Do-it-yourself car brake service could be less risky than a homemade will!

When I was still studying, when I had more free time and less life responsibilities, or said another way... “back in the day....” I had no aspirations to becoming a mechanic or a passionate car tinkerer.  I did enjoy repairing and mechanically maintaining my cars though.  I had the books, the manuals and many of the tools. 

 

Sure, saving money was a big motivating factor for a student, but so was the sense of achievement from doing it yourself.

 

Engine tuning, changing the oil and various filters, repairing or replacing worn parts, bodywork repairs, it was what many young blokes did.  I changed the head gasket on a Mini, but it took me more than 3 days though!  I mean, I had to keep referring to the manual, then source a torque wrench, interpret the manual again, buy another new gasket after damaging the first one I bought, and so it went.

 

One day, the brake pads needed replacing.  Referred to the manual again, followed the instructions - it took me what seemed forever, but it was the bleeding the brakes that stumped me!  I just couldn’t get the brake pedal to firm up.  I asked friends for help, we checked the manual, followed it to the letter, but the soft pedal persisted.

 

I wanted to save money, but I wasn’t about to gamble on such a fundamental safety risk.  The mechanic was retained, paid, and all was fixed professionally – firm brake pedal again and the confidence that it had been done right.

 

When it comes to home made wills, will kits and the like, when I last looked prices ranged from around $30 up to around $70.  I’ve read the instructions included in most.  Some are just 2 pages, others are in a comprehensive in booklet form.  The instructions are quite good and accurate.

 

Generally its appears to be an inexpensive way to get yourself a will.  But is it?

 

In my career as a solicitor, I guess I’ve personally helped clients in deceased estate matters where there was a DIY, or home made, will perhaps a couple of dozen times, maybe more.  In all of those cases – note I say all - there was a problem.  Some small, many were significant.  In the worst one, the will maker inadvertently gave a huge part of his modestly valuable estate to a religious organisation where it was clear it was never his intention.

 

In all cases, it caused additional stress and various degrees of additional expense.  Family disagreements resulted in many others.

 

I know my figures are just anecdotal, but it surely raises a serious issue.

 

From a cynic’s perspective, DIY and home made wills can be great for lawyers!  Given their high problem rate, it results in even more work and fees for lawyers retained to try to untangle the mess.

I began writing this almost a week ago.  It was timely that the Don't risk a DIY will article was published this week in the Sydney morning Herald.  Rather than have me reiterate how DIY wills can be more problematic, have a read of the article.  It’s quite succinct and to the point.

 

Bleeding the brakes just didn’t work for me, no matter how many times I read and followed the manual’s instructions.  Finally, the need to get a mechanic became obvious, I couldn’t get that brake pedal to work properly and, though totally mechanically unqualified, I knew there was a huge risk if that job wasn’t done properly. 

 

Unlike brake pedals that don’t work properly, a DIY will even after following instructions, problems in it are not so obvious to the unqualified and in my experience, far too often the problem only becomes apparent when it’s too late. 

 

Whether making your first or your next will, to protect and distribute your assets you’ve worked hard to build up, forget the DIY risks, and instead see the best person who is qualified and best able to help you, your solicitor.

Latest franchising review likely to lead to more improvements

Last month the Australian Government publicly released a report detailing the independent review into the franchising sector in Australia.  The background that led to the commissioning of the report, and links to the report itself, can be found here.

 

The report makes 18 recommendations.  The aim being to recommend ways of simplifying and improving the clarity of regulations governing franchising.

