improvements made while you own the property. A legal advisor can prepare such an agreement for you. We strongly advise you to seek legal opinion on this.

Q. What is a Joint Family Home and what are the benefits of registering my new home as one?
A. If your property is registered as a Joint Family Home, you may gain protection against the claims of certain creditors.

Q. What happens with regards to Council rates on a property when I am buying or selling it?
A. Arrangements will be made by the Vendor's solicitor to ensure that all general and water rates on the property are paid in full up to the date of settlement.

Q. What is a rating valuation?
A. Council is required to have all properties in the district valued at least every 3 years, and this is termed a Rating Valuation. These "Rating Values" are not changed until the next general revaluation unless improvements have been added, subdivision has occurred, or errors or omissions have been discovered.

Q. How does a rating valuation differ from a market valuation?
A. The basic difference between a market valuation and a Rating Valuation is that a market valuation will usually be as a result of a comprehensive inspection of the property, and it will contain a lot more information than a Rating Valuation.

Q. Does council set rating valuations?
A. Not directly. Council contracts valuation services to a valuation organisations skilled in rating valuations. These organisations must comply with the Rating Valuations Act 1998, Rating Valuation Regulations and Rating Valuation Rules, and the Local Government Rating Act. To ensure compliance, Council and the Organisation are audited by the Office of the Valuer General.

Q. What is rating "capital value"? (not registered valuation)
A. This is an assessment of the probable price that would have been paid for the property if it had been for sale at the date of the latest general revaluation. This value does not include chattels, stock, crops, machinery or trees.

Q. What is rating "land value"? (not registered valuation)
A. Land Value is the probable prices that would be paid for bare land at the date of valuation. It includes any development work which may have been carried out, such as drainage, excavation, filling, retaining walls, reclamation, grading, leveling, clearing of vegetation, fertility buildup, or protection from erosion or flooding.

Q. What is rating "improvement value" (not registered valuation)
A. This is the difference between the Capital Value and Land Value. It generally reflects the added value given to the land by any buildings or other structures present on the property and any landscaping.