For lawyers and conveyancers in the Australian Capital Territory
Once a property is registered with Homes for Homes, it continues to participate even when the property is sold, facilitating a 0.1% donation of the sale price at time of sale by subsequent homeowners. This creates a long-term donation stream. Donated funds are granted to housing associations to increase the supply of social and affordable housing, providing shelter to some of Australia’s most vulnerable people.
How the legal mechanism operates in the ACT
To recognise a property’s participation in Homes for Homes, Homes for Homes lodges a caveat over the land title. The caveat acts as a simple reminder to the registered proprietor, of their promise to donate 0.1% of the sale proceeds to Homes for Homes when selling their property.
When representing a seller
Step 1: Identify participating property
When conducting a title search, a participating Homes for Homes property is easily identifiable. Homes for Homes recognises a property’s participation by registering a caveat over the land title prohibiting Transfer without caveator’s consent. The caveat will appear in Registered Encumbrances and Interests.
Step 2: Disclose Homes for Homes in contract of sale
A property participating in Homes for Homes must be disclosed as a special condition in the contract of sale. Simply download the Homes for Homes special condition for insertion in the contract.
Step 3: Request consent to Transfer of Land
As part of settlement, Homes for Homes will consent to the Transfer. Written consent will be provided by Homes for Homes upon request any time prior to settlement by emailing [email protected]. Emailed copies of the Homes for Homes consent will be accepted over the counter by Access Canberra who hold a copy of Homes for Homes authorised signatories.
Step 4: Disburse Homes for Homes donation
A cheque should be made payable to Homes for Homes Limited. Cheques should be accompanied by a covering letter containing the details of the property, proprietor, purchaser and settlement date. Cheques should be posted to:
Homes for Homes Limited
GPO Box 4911
Melbourne VIC 3001
Homes for Homes will issue a tax deductable receipt to the proprietor upon receipt of the donation.
When representing a buyer
A buyer may purchase a property participating in Homes for Homes. A simple title search will let you know if it is. All participating Homes for Homes properties are easily identifiable. Homes for Homes recognises a property’s participation through registering a caveat over the land title prohibiting Transfer without the Caveator’s consent. The caveat will appear in Registered Encumbrances and Interests.
A property participating in Homes for Homes will be disclosed to the purchaser as a special condition in the contract of sale. By keeping the property registered with Homes for Homes, the purchaser is continuing the promise and joins a growing number of Australian homeowners making a difference to help solve one of Australia biggest social issues. When the purchaser decides to sell the property in the future, whenever that may be, 0.1% of the sale price from their sale will also be donated.
As a voluntary initiative, the proprietor on title can withdraw a participating property at any time. Homes for Homes can only act on the instructions of the proprietor, so if your client wishes to withdraw, please instruct your client to email Homes for Homes at [email protected]. Upon receipt of request, Homes for Homes will prepare and lodge a Withdrawal of Caveat with Access Canberra. Homes for Homes will notify the proprietor when the property has ceased participation.
If the Withdrawal of Caveat is to be lodged as part of a settlement transaction, a paper Withdrawal of Caveat Form will be provided to the requesting party.