 

So, what does the report recommend?  Some recommendations are:

• amending the Code so franchisors when informing a franchisee of its decision to renew or enter a new franchise agreement, the franchisor must also provide a disclosure document at the same time
• modifying parties’ obligations to act in good faith (this also includes during negotiations as well as during the term of the agreement).
• additional and tighter controls on marketing funds, including such funds be held in trust (many franchise agreements require franchisees to make regular financial contributions, additional to other franchise fees, to a central marketing fund controlled by the franchisor that’s meant to be applied for that purpose)
• the Code be amended to require franchisors to provide prospective franchisees with a short summary of the key risks and matters they should be aware of when going into franchising (generally, would seem to be a good idea, providing it doesn’t result in generic and convoluted overly technical disclaimers that is likely to discourage prospects from reading these, rather than to take the time to aware of and consider the usual business risks so an informed decision is made)
• amending the Code so franchisors are prohibited from imposing unreasonable significant unforeseen capital expenditure on franchisees (I’ve seen this happen far too often over the years, even cases where a prospect was “assured” there was no foreseen capital expenditure required, only to be hit with such requirement within weeks, or less, of entering a franchisee agreement)
• amending the Code so that franchisors are prohibited, in the absence of a court order, from making franchisees being responsible for certain legal costs in a dispute resolution process and, interestingly, requiring franchisees to conduct their court case outside the jurisdiction, or State, in which the franchisee’s business operates.
• amending the Code regarding the transfer, renewal or end of a franchise agreement so that a franchisee must provide all information reasonably required by the franchisor when making the request for consent to transfer/sell or renew, but franchisors will not be deemed to have consented until 6 weeks after receiving all such information to enable it to properly evaluate the request (without more clarification I’m unsure here; this could enable a franchisor , intentionally or not, to delay or frustrate a franchisee’s request using the excuse the franchisee hasn’t yet provided all the required info).

The Franchising Code of Conduct and Australian franchising has been reviewed several times since the Code first came into existence in 1998.  Overall, it appears to have resulted in a highly regulated framework in the Australian business format franchising system relative to comparable other counties.

Then again, it’s probably fair to say too, that it’s likely why we have a world leading regulatory but successful and balanced framework for such.  If you’re interested in reading more about previous comments I’ve made on this subject, click here.

 

Meanwhile, let’s see what recommendations from this latest review will be implemented by this or the next Australian government.

Swimming pool NSW law changes - attention property owners

Recent changes to NSW swimming pool laws impose new  added obligations on property owners with swimming pools.

 

Property owners must, before 29 October 2013, register swimming pools on their property with their local council and obtain certification, or face a fine.  If this applies to you, you can register, now, online on the NSW Swimming Pool Register, here.

 

Will you be selling your property, with a pool?  You will... one day.  Note the following new requirement.

 

From 29 April 2014, contracts for the sale of land on which there’s a swimming pool, must have attached to them:

1.  A copy of either: a valid certificate of compliance; or an occupation certificate less than 3 years old authorising the use of the swimming pool; and
2. Evidence that the swimming pool is registered – this will be a new additional compulsory prescribed document.  While this is a topic for another article, if a compulsory prescribed document is not attached to a contract at the time it’s entered, the buyer has additional rights to get out of the contract, even if the buyer’s cooling-off period has expired.

Is your property an investment property and you’re not selling?  From 29 April 2014, you won’t be able to lease it without first providing a valid compliance certificate.

  

A major reason for the tightening up of swimming pool laws, of course, is to further combat children drownings and near drownings.

There's still a little time but if you're a pool owner, don't be complacent.

No funds? Don’t buy. Simple.

You know how that saying goes... “I’ve said it once, I’ve said it a thousand times...”

 

Buying and selling real estate is serious.  It’s seriously legal stuff.  It’s one area where contract law issues can cause big problems for ordinary folk.  Not unlike when one hears of businesses having a legal fight over breaches of contract.

 

In simple terms, if two parties validly enter a contract and one party breaks the contract, that party is liable to the innocent party for the loss the innocent party suffers as a result.

 

Like most lawyers, when acting for a property buyer, one the first questions I ask is whether they have the funds, either cash or an unconditional loan approval, to pay for it.  If they don’t, either don’t buy, or at least don’t commit to the contract before funds are secured.

 

It’s not uncommon for buyers intending to finance, at least in part, their property purchase from the proceeds from their sale.

