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Late Request from Buyer

Discussion in 'The Buying & Selling Process' started by MTR, 30th Nov, 2015.

  1. MTR

    MTR Well-Known Member Premium Member

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    I found this interesting, I have just sold a property in Sydney, gone unconditional Friday.

    We now we receive a request from the buyer to delete reference pertaining to land tax.

    How ridiculous, in other words if there is any land tax applicable they wont be liable for any costs (pro rata)?

    Never seen this before, of course I said No to this request.

    Anyone had this one before?

    MTR:)
     
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  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    They pulled the trigger and then releaised their mistake! Worth a shot though as you may have said yes! When is settlement?
     
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  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    If it's unconditional then no requests need to be considered :)
     
  4. MTR

    MTR Well-Known Member Premium Member

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    12 January 2015, they also want another 1 week extension, I actually gave them a 2 week extension when we signed the contract.

    I guess your right Terryw, but it aint happening
     
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  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    In that case you would be liable for the land tax unless you have a special condition? Which you may have.
     
  6. Xenia

    Xenia Adelaide Property Manager Business Member

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    Let's hope there are no delays on settlement MTR.
    hoping it all goes smooth sailing for you.

    In SA we serve penalty notices if settlement has been stuffed around by purchasers - good idea to have it as a back up
     
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  7. MTR

    MTR Well-Known Member Premium Member

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    OK, thanks.
     
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    It's a common enough issue when the sale goes across the new year. If it's an ip and you're liable for land tax you'd bear the full amount if you agree to delete the adjustment (not as big an issue if you're not liable for land tax in nsw).

    The issue has arisen by the purchaser pushing the settlement into the new year - so they can wear it :p
     
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  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    If they are asking for prorata it may work in your favour!
     
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  10. Chilliblue

    Chilliblue Well-Known Member

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    Like all requests, unless you have to or it is in your favour, the answer is generally no.
     
  11. Azazel

    Azazel Well-Known Member

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    Hehe, I've heard cheekier requests around here.
     
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  12. See Change

    See Change Timing Lord Premium Member

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    check the land tax issue with your solicitor .

    We has a request for a clause re land tax , and ( cant remember all details of clause ) but were advised there were no concerns re signing it .

    Cliff
     
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  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    The owner of the property at new year's eve is the one that will pay the land tax. The legal owner would be you MTR. If they are wanting to prorata pay the land insurance it may work in your favour as you would be passing on approx 23/24ths of it to them.
     
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  14. RetireRich101

    RetireRich101 Well-Known Member

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    what is the NSW standard contract clause regarding land tax?

    Just say MTR has many properties in NSW and incur a big land tax bills. Her this property settles 12 Jan. Would the land tax bill be on the buyer if this is a standard NSW contract without any special conditions?
     
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  15. Dan L

    Dan L Member

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    If MTR owns many properties and incurs big land tax bills, and provided the land tax choice is marked on the front page of the Contract, the purchaser would be liable for an adjustment of MTR's land tax liability if the land being sold was liable to land tax in isolation, i.e. without having regard to the other properties owned by MTR.
     
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