Solicitor and conveyancer instructions

When a DHA-leased property is sold, the purchaser assumes all the rights and obligations under the existing DHA lease and, where applicable, the Property Care Contract.  

The vendors solicitor must provide the purchaser’s solicitor with complete copies of all DHA lease documents, including any offers for renewal. The purchaser must review these documents before settlement to understand the DHA lease terms and conditions.

If the purchaser of a DHA-leased property is also a Defence member, you must notify DHA. DHA will issue further instructions and any required documentation. 

For properties subject to Lease Edition 7, a Deed of Novation is required to transfer the rights and obligations under the existing Standard Form Agreement to the purchaser for the remainder of the lease term. 

Once contracts have exchanged, the owner is required to notify DHA as soon as possible through Online Services. 

The owner should: 

• log in to Online Services and upload a fully signed copy of the contract of sale 
• provide the required contract details, including: 
  • the name and contact details of the solicitor or conveyancer acting for both the vendor and the purchaser, including an email address
  • the expected settlement date
  • purchaser details, including full legal name, phone number and email address
  • where the contract is signed in counterpart, copies of both the vendor-signed and purchaser-signed execution pages.

Uploading the contract allows DHA to process the change of ownership after settlement and communicate settlement-related matters with the vendor’s and purchaser’s solicitors. 
 

After contract exchange, DHA will issue settlement and financial advice to both the vendor’s solicitor and the purchaser’s solicitor prior to settlement. 

This advice will include:

• current monthly charges
• rental information
• any outstanding charges, including maintenance, rates and other outgoings
• a Deed of Novation (applicable for Lease Edition 7)
• a Landlord Information form – to be completed by the purchaser 
• a Defence member acknowledgement form –required where the purchaser is also a Defence member.

To enable DHA to prepare and issue this information accurately, the owner must notify DHA of the contract exchange and any changes to the settlement date. DHA can only issue settlement and financial advice after contract exchange. 

Delays in notification, or failure to advise of changes to the settlement date, may affect rental payments. 

DHA does not: 

• adjust rent at settlement
• attend settlement.

Some financial institutions require consent to lease or mortgagee’s consent as part of the purchaser’s finance approval. If a purchaser requires DHA to execute these documents, they must provide them to DHA for review and execution well before settlement. 

These documents are required for settlement and may require wet-ink signatures and hard-copy processing. DHA needs sufficient time to alow for review, signing and return. Documents provided close to the settlement date may not be executed in time. 

DHA aims to sign and return consent documents within 3-5 business days, subject to receiving complete and correct documentation. 
 

If a purchaser’s pest and building inspection identifies items that require a response from DHA, the owner may submit a Request for Maintenance Review through Online Services, or the vendor’s solicitor may provide a full copy of the report directly to DHA.

Items requiring review must be clearly identified, including their location within the report (for example, page and paragraph reference).

DHA will assess whether the identified items fall within its maintenance obligations under the DHA lease and, where applicable, the Property Care Contract, or whether they are the responsibility of the owner or occupant. DHA aims to respond within seven days, subject to any inspection requirements.

Where DHA is responsible, DHA will arrange rectification and confirm the outcome to the relevant parties, regardless of any change in property ownership. 
 

Upon settlement, the following documents must be provided to DHA to establish the purchaser in DHA systems and enable rental payments to commence:

• Letter of attornment (usually prepared by the vendor’s solicitor) on solicitor’s letterhead and including:
  property address
• settlement date
• vendor name
• purchaser name (as shown on the title)
• Landlord information form (completed by the purchaser)
• Defence member acknowledgement form (required where the purchaser is a Defence member)
• Deed of Novation - for Lease Edition 7 properties. 

The purchaser’s name shown on the Letter of Attornment and the Landlord Information Form must match the name on title. 

DHA pays rent one month in advance and does not perform rental adjustments at settlement. The settlement and financial advice issued to solicitors will confirm the date and amount of the final rental payment.

Once this advice is issued, rent is placed on hold until DHA is notified that settlement has occurred. Any changes to the settlement date must be advised to DHA to ensure financial information remains accurate.

The new owner’s rent will commence the first day of the month following settlement, subject to DHA receiving all required documentation. 
 

• Notice of Sale: The Notice of Sale provided to the LTO or LPI must show the purchaser’s preferred postal address, not the leased property address.
• Special conditions: DHA does not require any special conditions in the contract. The DHA lease and, where applicable, the Property Care Contract must be annexed. 
• Fixtures: The owner can provide a list of fixtures for inclusion in the contract.
• Keys: Keys are not provided at settlement. The occupant retains keys for the duration of the lease. DHA holds keys during vacancy periods. 
• Lease Edition 7: A new Standard Form Agreement is not required. A Deed of Novation transfers the existing agreement to the purchaser for the remainder of the lease term. 
   

• Defence member acknowledgement form (only applicable for purchasers who are Defence Members)
• Landlord information form 
• Deed of Novation.