 

The premise is, always ensure you have binding sale contract with your buyer (eg. where your buyer’s cooling-off rights have expired) before you’re committed to your purchase.  Otherwise, if you commit buy in the expectation your sale is about to happen and it doesn’t, you could be left with a financial disaster on your hands.

 

Sounds logical, doesn’t it.  Yet it happens far too often reported in this high profile case involving actor Toni Collette and her husband.  Their breach is reported to have cost them $800,000.  They reneged on their purchase contract when they couldn’t sell their own home.  The seller suffered huge loss when they couldn’t re-sell their property for the amount Collette had originally contracted to buy it

The numbers in that case were big.  Even so, even when we’re talking of more typical average Sydney outer suburban home prices, a $10,000, $20,000 or $50,000 liability can cause financial pain.

As the reporter states:

“...get your finances approved before you buy, and if you’re selling and buying in the same market have a contingency plan.”

There’s often much pressure when trying to get the timing right when dealing with simultaneous sale and purchases.  More reason, I say, to ensure you have your solicitor on board to help you though these minefields.

Is your franchised business falling behind? You CAN fight back!

Business format franchising in Australia has proven to be a reliable pathway for many, especially those with little or no experience in running a business, to own and successfully run their own small business.

 

Australia has a world leading regulatory framework, policed by the ACCC.  Unscrupulous and unprincipled franchisors do get caught and prosecuted by the ACCC - I’ve written about some such cases from time to time in this blog.

 

Most successful small businesses are such because of hard work.  Running a reputable franchise system business doesn’t guarantee success, however, but it does reduce the chance of failure.



Even in a successful franchised business, sometimes things go astray, or aren’t working as well as they should.  If this sounds like you, here’s a Sydney Morning Herald article by David Wilson with some useful tips that may be just what you need to help you.  Together with help from your willing franchisor, your accountant and your solicitor, you still can get back your mojo!

Are you a landlord? Does your rental property have a pool? Double check its safety!

A news story yesterday reported on the rescue by their father of his 2 toddlers from a Sydney suburban backyard swimming pool.  Thankfully, that family averted a near tragedy.

 

News reports also stated that the home was a rental property and, importantly, that the pool’s gate lock was faulty, and section of the pool’s fencing was loose.

 

It’s a timely reminder for all home-owners to effect and maintain their pool safety equipment and to always supervise children playing in or near water. 

 

Property owners too have a legal responsibility, and owe a legal duty to their tenants to eliminate defects in their premises.  See the post I wrote almost a year ago for more on this very topic.

 

Have a happy, and safe, holiday!

Is Santa real?

A question that to me seems to be asked more often each year.  A common theme accompanying that question is whether it’s fair to “lie” to our kids.

 

Our two youngest were so genuinely excited after receiving their personally addressed letters from Santa a few days ago.  Their excitement and reaction differed little to how our two older ones reacted when they were a similar age, whether sure they saw Rudolph and the sleigh in the early hours’ night sky, or the reindeer hoof prints leading to the house.  The older two made sure they did nothing to spoil the younger siblings’ wonder.

 

I don’t believe the same childhood experience of the two older children, or myself has had any detrimental effect on our upbringing, nor has it taken away our Christian identity or the true recognition of Christmas as celebrating the day of Jesus’ birth and all that symbolises for many.

 

Santa is probably a valid and powerful symbol inspiring the generosity of spirit that is also Christmas; that generosity is real and transcends all ages, and dare I say, all belief systems

 

If one believes in that generosity of spirit, then it’s not drawing such a long bow to also say that in that case, Santa is indeed “real”, and encouraging that is not “lie”.

 

Merry Christmas everyone!

So, will minority strata owners be forced to sell?

While the officially the opportunity to make submissions and comments for the Review of strata and community scheme laws has now closed, according to the NSW Fair Trading site, comments and submissions are still currently being accepted.

 

One issue raised in the review process concerns the question of whether minority strata owners can be forced to sell to make way for development.  I’ve commented on this before; I believe the issues I highlighted remain pertinent. 

