Most buyers walk through a property focusing on finishes, like fresh paint, modern kitchens, and styling.

But experienced buyers know the real risks (and costs) are often hidden in plain sight.

If you’re purchasing property in NSW, understanding what to look for during a property inspection can help you avoid unexpected expenses and put you in a stronger position to negotiate before exchange.

Below are some of the most common (and costly) issues we see buyers overlook.

1. Hot Water System Age and Condition

Start with the hot water system. Check the compliance plate for the installation date.

Most systems last around 8–12 years. If it’s nearing the end of its lifespan, replacement may be required sooner rather than later.

Typical replacement cost: $1,500–$5,000+ (depending on system type and installation)

What to do:
If the system is older, factor this into your budget or raise it during negotiations.

2. Electrical Switchboard and Safety Switches

Take a look at the electrical switchboard. Older homes may still have ceramic fuses or lack safety switches (RCDs), which are now standard for safety compliance.

Typical upgrade cost: $900-$4,500

Complex upgrades: Up to $8,000+

Why it matters:
Outdated electrical systems can present safety risks and may need upgrading to meet current standards. Some insurers may also require this.

3. Ceiling Stains and Signs of Water Damage

Look up. Discoloured patches or stains on ceilings can indicate past or ongoing water ingress.

This could be due to roof leaks, blocked gutters, or plumbing issues.

Potential repair costs: Repair costs vary significantly depending on the cause and extent of the damage, ranging from minor repairs to major structural work.

What to do:
Ask when the issue occurred and whether it has been properly repaired. Supporting documentation is important.

4. Air Conditioning Systems

Check the age and condition of any air conditioning systems, whether split systems or ducted.

Most systems last around 10–15 years.

Replacement cost: Prices may significantly vary based on the system type and age.

What to do:
If the system is older, you may need to budget for replacement in the near future.

5. Windows and Seals

Older properties often have single-glazed windows or worn seals.

Signs to look for include drafts, noise penetration, or condensation between panes.

Cost considerations: Costs will depend on the number of windows, materials, and glazing type, with full replacements often representing a significant investment.

Why it matters:
Poor windows affect energy efficiency and comfort. Upgrades can be expensive.

6. Cracks in Walls or Brickwork

Not all cracks are equal.

• Hairline cracks are generally cosmetic
• Wider cracks, horizontal cracks, or stair-step patterns in brickwork may indicate structural movement

Potential repair costs: Structural repairs can vary widely depending on severity and should be assessed by a qualified professional.

What to do:
If you’re unsure, a building inspection is essential to assess the severity.

7. Plumbing and Sewer Lines

Older homes may have clay or galvanised pipes, which deteriorate over time.

Issues with sewer lines are not always visible during a standard inspection.

Potential costs: Costs vary depending on the location and extent of the issue, particularly in older properties with ageing infrastructure.

What to do:
Consider a sewer inspection for older properties to identify hidden issues early.

8. Water Pressure

As a simple test, turn on multiple taps or flush a toilet while running the shower.

Low water pressure can indicate underlying plumbing issues.

Replumbing cost: Rectification costs vary depending on the underlying cause, including potential pipe replacement in some cases.

9. Drainage and Site Grading

Walk around the exterior of the property.

The ground should slope away from the home. If water drains towards the property, it can lead to rising damp or internal water damage.

Drainage fixes: Drainage works can range from minor adjustments to more extensive excavation and waterproofing solutions.

Why These Checks Matter Before You Exchange Contracts

In NSW, once contracts are binding (either the cooling off period has expired or exchanged unconditionally), you are committed to the purchase the property in its present condition and state of repair.

That means issues identified after exchange can quickly become your responsibility.

Carrying out proper due diligence beforehand, including building and pest inspections, can help you:

• Identify potential risks
• Budget accurately for repairs
• Negotiate the purchase price or request rectification
• Avoid costly surprises after settlement

Practical Next Steps for Buyers

If you are considering purchasing a property, it is worth taking a structured approach:

• Arrange a building and pest inspection before exchange
• Ask questions and request supporting documents for any visible issues
• Consider additional inspections (such as plumbing or sewer checks) where relevant
• Have a solicitor or conveyancer review the contract before signing

Final Thoughts

The cosmetic features of a property are easy to see.

The issues that cost the most are often less obvious, but far more important.

Taking the time to identify these risks early can make a significant difference, both financially and in your overall peace of mind.

Need Assistance Reviewing a Contract?

