I have been asked to share the notes I took from my yesterday’s meeting with Garth Lucas of Lucas & Lucas. (Garth is a senior practitioner in a highly regarded law firm with extensive conveyancing experience.)
Garth’s advice:
1: the panic is not real
If one of our lawyers for any reason didn’t turn up with the last $ on 24/11/20 the buildings will still be there
The cohousing bank could be asked for individual discharges of mortgages over each title – the cost would be $80 per unit
2: Everything (required for settlement on 24/11/20) can be prepared in advance.
As soon as the unit title plan is available (after surveying) all the documents can be prepared. (There is communication between all conveyancers prior to settlement.)
No one will have to check documents on 24/11/20
3: We (shareholders) can monitor this in advance and we should do this.
Whichever lawyer we choose should be prepared to have external peer review/audit of the preparation
4: We can ask for certifications that everything is done and up to date and that undertakings are all in place – two or even three times
5: On the actual day
– the bank deposits are received
– the titles are released (about two mouse clicks once the lawyer is logged in)
– and the accumulated money is transferred to clear the mortgage – credit the cohousing company. If 12 payments (e.g.) arrive in the morning, 12 titles could be released in the morning.
Last night there was immediate objection to the additional costs associated with peer review/auditing so I emailed him about that this morning. His reply as follows:
If you change to a law firm that operates in teams, then you are paying for team members to meet and plan things, review things, check each other’s work. That’s two people at $450 an hour, and another two at an average of $200 an hour, all meeting for 90 minutes and $2000 spent on that meeting alone plus GST, and because it’s part of what the big firm is doing, and what would be behind the banker’s recommendation that a big firm team is required.
And, yes, everything costs, and if there is legal work there is a charge.
If Helen was asked to work with another person, then, yes there may be some diplomacy required. Obviously Helen would not want someone to come in an nitpick over her work and then report on her on shortcomings to her clients. She would be much more comfortable if you said that you have a lot at stake in preparing for the settlement, and would like a joint report from her and the reviewer, or McMillans etc detailing what is done and how ready you are. Helen will understand that there are a lot of you and some know her better than others.
So, fellow shareholders, I hope that’s helpful.
Gay
Gay Buckingham
+64 27 4544012
