KNOWLEDGE CENTRE

Show Me the Money! (And the Release of Mortgage) | Enterprise Legal

When selling your property there are several people involved in the process but three of those key players are your conveyancer, yourself, and your mortgagee / bank if applicable. 

We all have a different role, but we all are working towards and want the same outcome. There is a common misconception that your Conveyancer will take the reins and do everything to complete Settlement on your behalf. Whilst it is our job to guide and assist you, there are certain limitations of what we can do on your behalf. 

 

Sale of Property When There is a Mortgage 

You have secured a contract of sale for your property and engaged a conveyancer, happy days.  

Who else needs to know? Your Mortgagee / Bank / Lender.

Who needs to tell them? You. 

A Mortgage is a financial agreement (Loan) between yourself and your Lender. If your property has a Loan associated with it, you cannot sell it unless the Loan has been paid out and the Mortgage is released at settlement. This involves you completing the necessary paperwork with your Lender to request for the Loan to be released. Part of that process includes you listing us as the Conveyancer acting on your behalf for the transaction, and thus authorising us to speak to you Lender about it. 

Your Lender will not get in touch with us or speak to us about your matter until they have received the completed Release of Mortgage request from you, and you have nominated us as your Conveyancer.  

The lead time for your Lender to be ready to release the Loan is hard to predict as there are many contributing factors. An example being that your Lender may be waiting on valuations to be conducted of other securities you own which could add substantial delays to the normal processing time required to Release the Mortgage. Therefore, we encourage our clients to attend to the process of arranging the Release of Mortgage as soon as possible. Whilst we cannot complete this request for you, we make sure we advise you of this requirement in our First Letter Pack we send out soon after receiving the signed contract. We are also always ready to answer any questions you may have, regarding the Release of Mortgage

 

Sale of a Property When the Loan has Been Paid but the Mortgage has not been Released 

You have finally paid off your loan and your debt with the bank is over – Congratulations! 

Why are we still asking you to arrange for the Mortgage to be Released? Because the Release of Mortgage has not actually been registered with Land Titles and the Mortgage is still on the Title. 

When you purchase a property and borrow money to do so, your Lender will register a Mortgage over the Title after Settlement to confirm the Loan agreement. 

Once you have paid off the loan amount, the Loan can be released from the Title, but to do so a Release of Mortgage needs to be obtained from your Lender and registered at Land Titles. Your Mortgagee may arrange to do this for you, or you may be provided with the Release of Mortgage for you to arrange for it to be registered.
It may be that when it comes time to sell the property, you have not yet arranged for the Release of Mortgage to be registered. 

If this is the case, the Release of Mortgage needs to be registered at the Land Titles before Settlement. Alternatively, you can provide the physical Release of Mortgage to us, and we can provide at settlement to the Buyer’s Solicitor. 

 

In Conclusion 

There is a lot involved when you are selling your property but at Enterprise Legal, our main aim is to try and make the process as stress-free as possible. 

We have experience in what is involved in the process of selling your property, and what can go wrong so we know what to avoid.  

Our goal in advising our clients of the importance of this process is to avoid any last-minute delays that may attribute stress, costs or ultimately, being in breach of your sale contract due to your releasing Mortgagee not being ready on Settlement Date.

 

If you have any questions regarding your upcoming sale or any of the information in this article, please get in contact with EL's conveyancing team:

☎️ | (07) 4646 2621
✉️ | 
🌐 | Property Conveyancing Services


Should My Business Have a Services Agreement? | Enterprise Legal

If your business provides services, then the answer is YES!

 

A Services Agreement is an essential document for every service-based business! If you’re just starting out, you should put a Services Agreement at the top of your ‘legal document priority list’ (which is definitely a list everyone has). For existing business owners, whether you’ve been going ok without one or rolling out some stock-standard agreement you found from a Google search, you should put it back on your legal document priority list, as it only becomes more important as your business grows.

 

A tailored, well-drafted Services Agreement both protects your business (for example, in the event that a customer or client makes a claim for defective services) and clearly deals with important business policies such as cancellations, payment timing and methods, insurance etc.

 

A Services Agreement should also be customised for your specific business and the services you provide, because one size does not fit all when it comes to these kinds of agreements. From matters such as specific legislation that might apply to the industry (eg. NDIS, medical services, specific privacy law requirements), how much notice must be given for a cancellation, to the basic style and tone of the document, different businesses will have different requirements, so it is important that your Services Agreement reflects what your business needs. This is where you can get unstuck if you ‘take inspiration from’ (eg. copy) another business’ Services Agreement (you might be copying something that isn’t actually very good) or buy a generic online document! For example, if you provide support services for NDIS participants, then grabbing a Services Agreement from the website of your local gym is probably not going to be suitable for your business.

 

Whether you’re starting a new business or have been operating for a while and either don’t have a Services Agreement or you would like a second opinion on your current Services Agreement, the expert Business Law Team at Enterprise Legal can help. At Enterprise Legal, we take the time to learn about your business before preparing your Services Agreement.