If you are purchasing property in NSW, obtaining legal advice before you sign a contract can help you make informed decisions and avoid unnecessary risk.

Joseph Grassi + Associates assists clients with property purchases, contract reviews, and conveyancing across NSW. Call our firm on 02 4702 5905.

DISCLAIMER: The cost estimates referred to in this article are indicative only and provided for general informational purposes. Actual costs may vary significantly depending on the property, location, materials, and extent of any issue identified. You should obtain independent quotes and professional advice specific to your circumstances before relying on any estimates.

Notarial documents are an important part of many legal, commercial, and international transactions. Whether you are preparing documents for overseas use, appointing a Power of Attorney, or certifying important legal paperwork, a Notary Public can help ensure your documents are legally recognised and properly authenticated.

In Australia, notarised documents are commonly required for international business transactions, overseas property matters, immigration applications, and foreign legal proceedings. Understanding what notarial documents are and when you may need them can help you avoid delays, rejected paperwork, and unnecessary legal complications.

At Joseph Grassi + Associates, we assist individuals and businesses with a range of notarial services, including document witnessing, certification, authentication, and preparation for overseas use.

What Are Notarial Documents?

Notarial documents are documents that have been witnessed, certified, or authenticated by a Notary Public. A Notary Public is a qualified legal practitioner authorised to verify identities, witness signatures, certify copies of documents, and prepare documents for use internationally.

The purpose of notarisation is to confirm the authenticity of documents and reduce the risk of fraud or disputes. Many overseas governments, courts, banks, and institutions require documents to be notarised before they will accept them.

What Does a Notary Public Do?

A Notary Public performs several important functions, including:

• Verifying the identity of signatories
• Witnessing signatures on legal documents
• Certifying true copies of original documents
• Authenticating documents for overseas use
• Preparing documents for Apostille or legalisation
• Administering affidavits and statutory declarations

Notarial services are commonly required for documents being used outside Australia.

Common Types of Notarial Documents

Affidavits

An affidavit is a written statement sworn or affirmed to be true before a Notary Public. Affidavits are often used in:

• Court proceedings
• Family law matters
• Property disputes
• Immigration and visa applications

The Notary Public verifies the identity of the person making the affidavit and witnesses the signing of the document.

Power of Attorney Documents

A Power of Attorney allows one person to act on behalf of another in legal, financial, or personal matters.

Many overseas jurisdictions require a Power of Attorney to be notarised before it can be accepted. Notarisation helps confirm that the document has been signed voluntarily and correctly executed.

Real Estate and Property Documents

Property transactions often involve notarised documents, especially where overseas parties are involved.

Examples include:

• Property transfer documents
• Deeds
• Mortgage documents
• Leasing agreements

A Notary Public helps ensure the transaction documents are properly signed and legally enforceable.

Wills and Trust Documents

While wills and trusts are not always required to be notarised in Australia, notarisation may assist where documents are intended for international use or where additional authentication is required.

Business Contracts and Commercial Agreements

Businesses frequently require notarised documents for international trade and commercial transactions.

Examples include:

• Partnership agreements
• Company resolutions
• International contracts
• Corporate authorisations

A Notary Public can help verify the authenticity of signatures and company documents.

International Documents

One of the most common reasons clients require a Notary Public is for documents being sent overseas.

These may include:

• Birth certificates
• Marriage certificates
• University degrees and qualifications
• Passport copies
• Consent letters
• Corporate documents

Many countries require these documents to be notarised before they can receive an Apostille or consular legalisation.

What Is an Apostille?

An Apostille is an official certificate issued by the Australian Department of Foreign Affairs and Trade (DFAT) that verifies the authenticity of a notarised document for use in countries that are members of the Hague Apostille Convention.

If a country is not part of the Hague Convention, documents may instead require consular legalisation through the relevant embassy or consulate.

A Notary Public can often assist in preparing documents for the Apostille or legalisation process.

Why Are Notarial Documents Important?

Notarial documents help protect individuals and businesses by providing evidence that:

• The document is genuine
• The signatory was properly identified
• The document was signed voluntarily
• The parties understood the contents of the document

Notarisation can help reduce the risk of fraud, identity theft, and disputes over the validity of signatures or documents.

In legal proceedings and international transactions, notarised documents often carry significant evidentiary value because the Notary Public acts as an impartial and independent witness.

When Might You Need a Notary Public in Australia?

