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Important information for Landlords & Tenants regarding make-good

Make-good obligations are a very important aspect of commercial leasing for both landlords and tenants. Landlords are often entitled to enforce their rights by requiring tenants to comply with the make-good provisions when the lease is about to end. These provisions, when drafted carefully in the lease, should clearly define the conditions in which the premises must be returned. The provisions should ensure the protection of the landlords’ investments and set out the extent of the tenant’s obligations in that regard noting that these works can be very costly for either (or both) parties. [...]  READ MORE →

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Reverse Mortgages – An Alternative to Downsizing?

A reverse mortgage involves a secured loan which gives the lender an interest in the unencumbered value of your home (being the market value of your property, less any debt secured against that property), commonly known as the “equity” in your home. Accessing funds through this type of loan is used by some retirees as an alternative to downsizing.

How it works

Put simply, under a reverse mortgage loan a lender agrees to advance money to you in consideration for an interest in the equity of your property, proportionate to the loan amount. [...]  READ MORE →

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Unjust strata by-laws and unreasonable strata levies

There is a recent Supreme Court decision concerning unjust clauses in a strata exclusive use rights by-law and also concerning unreasonable strata levies.

In case of Perpetual Corporate Trust Ltd v Owners Corporation SP6534; El Khouri v Owners Corporation SP6534 [2024] NSWSC 173, the Court deals with a matter involving a penthouse apartment (Lot 11) in Point Piper Sydney situated on the fifth and sixth floors of the strata building. The building comprises of 11 lots in total. The penthouse has extensive ocean views of the Sydney harbour particularly observed from the balconies on the two floors and the rooftop area. The balconies and the rooftop have been accepted to be common property. There were also various valuation evidence that the exclusive use rights alone amounted to $2,250,000 in value. [...]  READ MORE →

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Reforms to the Retirement Villages Act

Retirement villages and “Over 55 Lifestyle Estates” are becoming popular post-retirement living arrangements among the Australian ageing population. While these communities offer unique lifestyles, it is crucial to consider the potential complexities and issues which may arise in respect of post-retirement living arrangements.

The establishment, operation and management of Retirement villages and retirement village contracts are subject to the Retirement Villages Act (NSW) 1999 (the ‘Act’).In 2021, significant changes were introduced to the Act to safeguard certain rights of residents. [...]  READ MORE →

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Significant Changes to NSW Duty and Land Tax in 2024

Key changes to NSW Duty and Land Tax take effect as of 1 February 2024, from the Treasury and Revenue Legislation Amendment Bill which assented on 27 September 2023.The reform introduces substantial amendments aligned with the NSW Government’s 2023-24 Budget. Key changes are set to impact land tax, corporate reconstruction, consolidation transactions and landholder duty, demanding attention and strategic planning from affected individuals, businesses and investors.

Summary of some of the key reforms include: [...]  READ MORE →

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Strata – Electric Vehicle Ready Buildings Grant

The NSW Office of Energy and Climate Change (as part of the Net Zero Plan Stage 1) has introduced a grant with a quota to assist over 125 residential strata apartment buildings in NSW to install electric vehicle (EV) charging infrastructure within their carparks. Applications are now opened.

What this means is that owners corporation apartment residents may be able to charge their electric vehicles at home (within their building) without seeking electric ports elsewhere!

Eligibility Criteria (briefly) [...]  READ MORE →

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Recent developments in the appointment of strata managers and their validity

There are recent judicial developments concerning the validity in the appointment of strata managers arising from the case of Walker Corporation Pty Ltd v The Owners – Strata Plan No 61618 [2023] NSWCA 125.

In the Walker case, the NSW Court of Appeal clearly establishes the Court’s preference to uphold the lot owners’ rights to choose their own strata managers for their own strata scheme.

Case Background

In the Finger Wharf Development at Woolloomooloo, the Wharf was subdivided into 8 stratum lots. Seven of these were subsequently subdivided by way of a strata plan thereby forming the seven respective independent strata schemes. [...]  READ MORE →

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Tax refunds available! Surcharge purchaser duty and surcharge land tax in breach of international tax treaties

Certain foreign persons are no longer required to pay surcharge purchaser duty and surcharge land tax (“the Surcharges”) when purchasing residential land in NSW. Those who paid are now eligible to receive refunds on any Surcharges paid on or after 21 July 2021.

The NSW Government determined that the State’s Surcharges were infringing upon international tax treaties, which Australia is a party of and are in force under federal law. As a result, Citizens of New Zealand, Finland, Germany, and South Africa can make a claim for a refund of the Surcharges they had paid. Otherwise, NSW Revenue is proactively searching for and contacting those who may be eligible. [...]  READ MORE →

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Historic Property Tax Legislation in NSW Passes in Parliament

Thousands of first home buyers in New South Wales will now be able to unlock the dream of home ownership sooner after the Property Tax (First Home Buyer Choice) Act 2022 (“the Act”) received assent from the Governor on 11 November 2022.

The Act allows an eligible person to opt to pay an annual property tax rather than stamp duty when buying their first home.

The concept of the property tax was first raised by NSW Premier Dominic Perrottet in July 2020 as a mechanism to abolish stamp duty and land tax and replace it with a single annual property tax. The concept relies on a long transitional period initially  beginning with first home buyers who can choose to place the property being purchased into the property tax system. [...]  READ MORE →

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New laws in NSW significantly expands the types of transactions subject to duty

New legislation has been enacted in NSW which makes some important changes to the NSW duties and land tax provisions. The State Revenue and Fines Legislation Amendment (Miscellaneous) Act 2022 (the Act), which received Royal Assent on 19 May 2022, has seen a number of taxpayer-unfriendly changes made to the Duties Act 1997 (Duties Act) and Land Tax Management Act 1956, which include but are not limited to:

changes in beneficial ownership (beyond those transactions already listed under current rules) will become subject to duty; [...]  READ MORE →

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New Health Orders and police powers for Apartment Buildings

COVID-19 Laws – New Health Orders and police powers for Apartment Buildings

On 6 September 2021, the Minister for Health and Medical Research introduced a new COVID-19 Health Order. The revised Order includes additional provisions to facilitate government lockdowns of specific apartments.
In short, the Order offers the Minister the power to declare a building as a “high COVID-19 risk premises”. This declaration can be made if at least one dwelling in the building is considered a COVID-19 risk premises and there is a risk of transmission of COVID-19 between the residents. The declarations will be made on the NSW Health website.
Unless the Minister revokes the declaration, a building will remain a high COVID-19 risk premises for 14 days. During this time residents must not leave their residence unless they are instructed to do so by an authorised medical practitioner or the police, or in the case of an emergency. [...]  READ MORE →

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Short-term letting restrictions and how they impact you

Short-term letting restrictions – PART 2

Short-term letting restrictions and how they impact you

We have previously written an article about the short term letting issues affecting property and strata participants back on 6 March 2021 (You can read it here). In short, it dealt with Part 1 of the legislative framework to regulate the short term letting situation. It involves the NSW Fair Trading’s mandatory code of conduct (which regulates the conduct of short term letting, presuming it is permissible) and the Strata Legislation (which allows the strata schemes to ban short term letting in lots that are not a principal place of residence of the owner or occupier). [...]  READ MORE →