Although under the general law and the Conveyancing (Sale of Land) Regulation 2017 (NSW) there are significant disclosure requirements on vendors in that vendors need to disclose “prescribed documents”, a purchaser should, after exchange, make enquiries to determine whether any of the “prescribed warranties” have been breached. See Purchaser's enquiries.

Under the 2017 Edition of the standard contract for sale of land from the Law Society of NSW, a purchaser between exchange and completion performs requisitions, a task that was originally designed for the old system by making enquiries that are aimed to show a defect in the vendor's title. That risk is reduced in the Torrens system and some jurisdictions have moved to abolish requisitions. However, the process continues in New South Wales. It is a process that has time constraints. The consequences of failing to comply with the constraints or a revelation that there is a defect in title can have significant consequences on a conveyancing transaction. See Requisitions.

After the exchange of contracts, purchasers have 3 months to stamp a contract. Stamp duty is an important part of the conveyancing process. Without stamping, a transfer cannot be registered. A mortgagee may decline to advance funds. A party cannot sue on a contract unless it has been stamped. Failure to stamp within the required time frame can result in the Office of State Revenue imposing fines and penalties on the purchaser. A legal practitioner who fails to advise a client of the obligation to stamp is likely to be negligent.

Duty is payable for "off the plan" purchasers within 3 months from the earlier of:

• the date of completion of the agreement;

• the assignment of the whole or part of the purchaser’s interest under the agreement; or

• the expiry of 12 months from the date of the agreement.

See Stamp duty.

An issue for purchasers to consider between exchange and completion is whether to lodge a caveat with the Registrar-General to protect its “beneficial interest” in the land until completion. The question is more acute given recent comments in Black v Garnock and the practice in New South Wales of not to caveat. In light of that judgment, a decision not to caveat could be negligence by a practitioner. See Caveats.

Purchasers can protect their investment after exchange not only by lodging and registering a caveat but by insuring their interest in the land. It is prudent to do so, as although risk remains with the vendor under the Conveyancing Act 1919 (NSW), until settlement there are risks in a purchaser trying to claim an interest under the proceeds of a vendor’s insurance policy. See Insurance.

Standard provision 22 is a promise that the Foreign Acquisitions and Takeovers Act 1975 (Cth) does not apply to the transaction at hand. Breach of the promise gives a right to terminate the contract. If the provision does not apply, a special condition should be drafted to deal with the particular situation. See Foreign investment.

Differences between the land described in a contract and what is actually conveyed amounted to a breach of contract under the general law. A purchaser could terminate the contract and recover damages. In appropriate circumstances, equity softened the general law by being able to grant an order for specific performance while providing an adjustment in the purchase price. The standard provisions in cll 6 and 7, which can only be understood in light of the general law, provide a contractual regime for errors or misdescriptions, how claims can be made and the compensation that may flow from such errors or misdescriptions. See Misdescriptions.

The standard contract provides a mechanism to deal with “work orders” made after exchange but before settlement. In essence, if a work order is made on or before exchange of contract the vendor must satisfy the work order. If later, the vendor must pay the purchaser’s cost of compliance, but only if the purchaser complies with the work order. If the vendor does not satisfy the work order before completion it would seem that the vendor need not comply with the work order. Work orders can be made under the Local Government Act 1993 (NSW), Encroachment of Buildings Act 1922 (NSW), and the Trees (Disputes between Neighbours) Act 2006 (NSW). Rights under this clause do not merge on completion. See Work orders and notices.

During the course of a conveyancing transaction, a vendor may enter into external administration, either because a trustee in bankruptcy is appointed or because an external administrator is appointed to a corporate entity. The appointment of a trustee in bankruptcy or external administrator impacts upon a conveyance and the party with whom a purchaser is dealing with. See Insolvency.

The standard provisions are not silent on adjustments. Standard provision 14 provides useful guidance on how the income and outgoings of a property are to be adjusted between vendor and purchaser and how the settlement cheques are to be drawn. See Adjustments.

