How to avoid legal problems with IPC property consultants
What happens when a Melbourne property developer has to deal with a property consultant who’s not a qualified lawyer?
If you’re a property developer and you’re dealing with someone who’s a property lawyer and they’ve taken out an IPC (Independent Property Counsel) license and have a degree from an accredited university, the odds are they’re going to be able to help you out with a legal problem.
I’m not going to go into a long explanation about how IPC services are licensed in Victoria and whether or not you can do anything about it, because that’s beyond the scope of this article.
But the point is that if you’re working with someone with an IPM (Independent Pty Ltd) or PIP (Property Partnerships in Victoria) license, you might have a legal issue to worry about.
It’s also worth noting that the IPC and PIP services are not licensed as “property consultants”.
What that means is that they can’t advise you on what a property should be worth.
This is important because if they don’t know the value of your property, they may be able’t give you advice on how to assess it.
If they don-t know how much the property is worth, they won’t give any advice at all on how much you can deduct for repairs.
And if they can tell you the value, they can also tell you how much a property will cost you if you sell it or otherwise sell the property.
That’s because the IPP or PICs services are regulated as “business services” and they can only provide the services as part of their business.
What they can and can’t do is assess the value and deduct a certain amount of money from the sale of your home or apartment.
So what does that mean for you?
It means that they may not be able tell you if the property you’re considering selling is worth more than it was when you bought it or if it’s worth less than what you paid for it.
The key is to understand that the price you pay for your property is only the price that the real estate agent and property developer paid for the property when it was sold.
The real estate agents and property developers aren’t just making money on the sale but they also make money on any repairs you do.
How the realtor determines the price of your residential propertyThe way the realtors and property development companies are regulated in Victoria is that the prices they charge are determined by the value or market value of the property and how it was used when it sold.
The realtor is also responsible for determining the price they charge for their residential properties.
The actual market value (MV) is what you would expect to pay for a property if you sold it on the open market.
For example, a Melbourne apartment building with a market value at $300,000 would have a price tag of $300 million.
Under the terms of the law, a realtor can charge you a markup of 20 per cent on the price if they think the value will be less than that.
You can deduct up to $100,000 from your purchase price, up to 25 per cent for repairs, and up to 50 per cent if you don’t use the property at all.
However, if you do use the home or you rent it, you’ll only be able, under certain circumstances, to deduct 25 per per cent of the price.
There are different thresholds you need to meet in order to be allowed to deduct the full amount of the sale price from your own expenses.
Here are the thresholds for deducting the purchase price from the actual sale price and for deductming the market value:If you sell the real property for $300k and the value is less than $300million:You can only deduct up, 25 per, 50, or 75 per cent.
If you purchase the real home at a market price of $600,000:You may deduct up 25 perc, 50 perc and 75 per c.
If the realhome sold for $400k and you didn’t use it at all, you can only claim up to 75 perc.
If a real estate development company uses the property for a business purpose (like leasing it for a private or corporate client) you can use the market price, but you may not deduct the market amount.
You can use your market value, but not the actual market amount, as your deduction for repairs if you were a tenant in the home.
If it’s not the same property:If a property was sold for less than the actual value of $400,000, the property developer can deduct the price from their gross profit.
Instead of deducting up to 80 per cent, they could deduct 25 percent.
These thresholds are meant to protect against the possibility that someone could take advantage of an unqualified realtor and make money off