Law To Your Door, Author at Law To Your Door

Law To Your Door Incorporates Maitland Practice

Singleton law firm Law To Your Door has announced the incorporation of LJC Conveyancing.

The Firm now offers two convenient locations at 4/88 John Street, Singleton and 2/500 High Street, Maitland.

The Singleton office is overseen by Stacy Munzenberger together with the assistance of Christine and Katrina and the Maitland office by Lyn Johnston together with Yuliya and Andrea. Both offices work extremely closely with one another.

“Law To Your Door has gone from strength to strength since we opened our doors 2 years ago,” said Firm Director Stacy Munzenberger. “When the opportunity arose to incorporate LJC Conveyancing it made perfect sense given the synergies between the two practices and the enhanced benefits the 2 offices would provide for our clients.”

Law To Your Door offers real estate, commercial and estate law services and, together with LJC, has added considerable depth to its existing property law practice.

“Between Lyn and I we offer more than 45 years of experience,” says Stacy. “Clients can feel confident that we have an established team in place across multiple offices to handle their legal requirements.”

We thank our clients for their continued support and look forward to the future.

Pictured: Stacy Munzenberger [Left] and Lyn Johnston [right].

Property Settlements Face New GST Rules from 1 July

From 1 July 2018, purchasers of new residential premises or potential residential land (eg. new lots in new residential subdivisions) are required to withhold an amount of the contract price and pay this directly to the Australian Taxation Office as part of the settlement process. The amount of GST will not change. The new laws came into effect in order to stop the practice known as ‘phoenixing’ where certain property developers would make a taxable sale on these types of properties and fail to remit the GST collected from purchasers to the ATO.

Essentially, the new obligations require:
1. the Sellers of all residential premises or potential residential land to give written notification to the Buyer whether the Buyer will be required to withhold the required GST amount from the settlement proceeds and to pay this amount to the Australian Taxation Office (“ATO”). The liability for the GST remains with the property developer, and there are no changes to how property developers lodge their business activity statements.
2. the Seller to split the amount of GST from the total purchase price,
3. the Buyers of new residential premises or potential residential land to lodge two separate online forms (the GST Withholding Notification form and the Settlement Advice Notification Form) with the ATO and to ensure that the required GST amount is withheld from the settlement proceeds and paid directly to the ATO by a disbursement at settlement; and
4. the Buyer to pay the GST exclusive price to the property developer (Seller).
Purchasers do not need to register for GST to pay the GST direct to the ATO.

Contracts for the sale of residential premises or potential residential land entered into after 1 July 2018 should include appropriate provisions dealing with these obligations. Specially drafted non-standard contracts (such as “off the plan” contracts for particular development projects) must ensure that they include adequate treatment of the GST withholding obligations of both parties.

There is no requirement for a vendor to provide a GST withholding notice for contracts entered into before 1 July 2018 and the new requirements do not affect the sales of existing residential properties or the sales of new or existing commercial properties.

The amended legislation includes a transitional arrangement that excludes contracts entered into before 1 July 2018 where any consideration for the supply (other than a deposit) is provided before 1 July 2020. This will provide certainty for contracts that have already been signed.

For a Plain English overview of the new provisions you might wish to watch the following short animated video prepared by the ATO.

The contents of this blog, current at the date of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.

Queensland Legal Update: Water Licenses

With so much focus on the drought it is timely to consider land dealings that involve a water license.

Water licenses are granted under The Water Act 2000 (Qld). The Act permits a land owner to take and use water on their land or to interfere with the flow of water on, under or adjoining their land.

The Water Regulation 2016 prescribes how certain land dealings such as a sale, subdivision or boundary realignment will affect a water license.

When a parcel of land to which a water license is attached is sold the water license transfers to the new land owner. When there is a part disposal of the land the water license is said to be held jointly by all owners of the land to which the license is attached. When a license is held jointly, all owners assume shared responsibilities for payment of annual fees and meter readings.

More information on water licenses can be found at the following link.

