For lawyers and conveyancers in Victoria
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 VIC
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
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. For ease, the Homes for Homes special condition is commonly signed by the purchaser at time of contract signing.
Step 3: Email executed special condition and advise settlement date
Once executed, the Homes for Homes special condition must be emailed as an attachment to [email protected] along with property details and proposed date of settlement.
Step 4: Invite Homes for Homes legal representative into the PEXA workspace
Upon receipt of the executed special condition, Homes for Homes will confirm the legal representative acting on behalf of Homes for Homes in this settlement and request you invite the Homes for Homes legal representative into the PEXA workspace. Homes for Homes’ legal representative will prepare and execute a Withdrawal of Caveat on behalf of Homes for Homes as part of the settlement lodgement case.
If the Withdrawal of Caveat is to be lodged as part of a settlement transaction that is excluded from electronic lodgement, a paper Withdrawal of Caveat Form 89W will be provided to the requesting party. Where the purchaser has executed the special condition, a new caveat will be registered on title post settlement.
Step 5: Disburse Homes for Homes donation
The caveat recognising a property’s participation in Homes for Homes will appear in the Land Titles screen in PEXA. At this point, you will need to copy the dealing number for use as a payment reference before creating the line item in the Financial Settlement Schedule.
Navigate to the Settlement tab and click Add Destination. Select Homes for Homes Donation from the Destinations Funds Details Category drop down options in the Destination Financial Line Item screen.
Settlement via Cheque
For a settlement transaction that is excluded from electronic lodgement, 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 deductible receipt to the proprietor upon receipt of 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 of Land only. The caveat will appear in Encumbrances, Caveats and Notices.
A property participating in Homes for Homes will be disclosed to the purchaser as a special condition in the contract of sale. By executing the Homes for Homes special condition and keeping the property registered with Homes for Homes, the purchaser is continuing the promise and joins a growing number of homeowners making a difference to help solve one of Australia biggest social issues—homelessness. When the purchaser decides to sell the property in the future, whenever that may be, 0.1% of their sale price will also be donated helping grow the pool of donated funds.
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 instruct our legal representative to prepare and lodge a Withdrawal of Caveat via PEXA. Homes for Homes will notify the proprietor when the property has ceased participation.