Since 2000, one of the most important aspects of a conveyancing transaction is the treatment of GST. Practitioners need to be aware of GST concepts and what triggers GST. On the front page of the standard provisions a vendor is required to nominate the GST treatment of the property being sold. The options include whether it is:

• a taxable supply in full or in part;

• a GST-free supply because the supply is the supply of a going concern or the sale of farm land; or

• input taxed because the supply is of residential premises.

Depending on the transaction, special conditions will need to be drafted and in so doing care must be taken to ensure that there is no inconsistency with the standard provisions. See GST.

It is important that the contract clearly identifies if there is a tenancy because the common law presumption is that a property is sold with vacant possession. The coversheet of the Law Society of NSW — Contract for sale of land — 2017 Edition requires the vendor to indicate whether the property is sold subject to tenancies.

See Tenancies.

In Victoria, a vendor is required to provide information under s 32 of the Sale of Land Act 1962 (Vic), and there are some limited warranties in the standard form contract. After exchange, a purchaser should make enquiries to determine whether the information provided in the vendor's statement is accurate, and to test the warranties under the contract. See Purchaser’s enquiries.

It is no longer the practice in Victoria for a purchaser to make requisitions. Instead, there are warranties in the standard form contract which cover issues that used to be the subject matter of requisitions. See Requisitions.

In NSW, after the exchange of contracts, purchasers have three months to stamp a contract. However, in Victoria, the State Revenue Office stamps the transfer instead and the transfer must be stamped 30 days after settlement.

Stamp duty is an important part of the conveyancing process. Without stamping, a transfer cannot be registered. While in NSW, a mortgagee may decline to advance funds, in Victoria, the mortgagee would usually allow for the stamp duty and deduct it from the loan funds.

A party cannot sue on a contract unless it has been stamped. Failure to stamp within the required time frame can result in the Office of State Revenue imposing fines and penalties on the purchaser. A legal practitioner who fails to advise a client of the obligation to stamp is likely to be negligent. See Stamp duty.

An issue for purchasers to consider between exchange and completion is whether to lodge a caveat with the Registrar-General to protect its “beneficial interest” in the land until completion. In Victoria, the usual practice is to lodge a caveat. See Caveats.

In Victoria, the risk remains with the vendor under general condition 24.1 of the standard form contract unless a special condition has been included to reverse the risk, in which case the vendor must provide information concerning insurance held in respect of the property in the vendor's statement. In practice, it is very unusual for a vendor to reverse the risk though. Irrespective, it is still prudent for a purchaser to insure their interest in the land. See Insurance.

In Victoria, the standard from contract does not address the application of the Foreign Acquisitions and Takeovers Act 1975 (Cth) (like it does in NSW), but this is usually the subject matter of a special condition which typically provides that the Act does not apply. See Foreign investment.

In Victoria, the standard form contract provides that a purchaser may not terminate nor claim compensation for any misdescription. This is subject to the rule in Flight v Booth however, that would entitle a purchaser to avoid the contract if there was a substantial discrepancy. See Misdescriptions.

In Victoria, the standard form contract (general condition 21) provides that the purchaser is responsible for any notice, order, demand or levy imposing liability on the property that is issued or made on or after the date of the contract that does not relate to periodic outgoings. The purchaser may enter the property to comply with that responsibility where action is required before settlement. See Work orders and notices.

During the course of a conveyancing transaction, a vendor may enter into external administration, either because a trustee in bankruptcy is appointed or because an external administrator is appointed to a corporate entity. The appointment of a trustee in bankruptcy or external administrator impacts upon a conveyance and the party with whom a purchaser is dealing with. See Insolvency.

The standard provisions are not silent on adjustments. Standard provision 15 provides useful guidance on how the income and outgoings of a property are to be adjusted between vendor and purchaser and how the settlement cheques are to be drawn. See Adjustments.

In Victoria, the standard form contract contains a general condition dealing with the treatment of GST. The price will be deemed to include GST unless specified otherwise. If the going concern exemption or farm land exemption applies, then the particulars of sale must specify this. See GST.

It is important that the contract clearly identifies if there is a tenancy because the common law presumption is that a property is sold with vacant possession. See Tenancies.