You may require a Notary Public if you are:

• Sending documents overseas
• Buying or selling overseas property
• Applying for international visas or citizenship
• Managing overseas business transactions
• Providing certified copies of documents internationally
• Preparing a Power of Attorney for overseas use
• Authenticating identity documents

Requirements vary depending on the country and type of document involved, so obtaining legal advice early can help streamline the process.

Why Choose Joseph Grassi + Associates for Notarial Services?

At Joseph Grassi + Associates, we provide professional and efficient notarial services for individuals and businesses across a wide range of matters.

We can assist with:

• Notarial document certification
• Witnessing signatures
• Affidavits and declarations
• Powers of Attorney
• Overseas document authentication
• Apostille and legalisation guidance

Our team understands the importance of accuracy and compliance when preparing documents for international use.

Contact Us

If you require assistance from a Notary Public or need help preparing documents for overseas use, contact Joseph Grassi + Associates on 02 4702 5905 to arrange an appointment.

On 12 May 2026, the Federal Treasurer delivered the most significant personal and business tax changes in decades. While much of the public debate has focused on housing, the reforms reach much further, affecting business owners, investors, and individuals who hold wealth through discretionary trusts.

This update explains where the law stands today and what it is changing to for each area of change. These measures have been announced, but are not yet legislated. To become official tax laws, the proposed changes must pass through Parliament and may be amended in that process.

1. Capital Gains Tax (CGT)

Capital Gains Tax is the tax you pay on the profit you make when you sell an asset. CGT is part of your income tax. It is most often mentioned in relation to real property (real estate), however, it applies to the sale of other assets also. These include shares, crypto assets, managed funds, sales of businesses, as well as the sale of business assets like property or goodwill. These changes are among the most significant in the announced Budget. The impact of these changes on these other asset types is discussed further below.

2. CGT changes apply to all asset classes, not just property

This is critical for our business and commercial clients. Despite the housing focus in media coverage, the new CGT rules are not limited to real estate. The changes also apply to shares and sales of businesses, including goodwill.

 3. Negative gearing on residential property

Negative gearing is when the costs of owning an investment (for example, the cost of any loan interest, maintenance, management fees, etc.) exceed the income the investment produces. Essentially, the investment costs more to maintain than the income it produces for the owner. Under current law, an owner can deduct that loss against their personal taxable income, such as their salary. This is changing for residential property.

4. Discretionary family trusts: A fundamental change

This is the most significant change for many of our clients who utilise discretionary trusts. Australia has over 900,000 discretionary trusts, and this reform fundamentally alters how trust income is taxed.

How trust distributions are taxed

Impact on corporate beneficiaries (“bucket companies”)

Which trusts are excluded from the new rules?

16. Fixed trusts
17. Complying superannuation funds
18. Charitable trusts and special disability trusts
19. Deceased estates
20. Testamentary trusts that were already in existence on 12 May 2026
21. Income from primary production and certain income relating to vulnerable minors

5. Franking Credits: A key difference between trusts vs. companies

Given the changes to trust taxation, it is worth explaining how the credit system for trusts now differs from the franking credit system that applies to companies and their shareholders.

6. Rollover relief: The window to restructure

Recognising the scale of disruption, the Government has announced rollover relief. This is a time-limited window to restructure out of a discretionary trust without triggering immediate tax consequences.

7. Estate planning: Wills and testamentary trusts

The trust changes also have implications for Wills and estate planning. If you have drafted a Will, you may have elected to establish a testamentary trust through your Will. This is a trust established after the will-maker’s death that can provide tax advantages and asset protection benefits to beneficiaries.

8. What you should do now

The transition windows provided in these reforms are a genuine opportunity, but only for those who act promptly. We recommend the following steps:

1. Review your trust structure. If you hold a discretionary trust, review whether it remains appropriate given the 30% minimum tax and the loss of income-splitting flexibility from July 2028.
2. Assess the timing of any asset sales. If you are considering selling a business, shares, or any significant asset, understand the difference in CGT treatment before versus after 1 July 2027.
3. Review pre-CGT assets. If you hold pre-CGT assets (acquired before September 1985), assess what gains may arise after 1 July 2027 and begin planning now.
4. Model the impact of corporate beneficiary changes. If your trust distributes to a company, model the impact of the proposed changes. The bucket company strategy is at serious risk of double taxation.
5. Update your estate planning documents. Review your Will and estate plan, particularly if it provides for a testamentary trust or if your circumstances have changed.
6. Plan for the restructure window. Take advantage of the rollover relief window to restructure trust arrangements, but begin planning well before the window opens in 2027.

