Ownership of real estate in Australia conveys certain rights and responsibilities to the title holder. However, many property investors are unaware of how to make the most of their legal title to land and can end up with a portfolio that puts them at risk.
Property law in Australia may seem complex, but it’s actually based on a simple and efficient mechanism called the Torrens system. With proper legal guidance and advice, investors can make sure they are secure in their holdings, especially in the event of unexpected complications.
World class property title system
Australians have been pioneers in many areas and property ownership is among them. The legal framework we currently use to record title to land and property, the Torrens Title System, is in fact a South Australian innovation dating back to 1858. It was sponsored by Sir Robert Richard Torrens and is one of our country’s very successful exports. The Torrens system is so recognised for its efficiency that it is used by all Australian state governments, and has been adopted by countries around the world.
It is an amalgamation of English and other European land laws, as well as the transfer system used by shipping companies of the time. The end results was a title registrar that enabled owners of real estate to lay claim to their land in a manner that cannot be disputed, and on certificates of title which are centrally held.
Modern property investment law
Although property law in Australia is based on a system that is purposed to protect landowners and their rights, there are situations where investors and homeowners can leave themselves exposed in a legal sense.
As our lives have become more complex, business, family and property have become increasingly intertwined, which has created a need for efficient structuring of portfolios to enable them to protected to the full extent of the law. For many investors, this involves the establishment of a trust.
Existing as a legal entity in its own right, trusts can be used to keep property safe from the effects of divorce, professional liability, estate planning and tax implications.
However, trusts are not the only way to structure your property ownership, and each situation will call for appropriate analysis and specific legal advice. This is where The Rein Group comes in. Through The REIN Group Circle of Safety, we make sure that all of our clients have unparallelled access to a network of professional and legal services that can help them to make the most of their investment properties.
Purchasing property is a legal transaction that involves transfer of title and assuming those rights and responsibilities mentioned above. Conveyancing is the process of moving the ownership of a piece of real estate from the previous owner to the new one – whether it’s an individual, trust, company or other legal entity that is purchasing the property.
To make sure you are receiving top service at a fair price, we are able to recommend legal representatives to help you with this part of the property investment process.
Specific legal advice for property investment
There are unfortunate circumstances in life that we can’t avoid sometimes, including the breakdown of relationship or a case of professional liability in high-risk professions, such as surgeons or pilots. If you have specific concerns about what to do with property that you own or intend to purchase, The REIN Group is here to listen and help wherever possible.
Having the right legal structuring in place for your property investment can help you plan for the future in so many ways. Not only can legal advice augment your retirement strategy, it can also help you reduce your tax bill at the end of the day.
Getting legal advice and financial advice that is on the same wavelength can be essential to making the most of your portfolio and reducing your outgoings.