Stamp duty question

We have been told by our lawyer that our land has been registered and since we have not sign our building contract yet, we'll have to pay stamp duty then claim it back afterward.

We are currently doing the final tender so the building contract should be near.

Should we pay stamp duty then claim it back? (that's if we can)

Just wanted to know what's the best way to approach this.

Thanks

Which state are you in?

The number 1 question on the forum !!!!!!
Seeing as he is building a wisdom i would say its NSW ...

NSW

Hi Jordann

Do you mean Stamp Duty on the land or house?

Land - SD is due when you settle on the land. It has nothing to do with the house.

House - There is no SD on building a house.

Registration fee's are different. When you register a mortage you have to pay a reg fee but it's only like $500.00ish or something.

This is the case in Vic should be the same in NSW.

Anyone know?

Stamp duty is only payable on the land, not the house, within 3 months of exchange of contracts in NSW (irrespective of land being registered/"titled" and settlement).

Are you a first home buyer? If so, you may be exempt from paying stamp duty at all.

Not sure what you mean by "claiming it back". The stamp duty concession (FHP) is completely separate from FHOG.

Yes we are first home owners.

I know that stamp duty is for land only, just that my lawyer is telling me I have to pay stamp duty first when we do settlement as we have not sign our building contract, then claim stamp duty back.

That is what confusing me as I thought I was exempt as well.

Not sure if he is lost or I am

Jordann as first home buyers you are exempted from paying stamp duty however without any evidence (yet) that you are going to build your primary residence (house). So the government plays it safe by taking your money (stamp duty) then returning it to you when you proof that you are building your house (building contract).

Btw I am in the same boat, got the land, paid the stamp duty now waiting for building contract to claim back my stamp duty.

Ed

Oh OK.

How do you actually claim it back?

Is there a website of form I could get more information from?

In NSW, the FHP application form requires you to declare that you intend to build a residential property on the property. It does not require any proof of the same.

When we purchased our land, we didn't provide OSR with anything other than a copy of the land contract and transfer, and we were immediately stamped as exempt prior to settlement.

Jordann, check out:
Wesbite: http://www.osr.nsw.gov.au/benefits/firs ... al/fhplus/
Application form: http://www.osr.nsw.gov.au/lib/doc/forms/oda012.pdf

Thanks principessa.

This all makes more sense now.