Most buyers walk through a property focusing on finishes, like fresh paint, modern kitchens, and styling.

But experienced buyers know the real risks (and costs) are often hidden in plain sight.

If you’re purchasing property in NSW, understanding what to look for during an inspection can help you avoid unexpected expenses and put you in a stronger position to negotiate before exchange.

Below are some of the most common (and costly) issues we see buyers overlook.

1. Hot Water System Age and Condition

Start with the hot water system. Check the compliance plate for the installation date.

Most systems last around 8–12 years. If it’s nearing the end of its lifespan, replacement may be required sooner rather than later.

Typical replacement cost: $1,500–$5,000+ (depending on system type and installation)

What to do:
If the system is older, factor this into your budget or raise it during negotiations.

2. Electrical Switchboard and Safety Switches

Take a look at the electrical switchboard. Older homes may still have ceramic fuses or lack safety switches (RCDs), which are now standard for safety compliance.

Typical upgrade cost: $900-$4,500

Complex upgrades: Up to $8,000+

Why it matters:
Outdated electrical systems can present safety risks and may need upgrading to meet current standards. Some insurers may also require this.

3. Ceiling Stains and Signs of Water Damage

Look up. Discoloured patches or stains on ceilings can indicate past or ongoing water ingress.

This could be due to roof leaks, blocked gutters, or plumbing issues.

Potential repair costs: Repair costs vary significantly depending on the cause and extent of the damage, ranging from minor repairs to major structural work.

What to do:
Ask when the issue occurred and whether it has been properly repaired. Supporting documentation is important.

4. Air Conditioning Systems

Check the age and condition of any air conditioning systems, whether split systems or ducted.

Most systems last around 10–15 years.

Replacement cost: Prices may significantly vary based on the system type and age.

What to do:
If the system is older, you may need to budget for replacement in the near future.

5. Windows and Seals

Older properties often have single-glazed windows or worn seals.

Signs to look for include drafts, noise penetration, or condensation between panes.

Cost considerations: Costs will depend on the number of windows, materials, and glazing type, with full replacements often representing a significant investment.

Why it matters:
Poor windows affect energy efficiency and comfort. Upgrades can be expensive.

6. Cracks in Walls or Brickwork

Not all cracks are equal.

• Hairline cracks are generally cosmetic
• Wider cracks, horizontal cracks, or stair-step patterns in brickwork may indicate structural movement

Potential repair costs: Structural repairs can vary widely depending on severity and should be assessed by a qualified professional.

What to do:
If you’re unsure, a building inspection is essential to assess the severity.

7. Plumbing and Sewer Lines

Older homes may have clay or galvanised pipes, which deteriorate over time.

Issues with sewer lines are not always visible during a standard inspection.

Potential costs: Costs vary depending on the location and extent of the issue, particularly in older properties with ageing infrastructure.

What to do:
Consider a sewer inspection for older properties to identify hidden issues early.

8. Water Pressure

As a simple test, turn on multiple taps or flush a toilet while running the shower.

Low water pressure can indicate underlying plumbing issues.

Replumbing cost: Rectification costs vary depending on the underlying cause, including potential pipe replacement in some cases.

9. Drainage and Site Grading

Walk around the exterior of the property.

The ground should slope away from the home. If water drains towards the property, it can lead to rising damp or internal water damage.

Drainage fixes: Drainage works can range from minor adjustments to more extensive excavation and waterproofing solutions.

Why These Checks Matter Before You Exchange Contracts

In NSW, once contracts are binding (either the cooling off period has expired or exchanged unconditionally), you are committed to the purchase the property in its present condition and state of repair.

That means issues identified after exchange can quickly become your responsibility.

Carrying out proper due diligence beforehand, including building and pest inspections, can help you:

• Identify potential risks
• Budget accurately for repairs
• Negotiate the purchase price or request rectification
• Avoid costly surprises after settlement

Practical Next Steps for Buyers

If you are considering purchasing a property, it is worth taking a structured approach:

• Arrange a building and pest inspection before exchange
• Ask questions and request supporting documents for any visible issues
• Consider additional inspections (such as plumbing or sewer checks) where relevant
• Have a solicitor or conveyancer review the contract before signing

Final Thoughts

The cosmetic features of a property are easy to see.