Sales and purchases — Vic — Acting for the purchaser between exchange and completion [L. Gaddie, Kliger Partners]

Sales and purchases — Vic — Acting for the vendor between exchange and completion [L. Gaddie, Kliger]

Vic — See Sch in the Estate Agents (Contracts) Regulations 2008 (Vic)

In Queensland, there are prescribed disclosure requirements on vendors under the general law and legislation, such as the Property Occupations Act 2014 (Qld) and the Body Corporate and Community Management Act 1997 (Qld). However, despite the vendor’s disclosure obligations, the doctrine of caveat emptor (“let the buyer beware”) applies and requires the buyer to satisfy themselves regarding the property by undertaking the relevant searches and enquiries. See Purchaser enquiries.

In Queensland, pursuant to cl 7.3 of the Real Estate Institute of Queensland (REIQ) — Contract for houses and residential land 14th Edition (REIQ contract), a buyer may not perform any requisitions or enquiries on the title. Instead the vendor gives certain warranties under the contract for sale which, if not accurate, entitles the purchaser to terminate the contract. See Requisitions.

While in NSW, after the exchange of contracts, purchasers have 3 months to stamp a contract, in Queensland, the contract must be stamped within 30 days of the agreement being made under s 19(3) of the Duties Act 2001 (Qld). Stamp duty is an important part of the conveyancing process. Without stamping, a transfer cannot be registered. A legal practitioner who fails to advise a client of the obligation to stamp is likely to be negligent. See Stamp duty. s 8, Duties Act 2001 (Qld)

In Queensland, it is common practice for purchasers, between exchange and completion, to lodge a Settlement Notice (Form 23) from the Department of Natural Resources, Mines and Energy (DNRM). The notice prevents the registration of any instrument not authorised by the notice which affects the purchaser’s interest in the lot until the notice lapses or is withdrawn, removed or cancelled: s 141(1) of the Land Title Act 1994 (Qld). The notice is effective for 60 days from the date it is deposited with the Registry (s 143 of the Land Title Act 1994 (Qld)) and gives the buyer some protection against any dealing that may be lodged after the settlement notice and before lodgment of the transfer. See Caveats.

The buyer of residential land has a caveatable interest under s 122(1) of the Land Title Act 1994 (Qld) and may decide to lodge a caveat rather than a settlement notice. However, it is common practice for legal practitioners acting for purchasers in Queensland to lodge a settlement notice.

Note under the Land and Other Legislation Amendment Act 2017 (Qld), the settlement notice will be replaced with a priority notice. This change will commence on and from 1 January 2018.

In Queensland, the property is at the buyer’s risk from 5 pm on the first business day after the contract date: see cl 8.1 of the REIQ contract. It is therefore essential to advise purchasers to immediately take out insurance cover to ensure that the buyer is protected if the property is damaged or destroyed between the contract date and the settlement date.

The Property Law Act 1974 (Qld) does however provide some protection to buyers in circumstances where the property is destroyed or damaged prior to completion. In the case of a contract for the sale of a dwelling, the buyer will be able to rescind the contract where the property is rendered unfit for cohabitation: s 64 of the Property Law Act 1974 (Qld). See Insurance.

Pursuant to cl 10.2 of the REIQ contract, the buyer warrants that either:

• the Treasurer has consented to the buyer’s purchase of the property under the Foreign Acquisitions and Takeovers Act 1975 (Cth); or

• the Treasurer’s consent is not required to the buyer’s purchase of the property.

If an acquisition is not exempt under the Foreign Acquisitions and Takeovers Act 1975 (Cth), a special condition should be inserted that makes the contract conditional on the buyer obtaining foreign investment approval. See Foreign investment.

Differences between the land described in a contract and what is actually conveyed amounted to a breach of contract under the general law. A purchaser could terminate the contract and recover damages. In appropriate circumstances, equity softened the general law by being able to grant an order for specific performance while providing an adjustment in the purchase price. The standard provisions in cl 7.5 of the REIQ contract, which can only be understood in light of the general law, provide a contractual regime for errors or misdescriptions, how claims can be made and the compensation that may flow from such errors or misdescriptions. See Misdescriptions.

