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Legal Tip 89: Stamp duty on Off the Plan purchases in NSW

Discussion in 'Legal Issues' started by Terry_w, 16th Oct, 2015.

  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    18th Jun, 2015
    With property purchases in NSW liability to pay stamp duty arises on execution of the contract of sale. s12(2) Duties Act 1997 (NSW)

    But payment can be deferred for up to 3 months because of s17 (however where the property is being mortgaged the duty will need to be paid about 2 weeks before settlement).

    BUT, where the property is off the plan the rules are different. s49A makes the liability arise on the earlier of
    • settlement,

    • assignment, or

    • 12 months after the date of the contract

    However, you will still have up to 3 months to pay because of s17.

    Off the plan is defined at s49A(4) as:

    “"off the plan purchase agreement" means an agreement for the sale or transfer of dutiable property, being land on which a residence is to be erected or developed before completion of the sale or transfer.”