Template - Buyer First Letter

BUYER FIRST LETTER This letter is only for use: (a) with the REIQ House and Land Contract 9th Edition or with the REIQ Contract for Residential Lots in a Community Title Scheme 5 th Edition; and (b) for contracts formed from 5 December 2011; and (c) by law firms insured by Lexon Insurance Pte Ltd (‘Lexon’) and not for public circulation or for use by any other third party or firm without Lexon’s prior written approval.

INSTRUCTIONS TO USER This is an interactive letter. It contains: prompts to complete # - what needs to be completed.  alternate options # - delete those which do not apply. #

#Name # #

Dear #, MATTER - # PROPERTY: # You have engaged us to act on your behalf in the purchase of the above property. #[contact], under the supervision of #[solicitor, will have the day to day conduct of the legal matters relating to your purchase. 1.

DOCUMENTS ATTACHED TO THIS LETTER We enclose the following:        

Contract (with PAMD Form 30c #[IF); Lawyer’s Certificate PAMD Form 32a; Questionnaire; Checklist; Residential Conveyancing Booklet (for Buyers) (“the Booklet”); #[OPTIONAL]Declaration to obtain first home/first home vacant land transfer concession; Title search (Lot); Copy of registered plan; #[any.

#[OPTION   

Disclosure Statement accompanied with a copy of the Community Management Statement; Title search (Common Property); Copy of the registered Community Management Statement CTS No. ……….. (“CMS”).

-22.

CONTRACT INFORMATION We confirm the details of your purchase are as follows:-

3.

Real Property Description:

Lot # on RP/SP #County # Parish # Local Government # Title Reference #

Street address

#

Seller:

#

Buyer:

#

Buyer’s address:

#

Buyer’s TFN:

# If the deposit is to be invested please confirm/let us know your tax file number.

Purchase Price:

#

Deposit:

The deposit amount is # which must be paid by #.

Deposit holder:

#

Finance:

The contract #[is/issubject to finance. The Finance Date is #.

Building/Pest Inspections:

The contract #[is/is subject to a building/pest inspection. The Inspection Date is #.

Pool Safety:

The contract #[is/issubject to a pool safety inspection. The Pool Safety Inspection Date is #

Settlement Date:

Settlement under the contract is due on #.

Lease/tenancy details:

The property #[is/is being sold subject to a tenancy.

Included Chattels:

#

Excluded Fixtures:

#

Encumbrances:

#[Explain

Present Use:

The contract states the Present Use of the property is #[Present.

Special Conditions:

#

Purpose of Purchase:

Please confirm you are purchasing the property #[as

CRITICAL DATES We have calculated the following important contract dates. Time is of the essence in your contract, which means that you must meet the deadlines for performance set out in the critical date schedule below.

-3Failure to meet the time deadlines could have significant adverse consequences for you, for example, the seller may, in some circumstances, be entitled to terminate the contract, forfeit your deposit and claim damages. If you do not agree with our calculation of critical dates please tell us immediately. We will diarise the dates. We suggest you also diarise the dates because it is your responsibility to take action where noted below:#[NOTE Item

Due Date

Who is responsible to action – Buyer or Lawyer?

Option exercise date

#

You must give instructions. We will give the notice.

Contract Date

#

Date to be noted by all.

Payment of deposit by: 

Initial deposit

#

You must pay initial deposit.



Balance Deposit

#

You must pay balance deposit. #[OPTION]If you have not already paid any instalment of the deposit, please provide to us or the Deposit Holder a cheque for the amount due made payable to the Deposit Holder immediately.

Expiry of cooling off period

#

If you have any concerns about your property you should tell us in the cooling off period. You are entitled to terminate in the cooling off period but if you do the seller may deduct the termination penalty of 0.25% of the purchase price from the deposit. If you terminate and later decide you would like to purchase the property, there is a risk that the seller will not be willing to re-enter into a contract with you. If you decide to terminate then you must give us instructions to terminate before expiry of the cooling off period, allowing sufficient time for us to give notice.

Building and pest inspection date

#

You must obtain the building and pest inspection report and tell us whether it is satisfactory, preferably on the day before the inspection date, however, if this is not possible, by 12noon on the inspection date to allow sufficient time for us to give notice.

Pool Safety Inspection Date

#

You must obtain a pool safety inspection and tell us whether or not a Pool Safety Certificate is in

-4-

effect and if not, whether you wish to waive the benefit of the condition, or wish to terminate the contract on the grounds that you are not satisfied with the results of the inspection. You must tell us the day before the due date, however, if this is not possible, by 12 noon on the Pool Safety Inspection Date to allow sufficient time for us to give notice. Finance date

#

You must apply for finance and tell us whether finance approval is satisfactory, preferably on the day before the finance date, however, if this is not possible, by 12noon on the finance date to allow sufficient time for us to give notice.

Due diligence date

#

You must tell us whether or not you are satisfied with due diligence preferably on the day before the due diligence date, however, if this is not possible, by 12 noon on the due diligence date to allow sufficient time for us to give notice.

