Legal news
As has been standard fare for the property industry over the last few years, a new financial year will bring in a number of changes to the development and sales process. It is important that developers are aware of these changes, and begin taking steps to comply with the new requirements in order to avoid any delays or other adverse implications once the amendments take effect.
Partnering with our client Resi Ventures, Sladen Legal has rolled out e-Contracts for use in sales at the Accolade and Monument estates. The use of e-Contracts aligns with Resi Ventures’ goals of implementing fresh ideas and best practices in creating communities and the way it deals with its customers.
As part of the Victorian State Budget, a number of stamp duty changes have been proposed, many of which have received significant media attention (including the abolition of the off the plan duty concession for investors, the abolition of stamp duty for some first home buyers, and the removal of the blanket duty exemption for transfers between spouses).
It was announced as part of the 2017 Federal Budget that from 1 July 2018, purchasers of “newly constructed residential premises” or “new land subdivisions” will be required to remit GST directly to the Australian Taxation Office as part of settlement. Details have not yet been provided on how this measure will be implemented or operate.
The Supreme Court of Victoria has recently handed down the first decision interpreting the ‘economic entitlement’ provisions in the Duties Act 2000 (Vic) (Duties Act). These provisions were introduced in 2012 as part of the shift from a “land rich” to a “landholder” model for assessing duty in Victoria on the acquisition of interests in certain land owning entities.
From 9 November 2015, all dealings with Victoria’s Land Registry will require parties to satisfy strict verification of identity requirements (generally referred to as “VOI”). In addition, these VOI requirements also apply to persons who are given custody of a certificate of title.
The new requirements aim to reduce fraud by placing an obligation on conveyancing professionals to take reasonable steps to verify that a person signing a document is who they say they are and that they have the right to transact with the land.
On 3 May 2013, the Supreme Court of Victoria handed down its decision in Lockwood v PSP Investments Pty Ltd [2013] VSC 10 (Lockwood).
This decision considers a critical issue in off the plan developments – what amendments can be made to a proposed plan of subdivision between the time that a contract is entered into and registration of the plan of subdivision, without giving a purchaser a right to terminate their contract?