Plan not to fail

Estimates are that one in three new small businesses in Australia fail in their first year of operation, two out of four by the end of the second year, and three out of four by the fifth year. It is perhaps of no surprise when you consider that only a small number of businesses conduct a formal feasibility study and prepare a business plan before they commence the business.

According to a recent report prepared by HB Mann Judd – SME Research Report 2017/18 – four in five businesses do not have a working business plan in place undermining their ability to resolve problems and maintain a steady growth trajectory.

If you wish benchmark your business against others within the industry, and identify areas for improvement you need to have a plan in place. A business plan includes financial, marketing, distribution, operational and administrative issues that will make the business work. A key feature of your business plan is to show how you will take advantage of opportunities and strengths, overcome weaknesses and head off threats (SWOT analysis).

Your plan is a working document and should be reviewed annually to take into account the changes in the business.

Not sure where to start? The Australian Government provides free business plan templates.

You also need to be aware of what laws apply to your new business. Are you familiar with the laws relating to hiring staff, marketing, your intellectual property, licenses, contracts, registrations and leases? It is money well spent to schedule an appointment with your lawyer to discuss your business and its legal requirements to ensure you are compliant. Make an appointment with us today.

Privacy meets benefits of driverless cars head-on

Love to drive? Did you know that the driverless car industry is estimated to be worth $90 billion within the next 15 years. As you get excited about the potential to watch Netflix (or sleep) during peak hour you might want to pause for a moment to consider that, alongside the benefits, each car will collect – daily – up to 12,000 GB of data about you; data that is not only of great commercial value but is vulnerable to potential cybersecurity threats.

There is often a gap between what people know about information collected about themselves and how it will be used. Understandably, with your movements set to be tracked across all elements of the day – from where you go to where you shop, what you buy and who you interact with it becomes increasingly imperative that the companies collecting the data have a greater onus to protect your privacy from the beginning of the information cycle by being more transparent about how the data will be collected and used.

Privacy laws in Australia apply to companies making more than $3 million. Essentially the laws require them to:
• only collect personal information relevant to their functions and activities;
• make people aware of personal information collection and how that information is used through an up-to-date privacy policy and collection notices provided at the time information is collected;
• only use and disclose personal information for the purpose for which it is collected, with the individual’s consent, and for limited other purposes; and
• keep personal information secure.

In terms of international precedent 20 US States have enacted laws pertaining to self-driving cars. There is also the AV Start Act currently before the US Senate which touches on a number of cybersecurity, data access and privacy concerns. Australia’s privacy principles reflect the guidance coming out in jurisdictions around the world for privacy in the context of autonomous vehicle technology.

One driverless car manufacturer Tesla says it’s possible to opt out of data sharing, but the company warns that this may cause “reduced functionality, serious damage, or inoperability”, including the disabling of software and firmware updates.

As a desire for improved road safety drives (no pun intended!) the introduction of self-driving cars across the globe it will be interesting to see how Australian law responds to an important need for the responsible and transparent use of personal information in an age of increasing data production.

Conveyancing emerges into digital era

The NSW Government is currently mandating the transition to eConveyancing of all core conveyancing transactions.

eConveyancing will replace many of the paper and manual processes traditionally involved in property transactions with secure online processes. It is said to be the most significant change the property industry has undergone since the introduction of the Torrens system in 1863.

Benefits of eConveyancing:

• Home buyers will be able to lodge documents online 24/7, creating flexibility with time critical transactions.
• In most cases, settlement and lodgement will occur simultaneously instead of at the convenience of the bank, which can take days, weeks or months.
• Electronic funds transfers remove the cost of cheques and are more secure, removing the traditional three-day wait for funds to clear.
• Electronic conveyancing eliminates settlement fees and reduces the potential for fraud and other issues that arise around paper-based transaction.
• There will be reduced labour and preparation costs.

Property Exchange Australia (PEXA) was formed to deliver a national eConveyancing solution to the Australian property industry. PEXA is currently the only Australian Electronic Lodgement Network Operator (ELNO) and eConveyancing platform.