If a unit – last day to terminate for deficiency in disclosure or breach of implied warranties under the contract

#

Refer section 10 for explanation of termination rights in relation to deficiencies in the disclosure statement. It is recommended that you instruct us immediately after the contract date to undertake a body corporate search to ascertain if there is any breach of the warranties given by the seller in relation to any defects, body corporate liabilities or other affairs of the body corporate likely to materially prejudice you. If a breach is discovered, and you wish to rely upon the breach to terminate the contract you must instruct us before this date to give notice in writing to the seller terminating the contract.

Date for payment of transfer duty

#

You must provide cleared funds or a bank cheque for payment of duty and (if applicable) declaration for first home concession by this date. See paragraph 9(d) (Transfer Duty) for the amount.

Settlement date

#

We will arrange settlement – You are responsible to:

do everything your bank requires for settlement; and



provide any additional funds required for settlement. Note that any additional funds you provide to us must be cleared funds. You should tell us prior to settlement of any arrangements. See paragraph 3.7 of the Booklet for further explanation.

-5-

4.

WHAT DO YOU NEED TO DO NOW? (a)

Read this letter and the Booklet Please read the information in this letter and the attached Residential Conveyancing Booklet for Buyers (“the Booklet”) as soon as possible. The Booklet contains important information about the conveyance and if you have any queries or questions about any of the information provided to you, please call us.

(b)

#[OnlySign Contract If there are any matters of particular concern in relation to the contract then you should let us know prior to signing, as we may be able to negotiate the inclusion of a special condition in the contract. If, after considering the matters raised in this letter you wish to proceed with the purchase, then please sign the contract by following the steps set out in the attached checklist and return all documents and a cheque payable to “#[deposit” for the deposit to our office. We will then submit the contract for execution by the seller and send the deposit to the deposit holder. Note that the contract is not binding until it has been executed by both the buyer and the seller and acceptance communicated, generally by return of the executed contract.

(c)

Insurance The property will be at your risk from 5:00pm on the first business day after the contract date. We therefore recommend that you immediately arrange insurance cover so that it is in place from when the property is at your risk. To ascertain what should be covered by insurance refer to the explanation on insurance in the Booklet.

(d)

Questionnaire Answer the questionnaire and return it to us as soon as possible.

(e)

Checklist Read the checklist. If you don’t attend to some of the matters in the checklist you may not be able to complete the contract on time and may give the seller an ability to terminate the contract, delay settlement or claim for damages from you.

(f)

General Please: help us by giving clear instructions;  tell us if you have any concerns about your matter or the property;  let us know if your contact phone number, email or address changes. You must be contactable at all times during the course of this matter.

-65.

IDENTITY We are required to obtain proof of your identity unless you have previously provided this to us. Please forward copies of two forms of photo identification (e.g. driver’s licence, passport or other identification card) to us for our records. #[OPTION If the contract is to be signed by an attorney, please forward a copy of the power of attorney and confirm that it has been registered and has not been revoked. [Note to author – make sure you obtain original/registered POA.] #[OPTION If you are purchasing as the trustee of a trust, then please forward the original trust deed to us as we will require it for registration purposes.

6.

SEARCHES AND SELLER’S DISCLOSURE We undertake various searches to establish whether the seller has complied with its disclosure obligations and that the warranties in the contract are correct. We undertake initial searches and then during the course of the conveyance carry out further searches. (a)

Result of initial searches We have conducted the following initial searches: Title search (lot) - #[OPTIONThis search confirms:

that the seller is the registered owner of the property;



the title details in the contract match the search results; and



there are no undisclosed encumbrances and/or other interests registered on the title to the lot, except for:o

a mortgage registered no. # to # Bank. We will require a release of this mortgage at settlement;

o

[other].

[Note to author – consider all encumbrances recorded on title, for example, mortgage, lease, easement, building management statement, caveat, settlement notice, profit á prendre, covenant, writ or warrant of execution.]  #[IfCompany search of seller – This search confirms the name of the seller and ACN accords with that stated on the title to the property. #[Detail  Registered Plan –The registered plan shows the lot you are purchasing, highlighted. We confirm the area of the lot is #. Please initial the plan where indicated and return it to us to confirm this is the correct lot. If it is not the correct lot, please tell us immediately.  Administrative Advices - #[If [Note to author - You must thoroughly investigate all administrative advices and advise your client of any rights or obligations that arise pursuant to the administrative advice. For example, an administrative advice may disclose that land is declared to be acquisition land under the Queensland

-7Reconstruction Authority Act 2011 (Qld) which prevents disposal of the land to any person apart from the Queensland Reconstruction Authority. If the land is declared to be acquisition land, the Buyer may be entitled to terminate the contract by giving notice no later than 2 Business Days prior to the Settlement Date. You need to consider the buyer’s position, advise the buyer of any termination rights, the timeframes for exercising those rights and obtain instructions].  Encumbrances - #[If. 

