Browse Forums Buying Land 1 May 26, 2011 9:55 am We purchased a block of land pretty much off the plans about a year ago, signed the contract and paid a small deposit... Now the land is currently being registered and titled... Do we pay stamp duty closer to settlement?? Re: when do i pay stamp duty? NSW 2May 26, 2011 10:01 am It depends if your paying for the land in fall your self or going through a bank. In Vic if you are paying for the land outright your self you have up to 3 months to pay stamp duty, and have your name on the title. If you go through a bank they obviously want the title as soon as they pay for the block so it needs to be done at the same time. Re: when do i pay stamp duty? NSW 3May 26, 2011 10:13 am Do you qualify for the stamp duty exemption for buying vacant land to build? If not, your solicitor will ask for the stamp duty funds a few days before settlement. Alternatively you can ask for the stamp duty to be taken out of the loan amount and paid simultaneous with settlement. Land at Chermside At tender stage Re: when do i pay stamp duty? NSW 4May 26, 2011 12:04 pm unfortunatly no i miss out on the new scheme becuase we signed the contract a month before it came to be... even tho the land wasnt registered! Settlement on the land will be in 2 weeks time. Re: when do i pay stamp duty? NSW 8May 27, 2011 9:58 am I've never heard of the 3mth grace period? But it has been 5yrs since I was a lending mgr so things may have changed. Back then you always had to pay it either before or on settlement. We are just about to settle on Monday for an investment property and I know we are paying stamp duty on that day. Some things are worth waiting for. Re: when do i pay stamp duty? NSW 9May 27, 2011 2:18 pm We bought a block of land (NSW) in November 2009. It was registered in April 2010 but we had to pay the stamp duty within 3 months of the purchase (January). The Office of State Revenue is the place to go for your question. See this web page: http://www.osr.nsw.gov.au/taxes/transfer_land/ FYI here is an extract of the important bits from that web page: A sale or transfer of land (including improvements) or a business in NSW is liable to duty. It is immaterial whether or not the transaction is effected by a written instrument or by other means, including electronic means. A liability for duty arises when the sale or transfer occurs. However, if the sale or transfer is effected by a written instrument, liability for duty arises when the instrument is first executed. Duty is payable within 3 months of the date liability arises. The purchaser or transferee is liable to pay the duty. In plain English I think it says: you must pay stamp duty within 3 months of both party signing the contract ("written instrument" = the contract, "first executed" = signed / exchanged). DKP Re: when do i pay stamp duty? NSW 10May 27, 2011 5:47 pm I agree with dkp, We bought unregistered land in March 2011. We have 3 months from date of exchange or settlement (whichever occurs first) to pay the stamp duty. I have to pay mine next week Land is still not registered Re: when do i pay stamp duty? NSW 13May 30, 2011 5:36 pm Hello All, Let me put this one to bed as i have been practically in this soup. Stamp duty is liable to be paid when exchange of contract takes place as per Duties act. It is irrelevant when the land settles. OSR NSW provides a 3 month grace period after the exchange of sale agreement. Under section 49 of the duties act stamp duty is postponed to settlement only if the property purchase is officially a 'house and land' package. If you buy the land and seperately enter into a contract with a builder to build on top then it does not qualify for 'house and land' package, that means stamp duty is to be paid within 3 months of sale agreement exchange for the land itself. I have spoken to OSR 3 times in this matter and was actually charged a fine of approx. 180 for being 2 months late (that is 5 months after contract exchange). Yes my solicitor didnt take notice untill i brought it to his attention, they rushed it then and got it paid up as they realised their mistake. The fine is going to be deducted from his fees. I hope this helps. ===================================== http://wisdompemulwuy.wordpress.com/ ===================================== Re: when do i pay stamp duty? NSW 14May 31, 2011 5:13 pm you are correct! it is due withing 3 months of exchange. Doesn't matter if its a vacant lot and hasn't registered or settled yet... Our solicitor stuffed up and has offered to pay the fine! I will be organising a bank cheque on Wednesday to have this payed ASAP!!! Re: when do i pay stamp duty? NSW 15May 31, 2011 8:37 pm Our land contract was signed 12 mths ago and we have not paid stamp duty yet and have not been fined. Not house and land but we were told we pay stamp duty at settlement which happens to be Friday. So far this seems to be correct as no fine. As I mentioned though I am in Victoria so this may be why ??? Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 20352 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4813 Hi All, see above image. The required setback from the rear boundary in my case is 5m, as you can see the shape of the site and location of the boundary is slightly… 0 8431 |