Has anyone else had this demand? We are trying to buy a house that will be our PPR but it has a tenant in there for a few months. The vendor wants US to pay HER land tax. We said no, but we have asked what that amount would be. Just about ready to walk away from this deal.
Anyone else copped this one?
Hi there
it is most unusual to pay the vendor's land tax or be asked to pay it.One of the searches done by a conveyancer/solicitor is to check for land tax and make sure the vendor does pay it at settlement as it is something which attaches to the land and can come back to bite you.
I would be saying that it is something adjusted at settlement and would not be agreeing to pay it.
thanks
Hmmm. My conveyancer mustn't have done the search because they didn't know how much the land tax bill was.
What stage of the transaction are you at? Can you walk away at this stage? If you have only just signed the contract then your conveyancer wouldn't know how much the land tax is yet.
Land tax until settlement is a debt incured by the vendor. The only way you can pay the land tax is if you agree to pay it, which of course you won't.
It will be sorted out at settlement and the appropriate adjustments will be made.
Haven't exchanged yet. Hopefully we can get this sorted.
I'd be "sorting" it by telling her to go jump!
K
This is often an 'added extra' when buying however while you are still in the negotiation phase, reject any requiest to pay the vendor's land tax liability. In NSW it is shown on the contract, likewise whether gst is applicable. Reject this at all approaches. Paying someone else's land tax is not to your advantage, it only adds to your costs (even if you are an investor).
Offer to pay her land tax if she pays the stamp duty. That should shut her up.
I've had it one contract were we purchased last year and also came across it in another property we were doing due diligence on.
Our solicitor advises it is now quite common, and the box may be checked by the sellors solicitor, even when they have no land tax liability.
From what I remember they are looking to reclaim that percentage of the land tax bill for the year after they have sold the property.
They can ask, and you can say no, or use it as a bargaining chip. In most cases it is only going to be a fairly minor amount in the scheme of things….
craigsed.
Got it all sorted. There was a misunderstanding about our intended use. It will be our PPOR. Finally exchanged which is great.
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