Registered encumbrances disclosed in contract [Author to obtain copies of and explain leases, easements, and other registered encumbrances recorded on title and noted as encumbrance in contract.]



Registered encumbrances to be released at settlement [Author to identify mortgages, caveats and other registered encumbrances which are not disclosed in the contract and are to be released at settlement.]



Unregistered encumbrances [Author to explain any unregistered encumbrances discovered by search or enquiry, such as sewerage or drainage lines on the property.]

 Dividing Fences/Trees – The seller is obliged to give you (prior to you entering into the contract) copies of any applications to or orders of the Queensland Civil and Administrative Tribunal (“QCAT”) in relation to trees affecting the property. The contract indicates that the Property [is/ is not] affected by any QCAT application or order in relation to trees on the Land. Our search of the QCAT tree register [reveals # /does not reveal] the presence of orders in relation to trees. If copies of tree applications or orders are not given to you prior to your entry into the contract, then you may have the ability to terminate the contract at any time before settlement. If there are tree applications or orders affecting the property and they have been given to you by the seller before you enter into the contract then you can be obliged to respond to the QCAT application or complete work specified in an order which has not been completed by the seller. The contract [does/does not] contain special conditions or other disclosure of any applications or notices relating to dividing or pool fences. Our search of the QCAT minor civil dispute matters reveals that there [are / are not] any existing orders relating to fencing disputes. If these applications or orders are not finalised and/or complied with prior to settlement, then you may have a right to terminate the contract or claim compensation for breach of the seller’s warranties. [#Check whether there is any disclosure or amendment in the contract which may alter this position – check any special conditions]. Unfortunately the QCAT searches above do not reveal the presence or otherwise of any applications in relation to trees or fences that relate to the Property that may not yet have resulted in an order. These applications can only be discovered by a physical search of the QCAT register. We recommend that you instruct us to have a search agent conduct this search.

-8Please contact us immediately with details of any disputes, notices, applications or orders relating to dividing fences or trees given to you or of which you are aware so that we can advise how they will affect you and what remedies you may have. (See Booklet for further information.)  #[OPTIONTitle search (common property) –  #[OPTIONThis search confirms:

there is no mortgage registered over the title to the common property;



there are no undisclosed encumbrances registered over the title to the common property which adversely affect the lot;

 Community Management Statement – The CMS registered for the scheme:

states that the regulation module which applies to the scheme is #;



specifies the contribution schedule lot entitlement (“CSLE”) is # and the aggregate CSLE is #;



specifies the interest schedule lot entitlement (“ISLE”) is # and the aggregate ISLE is #;



#[if for a scheme established prior to 14/4/2011, where CSLE are not equal, contains an explanation in Schedule A as to why CSLE are not equal (if established before 4 March 2003, no explanation is required);



#[If for a scheme established on or after 14/4/2011, or an adjusted scheme:(A)

in respect of CSLE states:(1)

that the CSLE are calculated on the # [equality/relativity] principle; and

(2)

# if equality principal and not equal – explains that the CSLE are not equal for the following reasons #.

# if relativity principle - includes sufficient detail to show how calculated. (B)

in respect of the ISLE states # [that the ISLE reflect market values] / [that the ISLE do not reflect market values for the following reasons #].



sets out the by-laws in Schedule C;



specifies the following as body corporate assets:#



#[delete specifies exclusive use by-law #[refer.

We recommend that you read the detailed explanation of these items in the Booklet. (b)

Pool Safety

-9Refer to the Booklet for an explanation on pool safety and what constitutes a pool. #[OPTION Please tell us whether there is a pool on the property, or if a unit, a shared pool on the scheme land. #[OPTION There is no pool on the property or on scheme land and you do not need to consider pool safety. #[OPTION There is a pool on the property and the seller has given or promised to give you a Pool Safety Compliance or Exemption Certificate. There are no requirements under the contract in relation to pool safety, however, if the seller has not or does not give you a current Pool Safety Compliance or Exemption Certificate at or prior to settlement you are entitled to terminate the contract. #[OPTION There is a pool on the property however, the answer to the questions in the contract are #not. This means that on or before the pool safety inspection date you need to obtain a pool safety inspection and tell us whether: a Pool Safety Certificate is in effect;  you wish to waive the benefit of the condition; or  you are not satisfied with the results of the inspection and wish to terminate the contract. If so, please send us a copy of the pool safety inspection report as we will need to determine whether your decision is reasonable prior to terminating the contract. #[OPTION If there is no pool on the scheme land you have no further obligations. If there is a pool on the scheme land, we need to undertake a search to determine if a Pool Safety Compliance or Exemption Certificate is in effect. If a Pool Safety Compliance or Exemption Certificate is not in effect, the body corporate must obtain one. (c)

What searches should be obtained? We have set out in Table 1 of the Annexure a list of searches that we recommend you undertake in respect of the property (“Standard Searches”). We have set out in Table 2 of the Annexure some additional optional searches for you to consider (“Optional Searches”). Please immediately telephone us or return Table 2 Optional Searches duly completed, if you would like us to undertake any of these Optional Searches on your behalf. If we do not hear from you in this regard we will assume that you do not want us to undertake any of the Optional Searches and we will only undertake the Standard Searches on your behalf. If there are matters regarding the property of particular concern or importance to you or your financier then you should discuss this with us so that we can determine whether appropriate investigations can be made.