 

Leesha McKenny in her SMH article today encapsulates the issue by asking can you fairly balance the rights of owners who want their ageing apartment building redeveloped with those of an owner refusing to sell? 

 

Information about the Review is on the NSW Fair Trading site, and a good resource, with online comments and links to submissions, can be found on the Open Forum site here.

 

According the NSW government's indicative timetable, drafting of new laws is to occur by about June next year, with a release of an exposure draft bill in about July next year.  Let's wait and see.

Buying into a franchise? Here's one bit of essential, and free advice!

According to the Franchising Australia 2012 report, published by Griffith University, in Australia there are currently about 1,180 business format franchisors, and about 73,000 operators of business format franchises.  These are big numbers.
 

For many years I have advised and continue to advise franchisee clients, both long time operators and first timers.
 

With new intending franchisees, there’s much to discuss, advise, explain, check, re-check, and so on.  Particularly for newcomers, usually advice ought to be sought from their solicitor, accountant and business advisor.
 

Are you thinking about, or have decided to buy a franchise business?
 

Here’s what I think is probably the best early advice, and easiest to follow and understand by newcomers:

Before committing, talk to and ask as many questions as you can to as many current franchisee operators and owners in the system as possible.

That’s how you often get a real-world sense of how the system actually works with real franchisees, how much real or worthwhile support is provided by franchisors, and if the rewards are actually there to be earned. 
 

Unfortunately, sometimes this can reveal that the reality doesn’t quite match the claims in the glossy brochures.  The time to find this out is before committing to buying into a system.
 

A compulsory document that must be provided by franchisors to prospective franchisees before franchise documents are signed, is a Disclosure Document.  One of the may types of information it contains is the names and contact details of other franchisees, at least in your state, if not nationally.

Use it!

NSW first home buyers' benefits and stamp duty exemptions: make sure your advice is up to date

I’ve had the unpleasant experience recently in having to explain to a number of clients who have shopped for property, experienced the usual anxiety and excitement, seen their finance adviser & assured of finance, that the entitlement or benefit their finance adviser explained they’d receive, that they actually won’t.  Even though it was someone else who provided incorrect or out of date advice, I’m made out to feel like the Grinch because I provided the correct advice as what the current law is!

So, here is what I hope is a quick and simple statement of what the NSW situation is regarding stamp duty exemptions and first home owners’ benefits for contracts made on or 1 October 2012 to date.

First home buyers
Current scheme is the First Home Owner Grant (New Homes) Scheme.

Where the property is $650,000.00 or less, a first home buyer who buys or builds a new home is eligible for a $15,000.00 grant.

This grant reduces to $10,000.00 for contracts made from 1 January 2014.

In addition, there is an exemption from paying stamp duty when buying a new home, or vacant land where a new home is to be built.  This applies for homes priced up to $650,000.00, and vacant land up to $450,000.00.

Non first home buyers

There is now the NSW New Home Grant Scheme. 

Non first-home buyers are entitled to a grant of $5,000.00 if they buy a newly built home (including "off the plan" purchases), priced up to $650,000.00.  If the duty normally payable happens to be less than $5,000.00, the difference is given as a grant.

Non first-home buyers who buy vacant land priced up to $450,000.00 with the intention of building a new home on it are also receive the grant.

 

Regional Relocation Grant

The RegionalRelocation (Home Buyers Grant) is about helping previous owners of a metropolitan property with the cost of relocating to a regional home with a one-off grant of $7,000.00.
 

The price of the regional home must not exceed $600,000.00 (or $450,000.00 for vacant land). There are other requiremnets, but these are the major ones.

 

That’s it!

There’s no more $7,000.00 first home owners grant, no more reduced stamp duty, no more new home buyers’ supplement, no more first home owner boost.

If you’re in the process of buying now and you’re advised differently to what’s above, or there is a question mark about what benefits exactly you might be entitled to, or just to check your eligibility, see your solicitor first.