Clause 7.6 of the REIQ contract deals with notices or orders issued by any competent authority (ie a council) requiring work to be carried out in relation to the property. If a notice or order is issued before the contract date, it must be complied with by the seller before the settlement date. If issued on or after the contract date, it must be complied with by the buyer. However, any work or expenditure that is the buyer's responsibility, which is required to be done before settlement, must be done by the seller unless the buyer directs the seller not to. If the seller carries out the work, the reasonable cost of the work or expenditure is added to the purchase price.

Examples of notices that cl 7.6 refers to would include notices from a local authority (council) to connect the property to a sewerage system or to destroy noxious weeds. If a land owner fails to comply with notices issued by a local authority, s 142 of the Local Government Act 2009 (Qld) allows a council to do the work and recover the costs of doing so. See Work orders and notices.

During the course of a conveyancing transaction, a vendor may enter into external administration, either because a trustee in bankruptcy is appointed or because an external administrator is appointed to a corporate entity. The appointment of a trustee in bankruptcy or external administrator impacts upon a conveyance and the party with whom a purchaser is dealing with. See Insolvency.

The standard provisions are not silent on adjustments. Standard provision 2.6 of the REIQ contract provides useful guidance on how the income and outgoings of a property are to be adjusted between vendor and purchaser and how the settlement cheques are to be drawn. See Adjustments.

Clause 2.1 of the REIQ contract provides that unless otherwise specified in the contract, the purchase price includes any GST payable on the supply of the property to the buyer. There is a notation above the reference schedule of the REIQ contract which makes it clear that if the property being sold is “new residential property” a special condition must be inserted to deal with the issue of GST liability. “New residential premises” are those which have not previously been sold or leased on a long-term lease (50 years or more). See GST.

It is important that the contract clearly identifies if there is a tenancy because the common law presumption is that a property is sold with vacant possession. See Tenancies.

While in New South Wales, there are significant vendor disclosure requirements, in Western Australia, mandatory vendor disclosure is not generally applicable. See Purchaser's enquiries.

While requisitions continue to exist in New South Wales, the standard from contract in Western Australia excludes the purchaser's right to requisitions. See Requisitions.

After the exchange of contracts, purchasers normally have 2 months to lodge a contract for an assessment of duty. Duty is an important part of the conveyancing process. Without duty endorsement, a transfer cannot be registered. A mortgagee may decline to advance funds. A party cannot sue on a contract unless it has been duty endorsed. Failure to lodge for assessment of duty within the required time frame can result in the Office of State Revenue (OSR) Western Australia imposing fines and penalties on the party liable for duty. A legal practitioner who fails to advise a client of the obligation to lodge for assessment of duty is likely to be negligent. See Stamp duty.

An issue for purchasers to consider between exchange and completion is whether to lodge a caveat with the Registrar of Titles to protect its "beneficial interest" in the land until completion. The question is more acute given recent comments in Black v Garnock. In light of that judgment, a decision not to caveat could be negligence by a practitioner. See Caveats.

In Western Australia, the common law position that risk passes on exchange of contract applies, meaning that it is prudent practice for purchasers to insure their interest on exchange. However, the standard form contract effectively provides that risk passes on settlement. See Insurance.

In New South Wales, standard provision 22 of the contract for sale of land is a promise that the Foreign Acquisitions and Takeovers Act 1975 (Cth) does not apply to the transaction at hand. In Western Australia, the standard form contract does not refer to the Foreign Acquisitions and Takeovers Act 1975 (Cth) . Any provision which is necessary to address the requirements of the Act will need to be specifically included in the contract. See Foreign investment.

Differences between the land described in a contract and what is actually conveyed amounted to a breach of contract under the general law. A purchaser could terminate the contract and recover damages. In appropriate circumstances, equity softened the general law by being able to grant an order for specific performance while providing an adjustment in the purchase price. Clause 15 of the General Conditions, which can only be understood in light of the general law, provide a contractual regime for errors or misdescriptions, how claims can be made and the compensation that may flow from such errors or misdescriptions. See Misdescriptions.

Unlike in New South Wales, the Western Australian standard form contract does not make specific provision for work orders or notices, nor for illegal building works. See Work orders and notices.