July 1 2018 was a significant date for property lawyers In NSW. Stand-alone transfers and caveats must now be transferred electronically and the current requirement for electronic lodgement of discharge of mortgage, mortgages and refinance transactions by Authorised Deposit Taking Institution’s is extended to all mortgagees.

Around October of this year all Certificates of Title held by banks will be cancelled greatly increasing the number of eCertificates of Title. By July 2019 all paper Certificates of Titles are to be cancelled, all mainstream property transactions are to be transacted electronically, and the entire system will be digital.

Law To Your Door is a Member of PEXA and can assist you with all your eConveyancing needs. Speak to us today.

Digital Assets Go Beyond The Grave

If you keep photos on your hard drive, money in a PayPal account, use cryptocurrency, send emails, store contacts on your mobile phone, videos on your iPad or have one (or multiple) social media account/s then you – like the majority of your fellow Australians – have digital assets.

I’m guessing that the majority of you haven’t given much thought as to the legacy of those assets in the untimely event of your incapacity or death.

There have been a number of cases overseas where family members have pursued litigation for access to a deceased person’s online accounts. No such issues have yet come before Australian courts that we are aware of. Whilst a number of US States and Canada now have legislation in place to deal with the distribution of digital assets, Australian law has almost nothing to say on the topic. The NSW Law Reform Commission is currently examining the matter and will, during the next 12 to 18 months, decide whether NSW should enact legislation about who may access a person’s digital assets after they die or become incapacitated and in what circumstances. A number of laws are relevant in this context. They include contract law, private international law, criminal law, privacy law, property law, copyright law, succession law and estate administration law.

The ownership of your digital data is spelled out in the hundreds of pages of user agreements that you (often inadvertently) sign when setting up a user account.

One US study suggested that it would take an average internet user 76 days just to read all the terms and conditions they agree to each year.

Most people have no idea what would happen to their online data in the event of their death.

Consider Facebook as one example. There are 2.2 active billion Facebook users [March 2018] – of whom 30 million died in the first 8 years of the company’s existence. 10,273 users of the popular Platform die each day. What happens to all that data? Who owns it? You might be surprised to learn that Facebook owns the data UNLESS prior consent to access it is obtained from or decreed by the deceased or mandated by law (a mandate which doesn’t currently exist in Australia). Without that mandate Facebook has the right to memorialise a page which basically freezes it with the same permissions as it had when the deceased user last accessed it; or the account can be set up to be deleted once Facebook is advised of your death or a legacy contact can post on your behalf (but can’t change any historical posts).

Instagram, Twitter, Snapchat, Tumblr, Yahoo and Linked In allow immediate family members to request the deactivation of a deceased person’s account (death certificate and other ID required) but the account cannot be accessed.

iTunes and Amazon do not allow your music/Kindle library to be bequeathed to family members. You paid money for the music/books but under the terms of the agreement you only rented the items not purchased them so cannot pass them on.

The collision of technology with the way we use personal information in the 21st Century makes it imperative that the law keeps pace. Equally it is vital that you have a frank discussion with your legal practitioner about your digital estate and how you wish to plan for it be managed should you become incapacitated or pass away.

Cybercrime shines brightly on National conveyancing platform

Two recent cases of email impersonation fraud have shone the light on the potential security of data managed by PEXA (‘Property Exchange Australia’), Australia’s national electronic land conveyancing platform.

Why is this relevant to you?
Conveyancing is the process of transferring ownership of a property from one person to another. It is a critical step in the buying or selling of a property.

If you are in the process of buying or selling a house in New South Wales, Victoria, Queensland, South Australia and Western Australia it is more than likely that your conveyance will be conducted via PEXA.

Benefits of PEXA
PEXA has proven a valuable tool for home buyers and solicitors/conveyancers alike.

PEXA evolved from the Council of Australian Governments (COAG) meeting in 2008, which agreed to modernise the traditional paper-based property settlement process.