(d)

When should we carry out searches? We have recommended that searches be ordered at the time shown in the table which may be prior to satisfaction of the building/pest inspection and finance dates under the contract. Although there is a risk that the cost of the searches will be wasted if the contract doesn’t proceed, the searches ought to be ordered as suggested to ensure search results are available prior to settlement. #[OPTIONWe confirm your telephone instructions that we should proceed to undertake these searches immediately.

- 10 #[OPTIONWe confirm your telephone instructions that we should wait until # to undertake the searches. We confirm our telephone advice that there are real risks in holding off because some of the search results may not be received in time for you to take advantage of the rights under the contract regarding termination and compensation. We strongly request that you reconsider this decision and if upon consideration you change your mind, please telephone us immediately so we can instigate the searches as soon as possible. (e)

What if there are issues with the search results? Note that despite undertaking certain inquiries which may reveal adverse impacts on the property, you will not be able to terminate the contract in all cases. For example, the discovery of unapproved structures or flooding does not give you a right of termination or a right of compensation from the seller. We have highlighted those searches in Tables 1 and 2 which do not give rise to termination or compensation rights under the contract. Despite this, searches are still undertaken so that you are aware of your legal obligations and well informed of the condition of the property.

7.

LAWYER'S CERTIFICATE - PROPERTY AGENTS AND MOTOR DEALERS ACT 2000 (PAMDA) NOTE – A LAWYER MUST GIVE THE ADVICE BY PHONE OR IN PERSON AND CAN THEN SEND THE LAWYER’S CERTIFICATE We are required under PAMDA to provide you with a Lawyer’s Certificate. We confirm that:-

8.

(a)

our firm is independent of the seller, the seller’s agent and anyone else involved in the sale or promotion of the sale or provision of a service in connection with the sale of the property and that our firm does not have a business, family or other relationship with any of those persons;

(b)

our firm has not received and does not expect to receive a benefit in connection with the sale or for promoting the sale or for providing a service in connection with the sale of the property other than professional costs and disbursements payable by you; and

(c)

we have explained to you the purpose and nature of the certificate namely:(i)

to show that we do not have any relationship with the seller or any of the other parties specified in item (a) above; and

(ii)

we will not be receiving any benefit from the sale, other than the payment by you of our professional costs and disbursements associated with acting for you in the conveyance.

PAMDA COMPLIANCE - REFER PAMDA CHECKLIST PAMDA requires that a certain process be followed and certain directions be given by a seller in the formation of a contract. #[OPTION 1 - CONSIDER WHERE INITIAL DELIVERY HAS OCCURRED OR CONTRACT SIGNED - PAMDA PROCESS COMPLIANT- ] We confirm that on the face of the contract documents and the information provided to us the PAMDA requirements for entering into a relevant contract appear to have been complied with because:(a)

a PAMD Form 30c Warning Statement which complies with PAMDA has been properly attached at the time of signing;

- 11 (b)

#a BCCM Form 14 Information Sheet which complies with the BCCM Act has been properly attached; and

(c)

the seller properly directed your attention to the Warning Statement, #[and and the proposed relevant contract when giving the proposed relevant contract to you; or

(d)

termination on the grounds of PAMDA non-compliance is barred because:- #[OPTION (i)

you have signed the Warning Statement #[and and acknowledged you have done so before signing the relevant contract; and/or

(ii)

more than 90 days has elapsed from the day you received the relevant contract.

#[OPTION 2 – CONSIDER WHERE INITIAL DELIVERY HAS OCCURRED OR CONTRACT SIGNED - PAMDA COMPLIANCE NOT OBVIOUS - WE NEED MORE INFORMATION] It is unclear from the contract documents provided to us whether the PAMDA requirements for entering into a relevant contract have been complied with. We need more information from you. There is a 90 day time limit from the date the buyer receives a copy of the relevant contract on or before which any rights you have to terminate must be exercised. Please therefore telephone #[solicitor on #[telephone immediately to discuss. #[OPTION 3 – CONSIDER WHERE INITIAL DELIVERY HAS OCCURRED OR CONTRACT SIGNED - NOT PAMDA COMPLIANT - check cautiously!] It would appear on the face of the contract documents and information provided to us that the seller has not complied with the requirements of PAMDA. We come to this conclusion because:#[State; and #[the; In light of the above it would appear that under the law as it currently stands, you may be entitled to terminate the contract based on the seller’s non–compliance with PAMDA before you take any further action in the conveyance. A decision to terminate the contract based on non-compliance with PAMDA is a serious decision and you need to consider the following:(a)

Our advice is based upon the information which is available to us at this time. There may be other documents or other actions which have been taken (for example by the agent) that would rectify the PAMDA deficiency that we have identified.