During the course of a conveyancing transaction, a vendor may enter into external administration, either because a trustee in bankruptcy is appointed or because an external administrator is appointed to a corporate entity. The appointment of a trustee in bankruptcy or external administrator impacts upon a conveyance and the party with whom a purchaser is dealing with. See Insolvency.

The standard provisions are not silent on adjustments. They provide useful guidance on how the income and outgoings of a property are to be adjusted between vendor and purchaser and how the settlement cheques are to be drawn. See Adjustments.

Since 2000, one of the most important aspects of a conveyancing transaction is the treatment of GST. Practitioners need to be aware of GST concepts and what triggers GST. On the front page of the standard provisions a vendor is required to nominate the GST treatment of the property being sold. The options include whether it is:

• a taxable supply in full or in part;

• a GST-free supply because the supply is the supply of a going concern or the sale of farm land; or

• input taxed because the supply is of residential premises.

Depending on the transaction, special conditions will need to be drafted and in so doing care must be taken to ensure that there is no inconsistency with the standard provisions. See GST.

It is important that the contract clearly identifies if there is a tenancy because the common law presumption is that a property is sold with vacant possession. See Tenancies.

Section 7 of the Land and Business (Sale and Conveyancing) Act 1994 (SA) and the Land and Business (Sale and Conveyancing) Regulations 2010 (SA) impose obligations on vendors of land to serve detailed disclosure statements on purchasers. Those statements set out the mortgages, charges and "prescribed encumbrances" affecting the land and provide other information regarding matters affecting the use or enjoyment of the land. Failure to serve the appropriate statement is an offence under the Act and may entitle the purchaser to "cool off" or claim rescission or damages. See ss 14 and 15 of the Land and Business (Sale and Conveyancing) Act 1994 (SA). See also Purchaser's enquiries.

Despite the above disclosure obligations imposed on vendors, purchasers should also make their own enquiries to determine the correctness of the information provided by the vendor and any other factors that may be relevant. See Purchaser's enquiries.

In South Australia, there is no single "standard" contract for the sale of land, although there are several that are in common use. In view of the extensive vendor disclosure obligations imposed on vendors under the Land and Business (Sale and Conveyancing) Act 1994 (SA) , it is not the practice in South Australia for purchasers to make formal requisitions on title. See Requisitions.

In South Australia, stamp duty is imposed on the conveyance (the Memorandum of Transfer from the Land Services Group website) of land, not on the contract. Stamp duty is an important part of the conveyancing process. Without stamping, a transfer cannot be registered. It is standard practice in South Australia for the transfer to be stamped prior to settlement. A legal practitioner who fails to advise a client of the obligation to stamp is likely to be negligent. See Stamp duty.

An issue for purchasers to consider between execution of the contract and settlement is whether to lodge a caveat with the Registrar-General to protect its "beneficial interest" in the land until settlement. The question is more acute given recent comments in Black v Garnock . In light of that judgment, failure to advise a purchaser client regarding the benefits of lodging a caveat could be negligence by a practitioner. See Caveats.

Most standard contracts in South Australia provide that the Foreign Acquisitions and Takeovers Act 1975 (Cth) does not apply to the transaction at hand. If the Act does not apply, a special condition should be drafted to deal with the particular situation. See Foreign investment.

Differences between the land described in a contract and what is actually conveyed amounted to a breach of contract under the general law. A purchaser could terminate the contract and recover damages. In appropriate circumstances equity softened the general law by being able to grant an order for specific performance while providing an adjustment in the purchase price. The consequences of errors or misdescriptions, how claims can be made and the compensation that may flow from such errors or misdescriptions will depend on the terms of the particular contract. See Misdescriptions.

Most of the contracts in general use in South Australia have clauses dealing with notices or orders issued by any competent authority (for example a council) requiring work to be carried out in relation to the property. It is necessary for practitioners to refer to the terms of the particular contract in order to determine which party is responsible for compliance with a notice or order issued before the contract date, or after the contract date but before settlement.

Examples of such notices would include notices from a local authority (council) to carry-out certain work. If a land owner fails to comply with such a notice, a council may be entitled to do the work and recover the costs of doing so. See Work orders and notices.