 

Contact the Business Law Team today or book in for your Free Business Health Check:

☎️ | (07) 4646 2621
✉️ | Submit an Online Request


A Letter Of Demand Can Help You Recover Your Debts | Enterprise Legal

A Letter Of Demand Can Help You Recover Your Debts

 

Minor Debts Are Not Minor Problems

Minor debts can be the cause of many sleepless nights for small to medium business owners. The problem is that while an amount owed to you might cause inconvenience to you should you not recover it, it might not be so large a sum that you want to incur further costs engaging a lawyer or a debt recovery agency to collect your money, especially when that might cost more than the actual debt!

In some aspects, it is simply easier to write the debt off. However, those minor debts can add up and if you are consistently writing off $5,000.00 to $10,000.00 every other month, this will cause significant detriment to the viability of your cash flow and business.

 

Good Reasons to Send a Demand Letter

Having a formal Letter of Demand issued by a law firm sends a clear message that you are serious about recovering the debt and will not be so easily dismissed. The purpose of the Letter of Demand is also two-fold - first, it puts the debtor on notice of your intention to commence legal proceedings unless payment is made within a stipulated time frame. Secondly, the Letter can be used as evidence in subsequent court proceedings as written proof of your attempt to settle the matter early.

The Letter will also clearly set out the parameters of the dispute and may even account for any offset due. The Letter should attach a copy of any agreement, invoices or relevant text messages to assist any reader to identify the transaction and the liability to pay. This often assists in reducing the scale of the dispute to something more easily managed and addressed.

It is also our experience that you as a client feel emotionally better about the situation, after having decided to send a Letter of Demand. Having a trusted and knowledgeable advisor to discuss the problem with puts the problem into perspective. Often just having a plan and set steps to follow removes the stressful burden of figuring out what to do next by yourself. 

 

What are the Possible Outcomes from Sending a Letter of Demand?

The best result is receiving prompt payment from the debtor, with a side benefit of tightening up your trading terms and conditions to reduce the risk of debts arising again.

Another outcome is the creation of ‘industry reputation’. It may be to your benefit for your general customers to know that you are serious about being paid for your services and that you are willing to engage legal assistance when required. This perception is worth every metaphorical penny, as it can weed out the time wasters and non-payers from the very beginning.

Frequently though, no response nor payment is received. This at least crystallises your available options and we can let you know the costs associated with each subsequent step. The true power of a demand letter is being prepared to act on the foreshadowed step of commencing proceedings, otherwise the debtor may simply be calling your bluff.

Our highly experienced Disputes team at Enterprise Legal provides a full debt recovery service and can assist you from reviewing your contracts and debts, to sending Letters of Demand (at fixed fee rates) all the way through to commencing proceedings and obtaining Judgments, a winding-up Order or sequestration (bankruptcy) orders against a Debtor.

 

If you need assistance, Enterprise Legal will work collaboratively with you and financial advisors to assist to limit the damage whilst also ensuring your legal rights and interests are protected.

Contact EL’s Principal Legal Advisor – Disputes, Kirsten Woolston to discuss your options today: 

☎️ | (07) 4646 2621
✉️ | Submit an Online Request


Refinancing and Purchasing a Property at the Same Time? | Enterprise Legal

Often to get the best deal (or even to get the deal done at all) on a new property purchase, you will need to refinance your existing loans to a new bank. Seems simple yes? Well, when you refinance at the same time as purchasing a property, it adds a whole extra layer to your transaction and as such, there are some important things you need to keep in mind during the process.

You Need to Drive Your Refinance Process

As we (your lawyers) are acting for you in relation to your purchase transaction and not the refinance transaction, this means we have limited ability to drive the matter, as your old financier will not discuss the matter with us as we are not a party to the transaction. It is important that you and your Broker (if you have engaged one) ‘drives’ this matter by completing the relevant forms needed as soon as required and checking in to ensure both banks will be ready by the Settlement Date under you property contract.

Why is it Important to Drive Your Refinance Process?

Most of the time, you will be refinancing when purchasing a property which means that it will happen simultaneously (eg. at the same time) with the settlement of your property purchase on Settlement day. This means if your refinance is not ready due to either your old or new financier not being ready, then your purchase transaction will not be able to proceed, placing you in breach of your contract. 

Keep Us Updated!

It is important to tell us from the start whether you are refinancing or not. As we don’t have the privilege to see how the refinance transaction is tracking, it is also important to keep us updated on how it is progressing. This also means letting us know what the outgoing (old) bank’s ‘payout figure’ is (eg. how much money you have to give them to leave), so we can ensure that your new loan covers not only the refinance with your outgoing bank but also your purchase transaction as well. 

 

Between ourselves, you and your Broker, it is a collaborative effort to ensure your refinancing transaction and property transaction runs smoothly with no hiccups.

Ensure a smooth transaction and get Enterprise Legal's expert conveyancing team in your corner when you buy your next property by getting in touch with us today: 

☎️ | (07) 4646 2621
✉️ | 
🌐 | Property Conveyancing Services