Effective from 1 January 2024, the Sale of Land Act 1962 has been amended to prohibit the apportionment of land tax between the purchaser and the vendor at settlement, unless the property has been sold for the threshold amount or more ($10,000,000 in 2024, indexed by the CPI in subsequent years). This is good news for purchasers, especially those buying from investors or developers, if they intend to live at the property and would avoid land tax themselves under the principal place of residence exemption. Any land tax owed by the vendor will be paid off at settlement out of the sale proceeds ..read more

Although trusts and superannuation funds are legal entities that pay tax, they cannot own property themselves directly.   If a trust or superannuation fund wants to buy a property, it is purchased by its trustee(s).  This means: The legal owner of the land is the trustee, whilst the beneficial owner(s) are the beneficiaries of the trust or superannuation fund. Only the trustee’s name is shown on the Certificate of Title, there is no reference to the relevant trust or superannuation fund. On the contract, the trustee is shown as the purchaser AS TRUSTEE FOR its trust or superann ..read more

The Adjustments general condition of a contract of sale of real estate reads as follows: The periodic outgoings and rent and other income is apportioned on the basis that the vendor is liable for the periodic outgoings and entitled to the rent and other income up to and including the day of settlement. Council and water rates, land tax (that has been assessed on a single holding basis) and owners corporation fees are periodic outgoings, all of these charges are apportioned between the vendor and purchaser in the Statement of Adjustments. Once-off council levies (e.g. road construction fees ..read more

Are you asking yourself when you need a property valuation? First, let’s talk about stamp duty. Stamp duty is calculated on the dutiable value of the property. This is the greater of: The consideration (if any) that was paid for the property.  This includes any GST, if this is part of or is added to the price of the property. The market value of the property. If the seller and the purchaser are associated or related persons, then you must provide evidence of the market value of the property: A letter of appraisal signed by a licensed real estate agent. A valuation by a certified practi ..read more

Stamp duty is calculated on the dutiable value of the property. This is the greater of: The consideration (if any) that was paid for the property.  This includes any GST, if this is part of or is added to the price of the property. The market value of the property. If the seller and the purchaser are associated or related persons, then you must provide evidence of the market value of the property: A letter of appraisal signed by a licensed real estate agent. A valuation by a certified practising valuer who is a member of the Australian Property Institute or by a member of the Real Esta ..read more

If you’ve not an Australian or New Zealand citizen, and you don’t hold a permanent visa allowing you to be in Australia, then you are regarded by the Duties Act as a “foreign natural person”. When foreign natural persons, foreign corporations or foreign trusts buy land in Victoria, they must pay an additional 8% penalty stamp duty on their property purchase (in addition to the normally assessable stamp duty). Importantly, when New Zealand citizens are out of Australia (even temporarily), they revert to become foreign natural persons until they re-enter Australia. Thus, to avoid becoming liable ..read more

If you buy a property in rural or regional Victoria, you may see a few differences from buying a home in Melbourne. The property: May not have a residence on it. May not have some of services that are normally connected to city properties, e.g. water, sewerage, gas, telephone. May not have a street address assigned to it by Council, and instead be referred to only by its lot number. May be located in a bushfire prone area. May be being sold with associated water rights, or a riparian lease.  Water rights are associated with many parcels of agricultural land, where the landowner has the r ..read more

If you buy a property subject to a lease, then at settlement you become the landlord and are bound by the terms and conditions of the existing lease. If you’ve bought a residential property with the intention of living there yourself, this means that you’ll have to wait until your tenant’s lease has been legally ended, in accordance with the Residential Tenancies legislation and regulations. If you’ve bought a commercial property subject to lease, the vendor (if registered for GST) may mark the contract as a “going concern”.  This means that if you (as the purchaser) are also registered f ..read more

If a property has more than one owner, and they own the property as tenants in common, typically A and B are shown as tenants in common proprietors on a single title. However, it is possible to have individual titles issued for each owner’s respective interest. For example, if A and B own a property as tenants in common, there could be two (partial interest) titles issued: one title showing A owning a part share of the property, and another title showing B owning a part share of the same property. This arrangement would enable A and B to independently offer their part shares in the property as ..read more

Contracts drafted by vendors occasionally include special conditions that require the purchaser to pay the vendor’s legal costs. However, subsection 42(3) of the Property Law Act 1958 (Vic), states “No contract of sale relating to land shall contain a clause or condition stipulating for the payment by the purchaser to the vendor or to the legal practitioner or conveyancer of the vendor of any costs and expenses”.  The subsection then proceeds to make three exceptions to this general prohibition.  In other words, unless a special condition that requires the purchaser to pay the vendor ..read more