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varying stamp duty amounts if you pay on vs before settlement

Discussion in 'The Buying & Selling Process' started by tangy, 27th Jul, 2016.

  1. tangy

    tangy Member

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    Hi All

    I am confused, I am due to settle on a OTP soon and I was asked by my law firm to pay stamp duty now. the amount didn't really add up when I did a quick calc,when I queried it, they took a while to respond then said that the option to pay now has lapsed and I will be paying on settlement but that they couldn't confirm the amount until settlement notice has been issued.

    why does stamp duty differ if you pay before or ON settlement?

    Thanks
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Penalty interest.

    What state is the property in?
     
  3. House

    House Well-Known Member Premium Member

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    How much was the difference, how soon is 'soon' and when was the contract exchange?
     
  4. tangy

    tangy Member

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    it is in NSW

    soon as I will be settling within the next three weeks as notice will be issued this week.

    Thank you for your advice
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    has 12 months passed since entering the contract?
     
  6. tangy

    tangy Member

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    hi all

    im so upset. it turns out that there was a failure to notify us that stamp duty was due.....8 months ago...
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    That penalty interest is 10.01% pa charge daily after the 12 month mark and it is not deductible either.
     
    Simon Moore likes this.
  8. tangy

    tangy Member

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    I can see that now, in retrospect, why my calc was different to theirs and a breakdown of costs was ignored until today. I guess I just have to mve fwd now and am awaiting their response as to new amount
     
  9. tangy

    tangy Member

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    [thank u for ur help terryW
     
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  10. sleekgeek

    sleekgeek Active Member

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    what happened precisely that the notification failed?
     
  11. Newfast

    Newfast Well-Known Member

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    I am about to settle tomorrow in Vic and so far my conveyancing firm hasn't mentioned anything about Stampduty. This is an IP.

    Secondly, once the property settle , does the vendor/realestate agent who sold me the property still liable to do small repairs in the property as they promiced ?
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    @Newfast - advise the conveyancer immediately to delay settlement or withhold funds to cover the cost of the outstanding issues.
     
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  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You won't be able to settle without the stamp duty being paid if you are borrowing against the property.

    And you will probably never see the vendor again after you hand over the money!
     
    legallyblonde likes this.
  14. Newfast

    Newfast Well-Known Member

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    Hi Terry,

    Realestate agent has promiced me and i have it written from him that vendor has agreed to pay and fix.

    Yesterday realestate agent promiced again that over the weekend or commind saturday this will be done as tradesman has already bought the things and will fix it.

    We wanted early settlement and this is the same real estate who will be managging this property for me. If he doesn't stick with what he has promiced then may be they won't be my PM.

    I have sent an email to my conveyancing agency. I must say in Melbourne everything is soooo slow. This is my experience dealing with my conveyancing firm and realestate agent.
     
  15. Newfast

    Newfast Well-Known Member

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    I have left a voicemail...and will call again
     
  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Have you sought legal advice on this?

    It would be very hard and costly to enforce - who is your contract for the repairs with, the agent or the vendor?
     
  17. Newfast

    Newfast Well-Known Member

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    Agent working on behalf of vendor.

    I have never met vendor
     
  18. Newfast

    Newfast Well-Known Member

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    Leagal advise !!!!!

    For something simple.like this when everything is crystal clear ? I have written acceptance and communication in email !!

    @Terry_w , i am not questioning your experience or advise...i am just surprised.

    So you don't think I be allowed to withhold aome funds as per @Scott No Mates
     
  19. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    What have they promised to do?
     
  20. Perthguy

    Perthguy Well-Known Member

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    In WA, you can arrange for your bank to give you a cheque for stamp duty at settlement but they don't like it! Last time I did that, the bank's solicitor walked me down to the stamping office personally to make sure I handed over the cheque. Hilarious! It is a lot less hassle to have the stamp duty paid prior to settlement.