Transfer Duty is as a general revenue tax imposed under the ‘Duties Act’ of 2008 on all transfers and agreements to sell Real Estate/purchases on dutiable property in Western Australia.
Click here for a Transfer Duty Overview, or visit the Office of State Revenue’s Tax Calculator to find out exactly how much duty you are liable for – https://www.wa.gov.au/organisation/department-of-finance/transfer-duty
TRANSFER OF LAND DOCUMENTS
A Transfer of Land document is a legally binding contract between the Buyer and Seller of real estate in WA.
Landgate recommends: “A competent professional such as a settlement agent should always be considered when preparing any land transfer documents.’
The Joint Form of General Conditions for the Sale of Land states that: “the Buyer must deliver the Transfer of Land to the seller within a reasonable time before Settlement,” which is determined by the Department of Commerce (formerly the Settlement Agents Supervisory Board) at least 5 business days.
Essentially, a Buyer must pay their Transfer Duty at least 5 days before settlement. Failure to do so could strip away the purchaser’s protections and remedies under the terms of the sale contract.
WHAT THIS MEANS TO YOU
With Transfer Duty on a median Perth property averaging $19,000 – many Buyer’s are forced to have property transfer duty cost included as part of their loan. However, these loan funds are not always available until the actual day of settlement, which presents a problem for Buyers who need the Transfer Duty paid PRIOR to settlement (at least 5 days).
With very few people being able to access the funds required to pay Transfer Duty in advance, you’re left with two options:
- The Seller must accept an unstamped Transfer of Land, which may remove their protection and remedies (see Section 27 of the Stamp Act of Western Australia)
- Or delay settlement until the Transfer of Land is stamped
The latter of which often results in Buyers:
- Having to borrow from friends or family
- Huyers having to relinquish other assets
- Or, turning to loan sharks/entities of suspect reputation who will advance funds for the short term, at a price
HOW WE CAN HELP!
To avoid unnecessary stress and complications for Buyers, Vicki Philipoff Settlements provide two easy options:
Option 1 – We offer revenue online in-house stamping services, which means Transfer Duty can be paid on the day of settlement. However, if Sellers chose not to accept this option…
Option 2 – We offer to cover our clients Transfer Duty within 7 days prior to settlement date from our separate General Account.
Our Transfer Duty services comply with all aspects of the Trade Practices Act, Trust Regulations and Department of Commerce regulations.
Please contact one of our Conveyancing Specialists for more information.