3 Special Conditions to Watch Out For in Land Contract Sales

Everyone knows the importance of having a solicitor look over your land sale contract when buying your dream home. However, apart from the standard s32 conditions you or your solicitor should be aware of any special conditions attached to your sale of land contract. While special conditions are quite common and subject to mutual agreement by both purchaser and vendor, the way they are drafted may have severe impact on the execution of the contract especially if not looked at carefully.

What are special conditions?

Special conditions are additional conditions apart from the standard conditions in a Contract for The Sale of Land.

What happens if I can’t settle on my off-the-plan purchase?

Are you having trouble getting finance before your settlement date?

Is there a risk of failure to settle on your property?

The tightening of foreign lending by banks, the crack down on foreign investments by the federal government and the boom in apartment construction has resulted in the perfect storm of increased settlement risk.

While the demand for Australian property is still strong, it is prudent to be aware of the very real risk that it might be difficult to complete purchases in the current lending environment.

What will happen if you don’t settle?

Need to Know: New Foreign Resident CGT Withholding Tax

What is the change?

On Friday July 1 2016, the rules for all transacting dwellings and commercial property worth over $2 million will change. A 10% non-final Capital Gains Withholding tax will be incurred on these transactions at settlement. This will affect all transactions and including those by Australian Residents

The new legislation imposes an obligation on purchasers to withhold 10% of the purchase price and pay it to the ATO where a seller enters a contract after 1 July 2016.

Never be caught by unexpected changes in Australian property law.

What kind of foreign investor are you?

Australia has a complex foreign investment framework with a greater focus on compliance since new rules were introduced in December 2015. Verity Law breaks down the big things you need to know before you invest in property in Australia.

Are you a Foreign Non Resident or Australian Temporary Resident?

A foreign persons generally need to apply for foreign investment approval before purchasing residential real estate in Australia. Whether you are a Foreign Non Resident or Australian Temporary Resident affects the type of property you can purchase

Foreign Non-Resident are individuals who are no ordinarily residents in Australia including a holder of a visa that permits the individual to remain in Australia for only a limited period.

Changes to Foreign Investment Rules You Need to Know

What’s happening?

The Australian Federal Government has been cracking down on loop holes in foreign investment with stricter foreign investment rules in place since December 2015. Under the new regime, the penalties for breaking the rules are tough. Compliance to the new rules and its enforcement has been strengthend with the ATO aiming to cover more than 600 million transactions annually.

So how do you avoid getting on the wrong side of the ATO?

Do the new rules apply to you?

The Foreign Investment rules apply to ‘a foreign person’ who is defined as someone who is not ordinarily a resident in Australia.