During the course of a conveyancing transaction, a vendor may enter into external administration, either because a trustee in bankruptcy is appointed or because an external administrator is appointed to a corporate entity. The appointment of a trustee in bankruptcy or an external administrator impacts upon a conveyance and the party with whom a purchaser is dealing with. See Insolvency.

The standard contract provisions set out how the income and outgoings of a property are to be adjusted between vendor and purchaser and how the settlement cheques are to be drawn. See Adjustments.

Since 2000, one of the most important aspects of a conveyancing transaction is the treatment of GST. Practitioners need to be aware of GST concepts and what triggers GST. Most contracts used in South Australia for the sale of land contain clauses under which a vendor is required to nominate the GST treatment of the property being sold. The options may include whether it is:

• a taxable supply in full or in part;

• a GST-free supply because the supply is the supply of a going concern or the sale of farm land; or

• input taxed because the supply is of residential premises.

Depending on the transaction, special conditions may need to be drafted. See GST.

Under the general law of disclosure, there is no obligation upon a vendor to disclose defects in quality. It is up to the purchaser to make the enquiries, caveat emptor. After exchange, a purchaser should make enquiries to determine whether any of the contracted warranties have been breached and whether the vendor can make good title. See Purchase’s enquiries.

In Tasmania, it is standard practice for purchasers to serve requisitions on title on the vendor, after the contract is signed and before settlement. As there are limited vendor warranties contained in the standard contract for sale, the requisitions enable the purchaser to make enquiries in relation to matters affecting the title of the property and any other contractual obligations of the vendor. See Requisitions.

In Tasmania, the Duties Act 2001 (Tas) stipulates that any transfer of dutiable property will attract duty, unless an exemption or concession is applicable to the transaction. Duty charged in a transaction is payable by the transferee, unless the Act requires another person to pay the duty: s 11 . If duty is paid within three months after the liability to pay the duty arises then a tax default does not occur for the purposes of the Taxation Administration Act 1997 (Tas) . In Tasmania, the transfer of land is stamped for duty, not the contract. See Stamp duty.

In Tasmania, it is proper and standard practice for a purchaser to lodge a Priority Notice once the contract has become unconditional. The Priority Notice lists all the dealings that need to be registered in order to affect the transfer of the property from the vendor to the purchaser. The Priority Notice locks down priority for the nominated dealings for the claimed period, usually the maximum 60 days.

Accordingly, in Tasmania, purchasers only need to protect their interest in the land between exchange and completion by caveat in unusual circumstances, such as threatened adverse dealings where 60 days protection is not enough. See Caveats.

In Tasmania, according to the common law, risk passes from the vendor to the purchaser on exchange of contracts. Common law principles on the passing of risk have not been adjusted by the standard contract.

While the vendor is in a position of trustee for the purchaser during the contract period, the risk of any deterioration to the property during that period falls upon the purchaser. See Insurance.

In Tasmania, the standard Contract for sale of real estate does not deal with the application of the Foreign Acquisitions and Takeovers Act 1975 (Cth) . If so required, a special condition should be inserted to make the contract conditional on the buyer obtaining foreign investment approval. See Foreign investment.

Differences between the land described in a contract and what is actually conveyed may amount to a breach of contract under the general law. A purchaser may be entitled to terminate the contract and recover damages. In appropriate circumstances, equity softens the general law by being able to grant an order for specific performance while providing an adjustment in the purchase price.

The Tasmanian Particulars of the sale of real estate and the Standard Conditions of sale of real estate does not specifically provide for misdescriptions of property. In Tasmania, common law and equitable remedies still remain. Purchasers may have a right to claim damages. A misdescription or error does not necessarily give a purchaser a right to terminate the contract. See Misdescriptions.

Notices or orders issued before the contract date may constitute "charges payable to any authority", and, if so, must be satisfied by the vendor before the settlement date. If issued on or after the contract date, it must be satisfied by the purchaser.

If a notice is served between exchange and settlement, the common law took the view that because the beneficial ownership had shifted to the purchaser, risk had passed to the purchaser and it had responsibility for the notice. This position is reflected in the Standard Conditions. See Work orders and notices.