The issues that cost the most are often less obvious, but far more important.

Taking the time to identify these risks early can make a significant difference, both financially and in your overall peace of mind.

Need Assistance Reviewing a Contract?

If you are purchasing property in NSW, obtaining legal advice before you sign a contract can help you make informed decisions and avoid unnecessary risk.

Joseph Grassi + Associates assists clients with property purchases, contract reviews, and conveyancing across NSW.

DISCLAIMER: The cost estimates referred to in this article are indicative only and provided for general informational purposes. Actual costs may vary significantly depending on the property, location, materials, and extent of any issue identified. You should obtain independent quotes and professional advice specific to your circumstances before relying on any estimates.

Imagine purchasing your dream home, settling, and moving – only to later discover the property was never really yours.

In 2023, the Queensland Supreme Court found that a couple had no legal interest in the Queensland home they had purchased five years earlier, because the title had never been transferred into their names.

The case concerned a mortgagee auction, and it was found that the mortgagees who sold the property did it unlawfully, as security for a fraudulent loan by a relative of the registered owner.

The owner of the property placed a Caveat over the property to stop the sale, after discovering the fraudulent pursuit.

After the registered owner of the property negotiated with the mortgagees, the Caveat was removed in exchange for $40,000 before settlement.

The couple were unaware of underlying fraud, thus they settled the contract and paid the purchase price, attempting to transfer the title into their names.

Consequently, they were not able to transfer the home into their names because the Register of Titles placed a second Caveat over the property.

This Caveat was exercised after the owner wrote to the Register of Titles office saying her home had been fraudulently mortgaged by criminals.

The mortgagees were not entitled to exercise the power of sale over the house making the sale void.

After a great deal of legal action and procured fees, the couple lost the house as the court found that they only had equitable interest not legal interest. The legal interest was absent because of the insufficient title transfer.

The court ruled that the house still belonged to the registered owner as the mortgage was procured by the fraud of another person and that the lenders were inadequate in their ability to verify whether the registered owner agreed to her house being put up as security.

The purchasers of the property were later awarded compensation under a section of the Land Titles Act in Queensland that protects people “deprived of an interest in a lot” in circumstances such as fraud.

Transfer of Title at Settlement

The transfer of the whole or part of a property can be a complicated and expensive process if it is not handled properly.

A transfer of title is the legal process by which ownership of a property is formally changed from one party to another. The core purpose of the conveyancing process is to ensure that legal title to land is properly transferred and registered.

Property title can be transferred in several ways, including:

• By sale (the most common method);
• By gift;
• By changing or restructuring ownership (for example, adding or removing a party).

Understanding the transfer process is essential to minimise risk and avoid potential legal disputes or claims arising from defective or incomplete registration.

However, complications can arise that prevent a transfer from being registered. One common example is the lodgement of a caveat over the property, which can restrict or prevent dealings with the title until the underlying issue is resolved.

Ensuring that all title issues are identified and addressed before settlement is critical to protecting your legal interest in the property.

Before settlement takes place, a title search should be conducted to ensure there are no caveats or other encumbrances registered on the property. If a caveat appears on title, settlement should not proceed until the issue has been properly investigated and resolved.

What is a Caveat?
A caveat is a form of statutory injunction provided for under the Real Property Act 1900, intending to warn the public that there is an interest claimed in the property, and it can therefore not be sold to another purchaser unless the caveat is lifted.

If you need assistance with transferring a property, contact our experienced team.