(b)

If contemplating termination it would be prudent to give us instructions in writing as soon as possible. Your right to terminate will be lost if:-

(c)

(i)

you do not act within 90 days after receiving a copy of the relevant contract; or

(ii)

settlement takes place; or

(iii)

you take further steps in the conveyance which are sufficient to waive your right to terminate.

We cannot predict whether the law, its interpretation by the courts or any future actions in the conveyance will affect your rights, and, in turn, your ability to terminate the contract at a later date.

- 12 (d)

You may also incur additional professional fees not included in the scope of our retainer if the seller disputes your right to terminate or you need to recover the deposit and those fees, or a portion of them, may not be recoverable.

#OPTION 4 – CONSIDER WHERE INITIAL DELIVERY HAS OCCURRED, CONTRACT NOT SIGNED – NOT PAMDA COMPLIANT It would appear on the face of the contract documents and information provided to us that the seller has not complied with the requirements of PAMDA. We come to this conclusion because:#[State; and #[the; Where the proposed relevant contract is not yet signed and the seller’s offer does not comply with PAMDA:(a)

the seller has the option (if the seller becomes aware of the non-compliance) to withdraw the proposed relevant contract; and

(b)

you have the option of not proceeding.

If you do intend to proceed with the purchase your options are:(a)

proceed with execution by following the directions in the checklist. In such case, #[OPTION by signing the Warning Statement, #[and you negate any right to terminate that you may have had; #you may have an ongoing right to terminate the contract as a result of the PAMDA noncompliance we have identified, however, because you are taking further steps in the conveyance, you should not assume any right to terminate will continue to exist; or

(b)

notify the seller’s solicitor of the non-compliance with PAMDA and seek rectification, however, because the seller is not obliged to resubmit the contract you may not be able to proceed.

Please telephone us to discuss immediately. #OPTION 5 - CONTRACT NOT SIGNED - IN DRAFT ONLY The proposed relevant contract has been submitted to us as a draft for your consideration. We will need to ensure that the PAMDA process is complied with in execution of the proposed relevant contract. 9.

RETAINER, PROFESSIONAL COSTS AND EXPENSES (a)

Retainer The work we will perform for you is set out #OPTION. # Our retainer includes all matters which are usual and necessary as part of the conveyancing process. Our retainer does not extend to matters which are beyond the attendances which are usual and necessary in the conveyancing process. A list of the matters we do not consider to be usual and necessary as part of the conveyancing process are included in the Booklet.

- 13 (b)

Professional costs #[OPTIONOur professional costs for the work specified in our retainer are:$# plus GST. If any issues arise which are outside the scope of our retainer we will charge additional fees on a time basis according to our usual hourly rates. #[OPTION Our professional costs are set out in our costs disclosure and retainer.

(c)

Outlays We estimate that we will incur $#[amount] in search fees and sundry costs (our outlays) on your behalf. Please immediately forward a cheque to our office in the sum of $#[amount], to cover our outlays. The cheque should be made payable to “# Trust Account”. Alternatively, you can deposit this amount to our trust account. Our trust account details are set out in the checklist.

(d)

Transfer Duty #[OPTIONTransfer duty (based on the assumption that the property will be your first principal place of residence) is $#. Please advise if this assumption is incorrect. See Booklet for further information. You will need to sign the enclosed declaration for first home transfer concession before a Justice of the Peace or a Solicitor. We ask that you read the information that has been inserted to ensure that the details are correct. You must return the signed declaration to us on or before the date for payment of duty to enable us to assess and pay the duty by the due date. #[OPTION Transfer duty (based on the assumption that the property is vacant land and will be used to construct your first principal place of residence) is $#. Please advise if this assumption is incorrect. See Booklet for further information. You will need to sign the enclosed declaration for first home vacant land transfer concession before a Justice of the Peace or a Solicitor. We ask that you read the information that has been inserted to ensure that the details are correct. You must return the signed declaration to us on or before the date for payment of duty to enable us to assess and pay the duty by the due date. #[OPTIONWe note that you are purchasing the property #[as. You will be unable to claim any transfer duty concessions in this instance. Transfer duty calculated on this basis is $#. Please advise if our assumptions are incorrect. [for OPTIONS 1,2 &3] Duty must be paid and the transfer stamped by the earlier of:

30 days from when the contract becomes unconditional; or



settlement (if obtaining finance).

- 14 Our calculation of the date for payment of duty is in the critical dates – refer clause 3 of this letter. Penalty interest accrues daily if the contract is not stamped on time. So that we can comply with this requirement we ask that you forward to us a bank cheque in the amount of $# made payable to the “Commissioner of State Revenue” and the declaration #[DELETEno later than #. If you are purchasing the property as an undisclosed trustee or on behalf of another entity, you must let us know so that we may consider whether any other documents to register or record your interest are required. There can be significant tax and duty implications arising from any such transactions and, unless specifically instructed, advice about this is beyond the scope of our engagement. (e)

Registration Fees Registration fees payable to the Department of Environment and Resource Management on the purchase will be $#[registration. #[OPTIONYour financier will lodge the transfer for registration along with the mortgage you grant in favour of the financier. The financier will either seek payment of these fees from you directly or charge them to your loan account. You should follow up your bank one month after settlement to ensure the transfer has been registered. #[OPTIONBecause you are not obtaining finance to complete the transaction, we will lodge the transfer for registration following settlement. You will need to provide us with a cheque payable to “Department of Environment and Resource Management” in payment of the registration fees. Alternatively, you can deposit cleared funds to our Trust Account in payment of those fees, when providing us with the duty or settlement funds.

