Competency Test - COMBINED - for staff TESTING

A3 – Competency Test – COMBINED – for staff TESTING

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Bytherules Conveyancing
COMPETENCY QUESTIONS
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When does the property become at the risk of the Buyer? Is it the same for an ADL Contract?
Referring to snip below, please answer the following questions:
Is the contract subject to finance?
At what stage can the buyer terminate under the finance clause?

Finance Amount:	$ Sufficient to Complete	Unless all of “Finance Amount”, “Financier” and “Finance Date” are completed,this contract is not subject to finance and clause 3 does not apply.
Financier:	Buyers Choice
Finance Date:

Does a Buyer have to pay the balance deposit amount noted in the contract when no date is inserted?
Can a very experienced Real Estate Agent prepare Special Conditions for a Contract?
What standard searches are considered “minimum” to be carried out when acting for a Buyer buying a house?
Do you have to note a benefitting “Easement” on a Contract as a Title Encumbrance?
If the tenancy details on a contract are completed and the tenancy expires prior to the settlement date, when will the buyer be entitled to possession?
You have received your Property search that shows a notice being provided to the Seller prior to the contract date for works to be carried out. Does the buyer have to do these works?
If a mistake in calculations or adjustments is made at settlement – does the buyer have any recourse for recovery against the Seller?
If a buyer terminates a contract under the cooling off period and there is no or enough deposit to cover the penalty, what remedy does the Seller have to claim the penalty?
When is stamp duty payable under a Contract?
If a buyer wants to terminate a contract under the building/pest inspection condition – do they have to provide a copy of the reports to the Seller under the Contract?
What does the phrase “time is of the essence” mean?
If a Buyer purchases a property at Auction and is not subject to any conditions, can the Buyer make a claim against the Seller for any outstanding notices or encroachments?
A Contract dated 23 March 2017 and received by the Buyer on 24 March 2017, the building & pest condition is due 7 days from contract date – what date is Building/Pest due and when does the cooling off period expire?
Is it a legal requirement for a Buyer to pay any deposit under a Contract?
A Buyer is purchasing a property in a trust name – can they still get a concession on Stamp Duty?
How do you update Body Corporate records following a settlement?
When can Default Interest be charged under a contract?

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Please complete answers to questions in this scenario:
SCENARIO 1: Joe is transferring a half share in residential property he owns to his son and son’s partner for the sum of $200,000.00. They all live in the property together. His son and partner have never owned property before. The son & partner will be obtaining a loan to purchase and Joe has a mortgage on the property.
A. What are the issues with Stamp Duty (if any) and how would it be calculated?
B. What documents will you need to complete this transfer?
C. What steps do you need to follow in this situation?
SCENARIO 2 : You are acting for Chris who is selling his property in Noosa for $2,600,000.00. Chris has a mortgage on the property. What forms will you need to have Chris sign/obtain under this Contract.
SCENARIO 3 : The firm is also acting for Elizabeth and her husband Frank who are purchasing Chris’ property in Noosa for $2,600,000.00. There is no pool safety certificate in place for the property and a notice has been given with the Contract to Elizabeth & Frank of this certificate not being in place. The contract is subject to a building/pest inspection 7 days from contract date and settlement due 30 days from contract date. What advice would you give and what procedure would you follow?
SCENARIO 4 : Kylie has signed a REIQ Residential Contract to purchase a home. Contract is subject to building/pest inspection. Kylie’s friend Sam who is studying law does the inspection and discovers termites. Sam advises Kylie not to proceed with the contract. What rights does Seller have if Kylie terminates the contract?
SCENARIO 5 : Kate is purchasing a Unit that is not yet constructed. What key areas would you point out to Kate to guide her?
SCENARIO 6 : Your client, Buyer, has done a final inspection of the property and the place is a mess! There is rubbish and personal effects still at the property, lawn is not mowed and oven not cleaned. What remedy does the Buyer have? Can they delay settlement?
SCENARIO 7 : Your client, Buyer, has collected the keys from the Agent following settlement – the owner states that there are locks to which the seller has never had the keys – what remedy can the Buyer take?
SCENARIO 8 : Your client, Buyer, is purchasing a Leasehold property. Who makes the Application to the Minister for Consent of the Transfer?
SCENARIO 9 : The Buyer is “Self Acting” and provides you with Transfers for signing. The Buyer needs the transfer back to stamp prior to settlement – can you do this given it is for settlement?
SCENARIO 10 : Your client, Buyer, needs to pay the balance deposit by way of Deposit Bond/Guarantee? In what circumstances is this OK?

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Please prepare Settlement Statements from the following information:

Click here to download the Blank Settlement Statement Template

Statement 1 – Residential (House)

Contract Price:	$550,000.00
Deposit:	$55,000.00
Settlement Date:	2 March 2020 (leap year)
Rates:	$1,200.00 paid for quarter ending 31 March 2020
Water & sewerage access charges:	$160.00 paid for quarter ending 31 March 2020
Water usage billed & paid to:	25 February 2020
Average Daily Water usage:	370 litres
Cost of Water:	State Govt Bulk Water Charge $2.00 / kl
	Tier 1 Usage $0.50 / kl

Statement 2 – Unit CTS

Date calculation references:
Period: 1 July 2020 to 18 August 2020	49 days
Period: 1 July 2020 to 30 September 2020	92 days
Period: 1 July 2020 to 31 December 2020	184 days
Period: 19 August 2020 to 30 September 2020	43 days
Period: 19 August 2020 to 31 December 2020	135 days

Contract Price:	$960,000.00
Deposit:	$96,000.00
Settlement Date:	18 August 2020
Rates:	$1,200.00 unpaid for quarter ending 30 September 2020
Water & sewerage access charges:	$250.00 paid for quarter ending 30 September 2020
Water usage billed & paid to:	15 August 2020
Community Title Total Average Daily Water usage:	1.2 kl
Scheduled Lot Entitlement:	50/160
Cost of Water:	$2.50 / kl
Administrative Fund –
Total Annual Contributions:	$2,000.00
	01/01/20-30/06/20 due 01/01/20 $1,000.00 PAID
	01/07/20-31/12/20 due 01/07/20 $1,000.00 UNPAID
Sinking Fund –
Total Annual Contributions:	$500.00
	01/01/20-30/06/20 due 01/01/20 $250.00 PAID
	01/07/20-31/12/20 due 01/07/20 $250.00 UNPAID
Insurance Levy –
Total Annual Contributions:	$200.00
	01/01/20-30/06/20 due 01/01/20 $100.00 PAID
	01/07/20-31/12/20 due 01/07/20 $100.00 UNPAID
Tenancy Details: Term	13 May 2020 to 11 November 2020
	$600 per week
	Tenant paid to & including 23 August 2020
	Property Manager disbursed rent to Vendor on 15 August 2020
Foreign resident capital gains withholding (FRCGW)	1 vendor – No Clearance Certificate yet received
Land Tax:	Unimproved Value $750,000.00
	Land tax liability up to and including 30 June 2020
	Individual Land Tax payable: $2,000.00
	No contract special condition providing for apportionment

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A3 – Competency Test – COMBINED – for staff TESTING

Step 1 of 6

Bytherules Conveyancing

COMPETENCY QUESTIONS

Please complete answers to questions in this scenario:

Please complete answers to questions in this scenario:

Please prepare Settlement Statements from the following information:

Click here to download the Blank Settlement Statement Template