From 1 October 2026, businesses across Australia will no longer be permitted to apply surcharges on debit and credit card payments. This significant reform, introduced by the Reserve Bank of Australia (RBA), is aimed at simplifying payments for consumers and improving transparency in pricing.
For business owners, however, the changes raise important operational and legal considerations.
What is changing?
Currently, many businesses apply a surcharge to recover the cost of accepting card payments, such as for Visa, Mastercard, and eftpos transactions. From October 2026, this practice will be prohibited.
At the same time, the RBA will:
• Reduce the cap on interchange fees (paid by merchants to card-issuing banks) from 0.8% to 0.3% for consumer credit cards
• Introduce caps on foreign-issued cards for the first time
• Require payment providers to pass cost savings on to businesses
These reforms are expected to reduce overall payment costs for merchants, while removing the need for surcharges.
Why is the ban being introduced?
The RBA has taken the position that surcharging is no longer functioning as intended.
While originally designed to encourage consumers to choose lower-cost payment methods, surcharges have become:
• Inconsistent across businesses
• Difficult for consumers to predict
• A source of frustration at the point of sale
Instead, the RBA expects businesses to incorporate payment costs into their overall pricing, resulting in clearer, “all-inclusive” pricing for consumers.
What does this mean for businesses?
Although the removal of surcharges may appear straightforward, it is not simply an automatic process. Businesses will likely need to take active steps to ensure compliance.
Key considerations include:
1. Updating pricing structures
Businesses that currently rely on surcharges will need to review their pricing models. Payment processing costs may need to be absorbed or built into the advertised price of goods and services.
2. Reviewing payment provider agreements
The RBA has indicated that payment service providers must pass on wholesale cost savings. However, the extent of these savings and how they are applied, may vary.
It is prudent for businesses to:
• Review merchant service agreements
• Compare providers if necessary
• Ensure fees reflect the new regulatory caps
3. Adjusting point-of-sale systems
Surcharge settings in EFTPOS terminals and online checkout systems will need to be disabled or removed before the October deadline.
This may require coordination with:
• Banks
• Payment processors
• POS software providers
4. Ensuring compliance with consumer law
Even prior to this reform, excessive surcharging could breach the Australian Consumer Law. From October 2026, any surcharge on standard card payments is likely to expose businesses to regulatory risk.
Clear, upfront pricing will be critical.
Will all surcharges disappear?
Based on current announcements, the ban will apply to common consumer card payments (including debit and credit cards on major networks). However, further detail may still be released, particularly regarding:
• Commercial or corporate card transactions
• Alternative payment methods (e.g. digital wallets or international cards)
Businesses should monitor updates as the implementation date approaches.
Practical next steps
With several months before the changes take effect, businesses should begin preparing now:
• Conduct a cost analysis of current payment fees
• Speak with your payment provider about upcoming changes
• Review your pricing strategy and margins
• Plan system updates well ahead of October
• Seek legal or commercial advice if your business model relies heavily on surcharging
Final thoughts
While the removal of card surcharges is intended to benefit consumers, it represents a structural shift for many businesses, particularly those operating on tight margins.
Early preparation will be key to ensuring a smooth transition and avoiding compliance risks.
If you would like advice on how these changes may affect your business operations, contracts, or pricing structures, our team at Joseph Grassi + Associates is here to assist.

Australia’s property market is undergoing a significant regulatory shift. From 1 July 2026, new anti-money laundering (AML) laws will expand into the property sector. This will directly impact buyers, sellers, and the professionals who assist them. For anyone involved in property transactions, understanding these changes is crucial.

Why are these changes being introduced?

Australia’s real estate market has long been identified as vulnerable to financial crime, particularly money laundering.

Still, the property market continues to attract organised criminal activity. Since 2020, authorities have restrained approximately $1.2 billion in criminal assets, with a significant proportion linked to real estate (source: Australian Federal Police). This highlights the need for stronger regulation and greater transparency across property transactions.

With this in mind, the Federal Government is introducing what are known as “Tranche 2” AML reforms, bringing Australia in line with other jurisdictions such as New Zealand.

Who will be affected?

The reforms will apply to a wide range of professionals involved in property transactions, including:

• Real estate agents
• Conveyancers
• Lawyers
• Buyer’s agents
• Accountants

This means that if you are buying or selling property, you will likely notice changes in how these professionals interact with you.

What will buyers and sellers need to do?

Under the new requirements, clients will need to provide more detailed identification and background information during a transaction.

This may include:

• Full name, address, and date of birth
• Government-issued identification (e.g. passport or driver’s licence)
• Information about the source of funds
• Details of ownership structures (e.g. companies or trusts)

While this may feel like an extra step, it is similar to identification checks already required by banks and financial institutions.

Ongoing monitoring during the transaction

One key change is that checks won’t just happen at the start.

Professionals involved in your transaction must:

• Monitor the transaction from contract exchange through to settlement
• Identify inconsistencies or unusual changes
• Ask further questions where required

For example, switching from a mortgage to a cash purchase during the process could trigger additional scrutiny.

What are considered “Red Flags”?

Certain situations may require further investigation or reporting to regulators. These can include:

• Unusual funding arrangements (especially large cash components)
• Buyers whose financial position does not align with the purchase price
• Complex ownership structures that are difficult to trace
• Inconsistencies in identification documents

Importantly, these checks are not about stopping transactions. Rather, they are about ensuring transparency and compliance.