During the course of a conveyancing transaction, a vendor may enter into external administration, either because a trustee in bankruptcy is appointed or because an external administrator is appointed to a corporate entity. The appointment of a trustee in bankruptcy or external administrator impacts upon a conveyance and the party with whom a purchaser is dealing with. See Insolvency.

At settlement, there is an adjustment of the income and outgoings of the property. Income will include all rent, licence fees and other occupation fees. Adjustment income will not include capital profits. Outgoings include rates and land tax. Strata levies will also be adjusted. It is open to the parties, particularly in commercial transactions, to agree to adjust other sums, for example fitout contributions. See Adjustments.

Practitioners need to be aware of GST concepts and what triggers GST. The standard Particulars of Sale allows nomination whether the sale is a taxable supply and requires special conditions if the sale is a taxable supply. See GST.

In the Northern Territory, the Law Society approved contract for sale contains some limited vendor warranties. After exchange, a purchaser should make enquiries to determine whether the information provided in the contract is accurate. The doctrine of caveat emptor (let the buyer beware) applies and requires buyers to satisfy themselves regarding the property by undertaking the relevant searches and enquiries. See Purchaser enquiries.

It is no longer the practice in the Northern Territory for a purchaser to make requisitions. Instead, there are some limited warranties in the Law Society approved contract which cover issues previously the subject matter of requisitions. See Requisitions.

In the Northern Territory, stamp duty must be assessed and paid on the contract of sale within 60 days after its execution: s 9 of the Stamp Duty Act (NT).

Stamp duty is an important part of the conveyancing process. Without stamping, a transfer cannot be registered with the Registrar-General. A legal practitioner who fails to advise a client of the obligation to lodge documents at the Territory Revenue Office for stamp duty assessment is likely to be negligent. Additionally, failure to lodge the relevant documents (and pay any stamp duty) within the required time frame can result in the Territory Revenue Office imposing fines and penalties on the purchaser. Also, a dutiable instrument that is not duly stamped is not admissible in evidence in any court in support for defence of a civil claim. See Stamp duty.

An issue for purchasers to consider between exchange and completion is whether to lodge a caveat with the Registrar-General to protect their “beneficial interest” in the land until completion. Note however, that this is not a common practice in the Northern Territory, where real property transactions are usually subject to 30 days contracts. See Caveats.

In the Northern Territory, under the Law Society approved contract, the risk remains with the vendor until possession of the property is given to the purchaser: cl 5 of the Law Society approved contract. Other forms of contract may place the risk on the purchaser from the date of the contract. In practice, it is unusual for a vendor to reverse the risk. Irrespective of the above, it is still prudent for a purchaser to insure their interest in the land improvements rather than rely on the vendor maintaining its insurance cover. See Insurance.

In the Northern Territory, the Law Society approved contract does not address the application of the Foreign Acquisitions and Takeovers Act 1975 (Cth) , and this is usually the subject matter of a special condition if required. See Foreign investment.

In the Northern Territory, the Law Society approved contract provides that a purchaser may not terminate for any misdescription, but the purchaser can claim compensation for the error or misdescription if demanded within 10 working days of gaining possession. This is subject to the rule in Flight v Booth ; however, that would entitle a purchaser to avoid the contract if there was a substantial discrepancy. See Misdescriptions.

In the Northern Territory, the Law Society approved contract (cl 11.1) provides that the purchaser is responsible for any notice, order, demand or levy imposing liability on the property that is issued or made on or after the date of the contract that does not relate to periodic outgoings. The purchaser may enter the property to comply with that responsibility where action is required before settlement. See Work orders and notices.

During the course of a conveyancing transaction, a vendor may enter into external administration, either because a trustee in bankruptcy is appointed or because an external administrator is appointed to a corporate entity. The appointment of a trustee in bankruptcy or external administrator impacts upon a conveyance and the party with whom a purchaser is dealing with. See Insolvency.

The Law Society approved contract is not silent on adjustments. Clause 10 provides useful guidance on how the income and outgoings of a property are to be adjusted between vendor and purchaser and how the settlement cheques are to be drawn. See Adjustments.

In the Northern Territory, the Law Society approved contract does not contain a clause dealing with the treatment of the transaction for GST purposes. Accordingly, if the property being sold is used for commercial purposes, is a new residential property, or might otherwise be subject to GST on sale, the practitioner for the vendor would normally draft an appropriate GST clause. See GST.