10. #[OPTIONREVIEW OF BCCM DISCLOSURE STATEMENT #[OPTION We have reviewed the disclosure statement provided with the contract and note:

the disclosure statement appears substantially complete;



a copy of the CMS #[did/did accompany the disclosure statement;



the details contained in the disclosure statement (including CMS accompanying the disclosure statement), when compared to the registered CMS appear #[OPTION [accurate] / [are different in the following respects #]. [Note to author: if registered CMS is different from disclosed CMS you need to consider whether buyer is materially prejudiced and termination rights apply (refer to the Booklet)];



#[OPTION[if a specified 2 lot scheme, the person responsible for keeping records under the two-lot schemes module is #] / [the # secretary/body corporate manager is #];



[Note to author – check that this is correct – alter as necessary] the administration fund levy payable is #[$....... This levy based on CSLE of # out of an aggregate of #, except for the amount of [$ ………. per ………..] for insurance, which is based on the ISLE of # out of an aggregate of #;

- 15 

the sinking fund levy payable is #[$....... This levy is based on a CSLE of # out of an aggregate of #;



the disclosure statement #a statement that the CSLE and ISLE are set out in the CMS;



there #[are/areany improvements on common property for which you are responsible;



there #[are/are any assets recorded in the body corporate register;



the disclosure statement states that there is #[delete [a committee for the body corporate] / [a body corporate manger engaged to perform the functions of a committee].



the disclosure statement #[is/is signed;



#[OPTIONWe do not know whether the party who signed the disclosure statement was properly authorised. If you want us to make further enquiries please contact us immediately.

If the disclosure statement contains omissions or is inaccurate and you would be materially prejudiced if required to complete the contract, then you may have rights to terminate. The time you have to terminate varies depending on the deficiency identified. The first of your termination rights expires 14 days after a copy of the contract is received, therefore, if you wish to terminate, you must tell us immediately. The only way to verify all the information disclosed is to conduct a full search of the body corporate records. We therefore recommend that a full search of the body corporate records be obtained. #[OPTIONWe have not been given the disclosure statement. If you have it in your possession, please forward it to us immediately. If a disclosure statement has not been given, then you may be able to terminate the contract at any time up until settlement. 11. #[IFREVIEW OF CARETAKING AND LETTING AGREEMENTS We have not undertaken a review of the caretaking and letting agreements for the scheme on your behalf. This is not included in the scope of our retainer. Please read our comments about these documents in the Booklet and let us know if you wish us to undertake a review of these documents. If you have any queries about any of the matters raised in this letter please telephone #[contact] on #[contact. Yours faithfully,

- 16 CHECKLIST – WHAT DO YOU NEED TO DO NOW? #[OPTIONAL]Prior to signing the contract, or expiration of the cooling off period, consider obtaining an independent valuation of the property. #[OPTIONIf satisfied with the property and you wish to proceed with the purchase:

sign the buyer’s acknowledgement at the end of the Form 30c Warning Statement; then



sign the buyer’s acknowledgement at the end of the Information Sheet #[DELETE; then



sign the acknowledgement of receipt of the disclosure statement #[DELETE; then



sign the contract; then



(if applicable) sign other documents sent with the contract e.g. buyer’s acknowledgement of compliance with PAMDA; and



return all documents and a cheque payable to “#[deposit” for the deposit to our office.

Arrange insurance cover for the property. For further information see the Booklet. Diarise important contract dates. Send to us copies of your ID documents. Tell us if you are a foreign person or trustee of a foreign trust. Tell us your date of birth. Tell us if you require a higher level of town planning certificate (standard or full). Tell us if there are matters of particular concern or importance regarding the property. Tell us if you have any suspicions that the land may be contaminated. Confirm you have received the Sustainability Declaration. Tell us if you are aware of any disputes between the seller and neighbours regarding fencing or trees. Tell us if you are aware the seller has conducted work on the property as an owner builder. Tell us if there is a swimming pool on the property or on the scheme land and whether you are aware that a Pool Safety Compliance or Exemption Certificate is in effect. Advise if you want us to conduct any Optional Searches. Forward to us a cheque for $#[amount] for part of our anticipated outlays, payable to “#[firm Trust Account”, or alternatively make a deposit to our trust account. Our trust account details are as follows:#[insert. #[OPTIONALComplete enclosed “Questionnaire” and return to us.