Will this delay your property transaction?

For most buyers and sellers, the impact will be minimal.

Straightforward transactions — such as purchasing a family home in your personal name — are unlikely to experience delays.

However, more complex matters involving trusts, companies, or multiple directors or beneficiaries, may require additional verification steps.

What will this mean for buyers and sellers?

These reforms signal a shift toward greater accountability in the property market.

While the process may involve more documentation, it ultimately aims to:

• Protect the integrity of the property market
• Reduce financial crime
• Ensure legitimate buyers and sellers are not disadvantaged

How we can help you

Navigating property transactions is becoming increasingly complex, particularly with evolving regulatory requirements.

At Joseph Grassi + Associates, our Property + Conveyancing team ensures that your transaction:

• Meets all legal and compliance requirements
• Proceeds smoothly from contract to settlement
• Minimises delays and risk

Whether you are buying, selling, or investing, we can guide you through every step with confidence.

This article is for general information only and is not intended as legal advice. If you need specific help, please contact our office.

Should Commercial and Retail leases be registered

Why leases should be registered

In short, registering a lease creates a legal interest in the land for a tenant, meaning the tenant’s interest under the lease will be afforded protection from dealings affecting the title to the land. For instance, if the landlord sells/transfers the land that has a registered lease on title, the purchaser/transferee of the land would be on notice of and be bound by the lease terms.

The law

Section 53 of the Real Property Act 1900 (NSW) (“the RP Act”) provides that when land under the RP Act is leased for a term exceeding three (3) years (including the initial term and any option terms), the lease must be in the ‘approved form’.

Further, s 42(1)(d) of RP Act provides that a dealing in land (including a lease exceeding three years) must be registered on title in order for the dealing to have priority against future registered dealings, such as the registration of a Transfer on the sale of the property.

Neither ss 53 nor 42 of the RPA mandate the registration of a lease. Section 42 merely provides that unregistered leases with a term exceeding three years do not pass with land.

Leases with a term not exceeding three years (i.e., up to and including three years—including any option(s) to renew) have statutory protection need not be registered.

By contrast, s 16 of the Retail Leases Act 1994 (NSW) (“the RLA”) provides that any lease that comes under the RLA and which has a term exceeding three (3) years (including any option(s) to renew) must be registered. Failure to comply with the RLA can incur penalties.

Consequence of non-registration

If a lease is not registered, any competing registered interest over the title will take preference.

Practically, the biggest concern for a tenant will most often be that if the landlord sells the land and the lease is for a term exceeding three (3) years and not registered on title, the purchaser of the land would not be bound by the unregistered lease and the tenant could be forced to vacate.  However, the unregistered lease could be protected by the registration of a Caveat, which will put a purchaser on notice of the lease

While lease registration costs are typically payable by a tenant, the cost is minimal compared to the potential legal costs and practical issues that can arise if the lease is not registered or protected by a Caveat.

How leases are registered

Since 11 October 2021, NSW has abolished physical Certificates of Title and moved to 100% mandatory electronic conveyancing. NSW Land Registry Services no longer accepts or issues Certificates of Title.

As a result, lease dealings (including lease, sublease, variation of leases, surrender of lease, and transfer of lease) must be registered via an Electronic Lodgement Network Operator (ELNO). At the moment, the most commonly used ELNO is Property Exchange Australia (PEXA).

Only certain entities can subscribe to PEXA, meaning that individuals will usually need to engage a Licensed Conveyancer or an Australian Legal Practitioner to act on their behalf for the purposes of registration.

While certain leases are afforded statutory protection and do not require registration, any lease, whether commercial or retail, that has a term exceeding three (3) years (including any option term(s)) should be registered on title to the landlord’s property to create a legal interest in the land for the tenant.

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Contact us if you require any further information or assistance.

Defining ‘Casual Employment’

As of 26 August 2024, a new definition of casual employment under section 15A of the Fair Work Act 2009 (Cth) applies to employees who began working on or after this date. This change, part of the Closing Loopholes reforms, redefines what it means to be engaged as a casual employee.

For employees engaged as casuals before 26 August 2024, their status continues under the new rules unless they transition to permanent employment. However, for any periods of casual employment before this date, the previous definition still applies.

Previous casual employee definition

Before 26 August 2024, a person was considered a casual employee if:

1. They were offered a job without a firm advance commitment that the work would continue indefinitely, or with a fixed pattern; and
2. They accepted the offer, understanding that no firm advance commitment existed at the time.

