So it seems it has started…
Someone I know started negotiating for a property 3 weeks ago. The price was finally agreed on and they signed the contract they had. What was returned was the vendors contract with clauses requiring the purchaser to pay the tax on sale of property and the land tax and whatever other taxes apply now. Amazingly, they didn’t ask for the purchaser to pay capital gains.
Anyway, the result is a difference in price of about $20,000 and a dispute to boot. It is a real pity that the contract is not valid on signing by the purchaser!
That happened with my last purchase – the vendor snuck in a clause that I had to pay their land tax bill!
They withdrew it as soon as I saw it – just thought they’d try it on I guess.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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