- 17 Initial and return the enclosed plan to confirm highlighted lot on plan is the property being purchased. #[OPTIONAL]If there is a tenant in the property you are buying, telephone to instruct us to obtain copies of tenancy documents and make inquiries of seller regarding any tenancy. Arrange building and pest inspection reports. Provide copy of building and pest inspection reports to us prior to due date and tell us if you are satisfied with the reports. Make finance application and sign and return all necessary loan application forms to your bank immediately. Provide copy of Finance Approval to us prior to due date and tell us if you are satisfied with the terms of the approval. If purchasing as trustee, forward original Trust Deed to us. Tell us if you have a business or personal relationship with the seller or if the consideration for the sale is less than market value (this will have duty implications and will require valuations for assessment purposes – See Booklet). Make a note of when to provide a bank cheque for the duty payable to “Commissioner of State Revenue” for $#[stamp. If the first home concession applies or you are entitled to a rebate on your first home or vacant land, complete and return the declaration to us. Ask bank when you will receive mortgage documents, make a note to follow-up and when mortgage documents are available, sign all mortgage documentation and give to your bank. Make a note of when to provide the balance funds due at settlement (if balance purchase price not being provided wholly by financier). Make a note of when to provide cheque for registration fees payable to “Department of Environment and Resource Management” for $#[registration (if not obtaining finance). Make a note to contact us closer to settlement to tell us whether we are required to collect the keys at settlement or whether you will collect them from the agent following settlement. Telephone us if you are going away with details on how we can contact you at all times while away.

- 18 ANNEXURE Table 1 – Standard Searches Search/Enquiries

Information

Likely Cost

Appropriate time to conduct search

Title Search (lot)

Real property description, title reference, registered owner, encumbrances, registered leases, caveats location of land, encumbrances If the property is in a designated transport noise corridor.

$18.92 per search

Now & on day of settlement

$18.92 $0

Now Now

Rates information

$167.00

Local Govt. Town Planning search (Limited) (if a lot in CTS, then Standard search is recommended as per Table 2 (See Booklet for explanation). You must tell us if you want us to do the Standard town planning search. Local Govt. sewerage and drainage plans

Limited search: – summary of the provisions of planning scheme and regulatory provisions applying, any designations applying to the premises.

$111.00

Contract signed (takes 12 business days) Contract signed (takes 12 business days)

Position of sewerage and drainage pipes

Contract signed

If a pool - Pool Safety Register (necessary if a pool constructed) (Department of Local Government & Planning – State) Land Tax

Whether a current Pool Safety Certificate is in effect in respect of a pool

$16.00 – private & council (or no fee included in BCC Local Government Rates Search) $25.60 – Drainage plan only $0

$41.63

Contract signed

$28.85

Contract signed (takes 12 business days)

Registered plan Noise Corridor Search – Department of Planning and Local Government (www.dlgp.qld.gov.au) Local Govt. Rates search

Queensland Transport and Main Roads Property Search  Roads  Port authority (only if on the river)  Rail

Whether the property is subject to land tax, if there are arrears and the amount of arrears. Transport proposals currently approved by Queensland Transport.

Contract signed

Current proposals and future intentions for roads.

CLR Search/ EMR Search (EPA)

Determine if land on the Contaminated Land Register (CLR) or Environmental Management Register (EMR) and any orders

$42.80

Contract signed

QCAT search of tree register and minor civil disputes

To check for tree, dividing fences and pool fencing orders under the Neighbourhood Disputes Resolution Act 2011 or the Building Act 1975.

$0

Now

To check for tree, dividing fences and pool fencing applications under the Neighbourhood Disputes Resolution Act 2011 or the Building Act 1975.

Depends on agent engaged to conduct search.

As close as possible to settlement, ensuring enough time to receive results prior to settlement.

(www.qcat.qld.gov.au) Physical inspection of QCAT records in QCAT registry

- 19 Energex/ Ergon

Court Registers  Supreme & District courts  Bankruptcy register

ASIC (If seller a company) ASIC National Names Index Telco (Note – If high rise unit, unlikely to be necessary)



If the property is connected under normal tariff conditions;  if the property is connected under guarantee conditions and the amount of the guarantee;  if the property is not connected, upon what conditions it may be connected;  whether there are any underground cables running through the property.  If an action has been commenced by or against the seller;  the nature of any action commenced;  copies of all originating summons, interlocutory proceedings, orders, appeals, bills of costs and writs;  the bankruptcy register should provide information concerning name of bankrupt, dates of bankruptcy and orders.  Details of seller corporation including directors, ABN and charges.  ABN, whether seller currently registered or not. Major telecommunication network cables (including Optic Fibre) belonging to Telstra, Optus, UEComm, AAPT and PowerTel and other providers that pass through the property and information on communications network that may impact on the property.