Although under the general law and the Civil Law (Sale of Residential Property) ACT 2003 (ACT) there are significant disclosure requirements on sellers in that sellers need to disclose "prescribed documents", a buyer should, after exchange, make enquiries to determine whether any of the "prescribed warranties" have been breached. See Purchaser's enquiries.

Under the standard ACT Contract for Sale — 2013 Edition, a buyer is not entitled to make any requisitions on the title to the property. See Requisitions.

After the exchange of contracts, buyers generally have 90 days to stamp a contract. However, as a standard settlement time for residential properties in the ACT is 30 days from the date of exchange, the buyer's solicitor should lodge the exchanged contract and transfer for stamp duty assessment as soon as exchange has occurred. For an off the plan purchase the buyer generally has 12 months from the date of the contract to pay the stamp duty. Duty is an important part of the conveyancing process. Without stamping, a transfer cannot be registered. A party cannot sue on a contract unless it has been stamped. A mortgagee may decline to advance funds. Failure to stamp within the required time frame can result in the ACT Revenue Office imposing fines and penalties on the buyer. A legal practitioner who fails to advise a client of the obligation to stamp is likely to be found negligent. See Stamp duty.

An issue for buyers to consider between exchange and completion is whether to lodge a caveat with the Registrar-General to protect its “beneficial interest” in the land until completion. The question is more acute given recent comments in: Black v Garnock. In light of that judgment, a decision not to caveat could be negligence by a practitioner. See Caveats.

Buyers can protect their investment after exchange not only by lodging and registering a caveat but by insuring their interest in the land. It is prudent to do so, as the risk passes to the buyer under the common law at exchange of contracts. See Insurance.

Clause 23 provides a warranty that the Commonwealth Treasurer cannot prohibit and has not prohibited the transfer of the lease under the Foreign Acquisitions and Takeovers Act 1975 (Cth). Breach of the promise gives a right to terminate the contract. If the provision does not apply, a special condition should be drafted to deal with the particular situation. See Foreign investment.

Differences between the land described in a contract and what is actually conveyed amounted to a breach of contract under the general law. A buyer could terminate the contract and recover damages. In appropriate circumstances, equity softened the general law by being able to grant an order for specific performance while providing an adjustment in the purchase price. Clauses 16 and 17, which can only be understood in light of the general law, provide a contractual regime for errors or misdescriptions, how claims can be made and the compensation that may flow from such errors or misdescriptions. See Misdescriptions.

Clause 12.1.1 of ACT Law Society Contract for Sale deals with notices or orders issued by any competent authority requiring work to be carried out in relation to the property. If a notice or order is issued before the contract date, it must be complied with by the seller before the settlement date. See Work orders and notices.

During the course of a conveyancing transaction, a seller may enter into external administration, either because a trustee in bankruptcy is appointed or because an external administrator is appointed to a corporate entity. The appointment of a trustee in bankruptcy or external administrator impacts upon a conveyance and the party with whom a buyer is dealing with. See Insolvency.

The standard provisions are not silent on adjustments. Clause 8 provides useful guidance on how the income and outgoings of a property are to be adjusted between seller and buyer and how the settlement cheques are to be drawn. See Adjustments.

Since 2000, one of the most important aspects of a conveyancing transaction is the treatment of GST. Practitioners need to be aware of GST concepts and what triggers GST. On the second page of the schedule to the standard provisions a seller is required to nominate the GST treatment of the property being sold. The options include whether it is:

• a taxable supply;

• input taxed because the supply is of residential premises; or

• using the margin scheme.

Depending on the transaction, special conditions will need to be drafted and in so doing care must be taken to ensure that there is no inconsistency with the standard provisions. See GST.

The standard contract for sale in the ACT requires a seller to disclose the occupancy of the property being sold. The seller must disclose if the property is being sold with “vacant possession” or “subject to tenancy”. It is important that the occupancy is clearly identified. If it is not, there is a presumption that the property is being sold with vacant possession (see cl 9.1 of the ACT Contract for Sale — 2013 Edition).