An example of casual status might be an employee with a changing roster based on the employer’s needs, with the flexibility to refuse or swap shifts.

What is a ‘firm advance commitment’ criteria

The prior casual employee definition was based on four factors determining if there was no firm advance commitment:

1. The employer could offer work, and the employee could choose whether to accept it;

1. The employee was only offered work as the business required;
2. The employment was described as casual;
3. The employee received casual loading or a specific casual pay rate;

New casual employee definition

Now, a person is a casual employee if:

1. there is no firm advance commitment to continuing and indefinite work; and

1.  the employee is entitled to receive a “casual loading”.

Therefore, if you are trying to determine the validity of a casual employment arrangement, consideration of the real substance, practical reality and true nature of the relationship must be considered. The written terms in the employment contract will NOT be sufficient. Factors for consideration of the ‘true nature’ of the relationship include:

• whether the employer can offer or withhold work, and if the employee can, in practice, accept or reject work;
• the likelihood of future work being available within the business, based on the nature of the business;
• whether full-time or part-time employees are performing the same kind of work; and
• whether the employee has a regular pattern of work.

What does this mean?

The terms of the employment contract must be considered but also the totality of the employment relationship. There must be an examination of the intention of the parties when they first enter the employment relationship, but also after the fact, and so, consideration of whether the intention and reality of the parties has changed during the course of the employment relationship can be given.

What should employers do?

Employers should take reasonable steps to ensure that their employment contracts not only correctly reflect the intended casual employment relationship, but also ensure that casual employees are treated as true casual employees (under the new definition), if it is intended for these employees to remain casual.

For more information on casual workplace arrangements, please contact our office.

The scope of the unfair contract terms (‘UCT’) regime has recently expanded. Businesses, including small business, are now potentially exposed to substantial penalties for any failure to comply with these regulations. These amendments take effect from 9 November 2023, under the Australian Consumer Law (‘ACL’) and the Australian Securities and Investments Commission Act 2001 (Cth).

The amendments prohibit businesses from proposing, using, or relying on UCT in standard form contracts with consumers and small businesses.

Breaches of the UCT provisions of the Australian Consumer Law can now face new and substantial consequences, including:

• Harsher penalties for the use of UCT; and
• Increased maximum penalties for breaches of ACL provisions.

The maximum penalties for breaching the ACL have increased to $50 million, or three times the value derived from the relevant breach. In addition, these amendments expand the protections given to consumers and small businesses that are a party to a small business contract. The definition of a small business has now increased from 20 people or less, to 100 people or less, as well as any business with an annual turnover of under $10 million.

The ACCC’s prosecution against several businesses under the existing unfair contract laws regime provides useful guidance to businesses regarding the kinds of terms that may be ‘unfair’.

What constitutes an unfair term:

• Significant imbalance on the parties’ rights and obligations;
• Not reasonably necessary to protect the legitimate interests of the party, whom the term would advantage; and
• Causes financial loss or detriment when applied or relied upon.

The Federal Court decision in ACCC v Fujifilm Business Innovation Australia Pty Ltd & Anor illustrates the key parts of a UCT. These include but are not limited to, automatic renewal terms, disproportionate termination terms, liability limitation terms, termination payment terms, unfair payment terms and unilateral variation terms.

A business may be susceptible to multiple breaches when different contract terms are identified as unfair, as each individual unfair term within a contract is treated as an independent breach. A business may find itself in contravention if the other party repeatedly applies or relies on the same unfair contract term in multiple instances.

These changes have been implemented to strengthen consumer protections and motivate businesses to take greater measures in ensuring their standard form contracts are constructed fairly. Greater contractual review and amendment can ensure compliance with the UCT requirements.

Consider the following tips when reviewing your business contract:

• Examine a term from both parties perspectives;
• Include counter-balancing terms;
• Avoid broad terms;
• Ensure terms meet your obligations under the ACL;
• Use clear language; and
• Be transparent.

Key Takeways

• If your business has 100 or less people, you are considered a small business and exempt from the UCT provisions.
• If you have 100 or more employees, it is important to consider:
  • Your standard form contracts are reviewed, including specifically for conformity with the UCT provisions;
  • the heavy fines imposed for a breach of the UCT provisions;
  • each breach is treated separately and therefore care needs to be taken.

For additional advice and support, contact our experienced team of business experts on 02 4702 5905 or via the Contact Us page of our website.