FAQ's

What are disbursements?

Disbursements are monies paid out by DLC for information, Title Search, and Property Enquiry Certificates prior to settlement. The amount of Disbursements will vary depending on whether or not you are purchasing or selling a property. For example, a certificate obtained from the local municipal council (Land Information Certificate) incurs a fee.

DLC will advise you immediately upon receipt of instructions from you, of approximately how much you will incur by way of Disbursements.

What are adjustments?

Adjustments are the final financial statement of the property transaction. This will show the purchase price, deposit paid, pro-rata adjustment of rates such as council, water, body corporate charges and if applicable rent. The purchaser's conveyancer or solicitor will serve these on DLC prior to settlement and we will confirm all these details with you. Once we confirm all is correct we will liaise with your lender (if applicable) and get a final loan payout amount and request cheques on your behalf.

The adjustments will also allow the vendor to pay any arrears and/or outstanding interest on the rates and charges together with fees pertaining to the discharge of any mortgage or caveat.

When do I receive the deposit?

Once you have a contract DLC can serve on your behalf a Section 27 on the purchaser. This is the request for the early release of the deposit money before settlement. Depending on your financial situation your deposit may or may not get released before settlement.

What if there is a Body Corporate?

For properties on Group Titles, the Body Corporate is the legal entity which manages the complex, holds meetings and takes care of the legal responsibilities of the complex.

Each owner of a lot with the Group Title are members of the Body Corporate.

Before signing a contract, have the following checked carefully:

Vendors Statement
The Body Corporate Certificate (Form 3)

What if I am buying off the Plan?

This is the term used to describe the purchase of land that does not yet exist as separate parcels. Imagine a large paddock, criss-crossed with lines indicating separate blocks to be divided and given individual titles. It is possible for the owner of the paddock to start selling the individual lots before they have been legally separated.

Because the purchaser is simply buying a block "off the plan", rather than waiting until the block has been separated, fenced off and issued with a title, the transaction is known as an "off-the-plan" purchase.

Contracts and Section 32 Vendor's Statements for off-the-plan matters are usually lengthy, and can be extremely complicated. The settlement date can be a problem, because it remains unknown until such time as the plan of subdivision has been registered. Generally, unless the contract provides otherwise, a purchaser may end a contract if the plan of subdivision has not been registered eighteen months from the date of the contract of sale.

Stamp duty is payable on the value of the land and building as at the date of the contract of sale. Therefore, if construction or refurbishment is yet to be commenced, a reduced amount of stamp duty is payable as compared with buying an existing or refurbished building.

Before committing to an off-the-plan purchase you should seek legal advice. This is particularly so if the purchase involves an apartment building, as these have attracted a great deal of critical interest in recent times.

Links

Here are some links to some related sites:

Australian Institute of Conveyancers
Search for a Land Title
State Revenue Office