Property law

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Rosendorff’s property Lawyers have many years of experience in assisting clients buy and sell their commercial or residential properties. Below are some basic tips to assist you when approaching a property transaction.

1) Check the contract…..

Unfortunately the most basic issue is the one most often overlooked. Most issues can be readily identified by simply reading the contract and section 32 before you purchase a property.

2) Is the property subject to a restrictive covenant?

Many properties in Melbourne are burdened by a restrictive covenant that runs with the land. This means that the covenant (like a contract) applies to subsequent owners, irrespective of how far removed they are from the person who originally created the restrictive covenant. Restrictive covenants can restrict the owner from subdividing the property, building a double storey house or requiring that the building be set back from the street frontage a certain distance. It can become a very expensive and time consuming exercise to have a covenant varied or modified. Please seek professional advice if the property you propose to purchase is subject to a restrictive covenant.

3) Have you had the property checked for defects?

Buyers beware! The amount of defective building litigation is a steady constant in Victoria. It is advisable to have any property you intend on purchasing

inspected for potential issues before you commit to signing the contract of sale.

The cost of an Archicentre report is minimal compared to the cost of repairing the defective items once you have signed the contract.

4) Have you checked that you can use the property for its intended purpose?

This is another area of major aggravation for clients. Often a person/business will purchase or lease a property only to find out that the property cannot be used for its intended purpose. Make enquiries with the relevant local council and contact your solicitor to have them check the local planning overlays to ensure you can use the property for its intended purpose.

5) Have you thought about the most tax effective way of purchasing the property?

Often people purchase a property without giving consideration to how the purchase can be made tax effective. If structured properly, this can potentially save you significant amounts both at the time of purchase and into the future.

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