Energex $42.26 Ergon $27.45

Contract signed (takes 14 business days)

Supreme & District court online searches – nil

Contract signed

Bankruptcy register - $24.72

$17.05 per search

Now & on day of settlement

$0

Now & on day of settlement

$79.50

Now

Levy information, by-laws, lot entitlements, insurances, details of management and letting agreement, referee’s orders, special levies. Levy information, by-laws, lot entitlements, insurances. Orders made against a community titles scheme. Any encumbrances registered on common property, e.g. mortgages, easements. Confirm lot entitlements, exclusive use bylaws, details of body corporate service agreements, scheme by-laws. Governs relationship of the scheme with other volumetric lots on the property. Shows any shared areas or shared services. -To check for tree, dividing fences and pool fencing orders under the Neighbourhood Disputes Resolution Act 2011 or the Building Act 1975 affecting the body corporate.

$150 - $400, depending on agent.

Contract signed

$55.00

Contract signed

$17.00

Contract signed

$18.92

Contract signed

$46.10

Contract signed

$46.10

Contract signed.

$0

Now

To check for tree, dividing fences and pool fencing applications under the Neighbourhood Disputes Resolution Act 2011 or the Building Act 1975.

Depends on agent engaged to conduct search.

As close as possible to settlement, ensuring enough time to receive results prior to settlement.

#[OPTION Body Corporate Records Search Form 13 Information Certificate Body Corporate Orders from Body Corporate Commr. Title search (common property) for scheme Community Management Statement Building Management Statement

QCAT search of tree register and minor civil disputes for common property. (www.qcat.qld.gov.au) Physical inspection of QCAT records in QCAT registry for Body Corporate.

- 20 Local Govt. building records search – Certificate of Classification

Whether the classification of the building allows you to use the premises for your intended use (for example, if purchasing for permanent residence as opposed to temporary letting, that this use is allowed under the certificate of classification).

Certificate of Classification $64.50

Now

- 21 Table 2 – Optional Searches - Please return to us as soon as possible with instructions on additional searches [tick  if required] Search/Enquiries Information Likely Cost Appropriate  time to conduct search Heritage Register (QLD EPA) (relevant if dwelling more than 50 years old). Queensland Building Services Authority Local Govt. building records search (advisable if there is a dwelling on the property)

Current listing on register, heritage agreements, prohibitions on use.

$33.70

Contract signed

Details of insurance cover for the property under the QBSA Act. Details of building approvals and certificates (including certificate of classification).

$35.95

Contract signed (takes 6 days) Contract signed

*Local Govt. flood search (advisable if you intend to build) Local Govt town planning search (Standard)

Whether the property has flooded and the level of the last flood.

Local Govt town planning search (Full)

Local Govt. heritage search (relevant if dwelling or building more than 50 years old) Local Govt. Vegetation Protection Orders Special Water Meter Reading Powerlink

*Coastal Management Search (advisable if property is located in a coastal area – beach or harbour)

Building Records search $66.50 Inspections Search $66.50 Certificate of Classification (if relevant) $66.50 Property Notices (Development and Planning) Search $66.50 $0

Contract signed

As per limited search plus copy of decision notices for current and declined development approvals, copy infrastructure agreements, infrastructure charges details. As per limited and standard searches plus statement re: (non)fulfilment of any current development conditions, details of infrastructure agreements, advice of prosecutions for development offences. Whether property listed on heritage register or any heritage agreements in existence.

$487.00

Contract signed (takes 12 business days)

$2,650.00

Contract signed (takes 30 business days)

Search City Plan

Contract signed

Whether vegetation on property is protected or subject to an order. Actual water consumption since last meter reading. Information concerning the Authority’s future interest in the property, easements and transmission lines. Whether the land is within a coastal management control district or an erosion-prone area and therefore the provisions of the Coastal Protection and Management Act 1995 applies.

$0

Contract signed

$62.00

Contract signed (takes 14 days) Contract signed (takes 12 days)

$27.50

$0

Contract signed

- 22 *Coastal Protection (Sanctions on construction of jetties) National Heritage Listing *ATSI Cultural Heritage Register and Database (DERM) Mining and other Geothermal tenures (advisable in known mining area) *Vegetation Management (State)

Searches to discover unregistered interests that may affect the property e.g.  sewerage or drainage lines;  access rights for geothermal exploration or production;  exploration rights for mining



the date of any sanction issued;  nature of the works sanctioned. Information on indigenous, natural and historic sites on the register. Information about the location of significant ATSI cultural heritage sites. Details of mining or petroleum gas storage or geothermal tenures granted.

TBA (if required)

Contract signed

TBA (if required)

Contract signed

$0

Contract signed

$74.75

Contract signed

Details of : Vegetation Clearing applications  Regrowth Vegetation Notifications  Vegetation offsets (Advisable if property is being purchased for development.)  Unregistered interests could affect your proposed use of the property.  Your rights in the event of adverse results may be limited, so if you are concerned it is advisable to conduct searches as soon as possible.  Some searches may be covered by standard searches - if so, you may consider ordering standard searches early.  You are responsible for the search costs which vary depending on the search authority.  You must let us know if you require these additional searches to be carried out.

TBA (if required)

Contract signed

Depends on search, available on request.

ASAP

* = no rights under contract if search results are adverse.