varying stamp duty amounts if you pay on vs before settlement

Yes that can happen in NSW too.

 

Am originally from Victoria.
Their stamp duty is paid at settlement (when i bought once).
Bought in NSW with a 4 month settlement and wasnt aware at the time that stamp duty is payable within 3 months of contract exchange
Almost had to pay the penalty of an exorbitant amount
Are OTP due to pay stamp duty in this time frame also
(Even though they may be years away from completion)

 

New laws brought in for off the plan property in nsw (a few years ago now). Duty is now payable 12 months after signing the contract for off the plan.

 

• Broken Kitchen Mixer sink Tap
• Oven is not secured in kitchen , it is unstable.
• Loose self in Bathroom
• Loose Toilet seat flap in Toilet
• Loose shower head in bathroom
• Missing towel rail in bathroom
• Need to fill up TERMGUARD (No evidence of TERMGUARD when last got filled in accord with australian standards3660, it is very important because Area is prone to get termites).
• The windows are difficult to open because the lock in wind is too tight to operate efficiently.
• Big Drainage issue in the property:-Hot water services and air conditioning units which release water alongside or near to building walls need to be connected to a drain (If this is not possible then their water outlet needs to be piped several meters away from the building ) as the resulting wet area is highly conductive to TERMITES. Hot water service overflow is not sufficently diverted away from the dewelling perimeter.

 

Regarding stamp duty- conveyancer has send me the details of disbursement but it doesn't have any stamp duty mentioned. It has something call "plus adjustments", which i yet to find out what is covered in that term...

 

they had sent me an email yesterday with a letter they appeared to have mailed to me in December &- obviously i did not receive this nor was there any ever any follow ups to ensure this was received and followed through. 8 months later (a week ago) I was told to forward a bank cheque. (hence my post). throughout my correspondence with them in the past 8 months up until last week via phone and email (mainly through my random queries about the contract) there was no mention of stamp duty ever, besides that letter and last weeks email. the office mgr who was handling my file failed to advise about the daily interest being incurred when I queried the differing amounts once SD was brought to my attention)... basically sitting on this for another 14 days

we will hopefully resolve this soon, I really need to ensure settlement will be a smooth process.

 

It would be unlikely any of this would happen post settlement. Why didn't they agree to do it before?

 

good luck. those just sound like their legal fees. stamp duty is payable to office of state revenue...
no mention of that??

 

Adjustments is the apportioning of expenses and income for things such as water, rates, rents etc.

You should ask about stamp duty.

 

They probably just drew this letter up the day before and back dated it.

 

exactly, how am i to know that it was sent? how do they ensure that their clients received it and more importantly, are actioning it? everyone knows regular post is unreliable

 

And why did they send it via email now and now before!

 

Is this a joke? You need legal advice more than nearly anyone else I've seen on a conveyancing matter in recent times.

Its not "crystal clear" at all - and its scary that you think it is.

 

Hi Everyone,

Stamp duty and government charges has been paid recently and adjustments are az Terry described.

We have in writting from vendor solicitor/conveyancer and realestate agent that those items (mentioned above)will be fixed and handy man is going their tomorrow.

So , i am not holding any money and going ahead with settlement.

Big thanks to all of you.

@thatbum -I think ITrust people that's why thought it is crystal clear.

 

I just wrote a couple of threads on stamp duty and penalty interest for those interested:
Legal Tip 142: Stamp duty on Long Settlements Legal Tip 142: Stamp duty on Long Settlements

Tax Tip 142: Deductibility of Stamp Duty Penalty Interest Tax Tip 142: Deductibility of Stamp Duty Penalty Interest

 

Brave man. I have been through this on the seller side. The purchaser refused to settle until every single item was working to their satisfaction. They advised their conveyancer to delay settlement until all works inspected and completed to their satisfaction. As a seller, I didn't have any issues with a purchaser expecting me to comply with a contract that I signed. All works completed and signed off prior to settlement. Settlement occurred on time.

The issue is if works are not completed to your satisfaction prior to settlement, what will you do after settlement? You can contact the agent and they can ask the seller to comply with the contract but the seller can refuse. To enforce the contract you would have to initiate costly legal proceedings with no guarantee of satisfactory outcome. Best to get these things resolved prior to settlement when you have some level of control over the outcome. After settlement it would be very difficult to have any faults resolved. Hopefully it works out this time but this is something to keep in mind for next time.

 

I had one of my clients do this. They left some junk on the property when sold. Pre-settlement inspection showed this. They promised to remove it after settlement. But they didn't. Buyer had to wear it.

But I also purchased a property with a pile of old wood on it (not firewood). I asked that it be removed, but owners had moved out already and could not come back in time. They promised to remove it after settlement - and to my surprise they did come back and take it.

 

Hello All
An update - I've been chasing for written confirmation of the verbal arrangement (or their position regardless) advising my interest accrued would be offset and I would not be out of pocket for their failure to advise of SD being due last year.
Yesterday after chasing for a week the customer service manager advises via phone that they had fufilled their duties by "sending" that letter - basically wiping their hands from any fiduciary obligation to follow through or compensate for this unnecessary cost that has come at their clients cost.
Of course I cannot accept this.
The only mention of stamp duty was two weeks ago via email (given that most of the correspondence has been via email throughout my dealings with them , once would think that the "Letter" would be followed up an email or call ) advising a bank cheque needed to be forward asap.
There was an "immediate" failure to disclose SD was overdue and further, Failure to disclose that interest was being accrued.
With settlement next week, and this extremely unreasonable position, I am waiting for the principal to call me.