PEXA’s network of conveyancers and lawyers allow home buyers the ability to select the right conveyancing professional to help them through to settlement. PEXA allows the solicitor/conveyancer to:

- liaise with the home buyer or seller’s bank,
- conduct title searches,
- lodge transfer documents with Land Registries,
- transfer funds digitally to ensure a seamless settlement; and
- reduce the number of manual processes and the paperwork required with traditional conveyancing transactions.
- Payments are made digitally rather than via bank cheque. Automatic online document checks reduce errors, and documents are lodged instantly to make the process as quick and easy as possible.

Overall, using an electronic platform and solicitors have shown a strong willingness to work with PEXA because the system removes uncertainty and avoids errors. There are currently more than 3,500 members on the PEXA network, including Law To Your Door. More than $33 billion worth of property has been successfully transacted online via the platform to date. This will only increase as the property industry works towards a 100% online system of property exchange. The e-transfer system is set to become mandatory in Victoria in October this year, with NSW to follow suit next July.

How safe is PEXA?
2 instances of email fraud– the most recent on 31 May this year – raise questions about the resilience of the PEXA platform and the security of its data. Hackers broke into 2 conveyancing firms’ email accounts, accessed their mail from PEXA and set up new user accounts from which they were able to intercept the proceeds of sale, misdirect funds and leave one family homeless.

In response PEXA has introduced a range of cybersecurity measures and processes to counteract future fraud as well, on 27 June 2018, as announcing a new consumer guarantee for e-transactions. PEXA anticipates this guarantee will go above and beyond any guarantee available in the paper-based settlement process and will provide greater safeguards to consumers whose conveyancer or lawyer uses PEXA.

The Law Society has also written to the Minister for Finance, Services and Property, The Honourable Victor Dominello MP, to express the profession’s concerns, and will be meeting with him and other key stakeholders to consider any required action, including legislative protections, to ensure any outstanding concerns are addressed.

Updates

Given the mandatory adoption of PEXA in NSW in July 2019 and the relevance of this issue to a great many of our clients we will continue to update you on relevant developments.

Please be reassured that Law To Your Door is committed to maintaining the highest levels of cybersecurity on all IT systems used within the Firm.

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Property Law

property-law Buying or selling a residential or commercial property is a big decision and a significant matter for most people. law to your door offer over many years of experience with property law in various and have represented both buyers and sellers of property for all legal matters. This brings peace of mind to our clients.

Our solicitors can offer assistance with property law in the following ways:

Help you fully understand the issues involved in purchasing or selling property in Australia
Assistance with buying or selling at public auction/private treaty
Information about the costs involved (including stamp duty)
Advice for your Contract for Sale
Advice in regard to the ‘cooling off period’
Negotiating terms and conditions for the sale or purchase of property
Advice in regard to sale or purchase of vacant land, units, strata and community title, rural land and purchases ‘off the plan’
Advice for meeting lender requirements
Arrange title searches and land enquiries
Help you with settlement and exchange
Help with the legal requirements for subdivisions and property developments
Advice in regard to building contracts
Advice and negotiation in regard to neighbourhood disputes including dividing fence disputes
Representation in dispute resolution and at Court

Trust Law

law to your door can assist you with structuring your business or investments through discretionary and family trusts.

Trusts can be used as a tax minimisation strategy; as a means of providing shared income for family members; to minimise the risk of creditors making a claim against your assets; and to place valuable assets out of the direct control of individuals at risk of making poor decisions that may affect a number of stakeholders involved.

One type of discretionary trust is a family trust. A trustee (frequently one of the family members) is elected to hold assets in their name for the benefit of a group of beneficiaries. Although one or more person can be elected as trustee, so to can a company. This is beneficial in terms of avoiding difficulty experienced in situations such as the death of a trustee, or in circumstances where a trustee is declared bankrupt.

law to your door can assist you with:

Drafting trusts
Reviewing trusts to ensure they comply with financial and trust-related legal requirements
Advice for your accountant to make suitable arrangements
Advice for structuring your trust in ways to minimise the chance of claims being made under family law or debt recovery proceedings.